TeamLease Services Limited (TEAMLEASE) AI Stock Analysis

• Market Cap: ₹18.97B
• Dividend Yield: N/A
• Average Volume (3M): 756.00
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.82
• Revenue Growth: 14.13%
• EPS Growth: 13.09%
• Country: IN
• Employees: 2,117
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): 28.30
• Shares Outstanding: 16,768,900
• 10 Day Avg. Volume: 609
• 30 Day Avg. Volume: 756
• PEG Ratio: -10.65
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 42.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 83.05
• Revenue Forecast (FY): ₹119.91B

• Rating: 58 Neutral
• Price Target: ₹1,202.00 ▼(-24.18% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by solid underlying financial performance (revenue growth, stable profitability, manageable leverage), offset by very weak technical momentum (price below key moving averages with negative MACD and deeply depressed RSI/Stoch). Valuation is reasonable on P/E but lacks dividend-yield support due to missing data.

Positive Factors

Diversified Workforce Services

TeamLease’s multi-segment staffing and HR-services model (temporary staffing, permanent placement, payroll/compliance and training) creates diversified, recurring revenue streams. This reduces reliance on any single product, supports cross-sell, and sustains cash generation through ongoing payroll and service fees over time.

Consistent Revenue Growth

A near-double-digit multi-year revenue growth rate indicates durable demand for workforce solutions. Sustained top-line expansion supports scale economies in recruitment and payroll processing, enabling continued investment in training/apprenticeship offerings and improving long-term margin and market share prospects.

Manageable Leverage & Equity Base

A solid equity base and moderate debt provides financial flexibility to invest in technology, expand training programs, or absorb cyclical downturns without forcing distressed asset sales. Manageable leverage supports sustained capex and working-capital funding critical for scaling associate deployments.

Negative Factors

Weak Free Cash Flow Conversion

Falling free cash flow and weaker conversion of net income into cash reduce internal funding for expansion, training programs, and potential buybacks or dividends. Over several quarters this limits the company’s ability to deleverage, invest in productivity tools, or support margin enhancements without external financing.

Margin Volatility

Fluctuating gross margins, including a recent dip, point to pressure from wage costs, pricing competition or client mix shifts. Persistent margin variability undermines predictable profitability and makes long-term planning for training and technology investments harder, pressuring sustained EPS and cash generation.

Cyclicality of Staffing Demand

Reliance on deployed associate scale ties revenue to macro hiring cycles and sectoral demand. Structural downturns or slower hiring in key client industries can sharply reduce utilization and billable days, making revenue and cash flows inherently cyclical and less predictable over the medium term.

TeamLease Services Limited Business Overview & Revenue Model

Company Description

TeamLease Services Limited provides human resource services to various industries in India. The company offers temporary and permanent recruitment, payroll process outsourcing, regulatory compliance, and vocational training/education and assessment services. It also provides staffing services, including consumer, industrial, retail and e-commerce, emerging, IT, telecom, and BFSI sector staffing; hiring services; infrastructure and assets management services for hardware, software, personal protect equipment, office space and transportation, office and administration, hygiene and sanitization, and other areas; learning solutions, such as higher education solutions, corporate learning solutions, and CSR services; and degree apprenticeship services comprising hiring apprentices, apprenticeship facilitation, and placement program for institutes. The company offers its solutions primarily to financial services, consumer, electronics, manufacturing, telecom, technology, healthcare, agriculture, chemicals, retail, ecommerce, and logistics and transportation industries. TeamLease Services Limited was incorporated in 2000 and is headquartered in Bengaluru, India.

How the Company Makes Money

TeamLease generates revenue primarily through its staffing services, which include providing temporary and permanent workforce solutions to businesses. The company charges clients a fee based on the salaries of the employees it places, which typically includes a margin over the payroll costs. Additionally, TEAMLEASE earns revenue from payroll and compliance outsourcing services, where they manage the entire payroll process for clients, ensuring compliance with labor laws and regulations. The company also has a skill development initiative, which is funded by government partnerships and corporate training contracts, contributing to its overall revenue. Strategic partnerships with various organizations and government bodies further enhance its service offerings and revenue potential.

TeamLease Services Limited Financial Statement Overview

Summary

Financials show strong multi-year revenue growth and generally stable profitability, supported by a healthy equity base and manageable leverage. However, the latest gross margin dip and weakening free-cash-flow conversion/FCF decline temper the score.

Income Statement

TeamLease Services Limited has demonstrated a strong revenue growth trend over the years, with a notable increase from 2020 to 2025. The Gross Profit Margin has fluctuated, with a dip in the latest annual report, indicating some potential issues with cost management. The Net Profit Margin is stable, and the EBIT and EBITDA Margins show consistent profitability, albeit with some room for improvement.

Balance Sheet

The company's balance sheet highlights a healthy equity position with a moderate Debt-to-Equity Ratio, suggesting manageable leverage levels. The Return on Equity has been positive, reflecting the company's ability to generate profits from shareholders' investments. The Equity Ratio indicates a stable capital structure, although there is a slight increase in liabilities over assets, which needs monitoring.

Cash Flow

Cash flow analysis reveals fluctuating free cash flow, with a decrease in the latest year. The Operating Cash Flow to Net Income Ratio is positive, indicating cash earnings are backing reported profits. However, the decline in free cash flow growth is a concern, and the Free Cash Flow to Net Income Ratio suggests potential issues in converting income into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	114.67B	111.56B	93.22B	78.70B	64.80B	48.81B
Gross Profit	3.24B	2.77B	3.21B	3.00B	6.78B	5.18B
EBITDA	1.80B	1.38B	1.80B	1.64B	903.17M	1.30B
Net Income	1.15B	1.09B	1.12B	1.11B	384.28M	775.01M
Balance Sheet
Total Assets	0.00	21.45B	19.37B	17.68B	15.40B	13.11B
Cash, Cash Equivalents and Short-Term Investments	2.41B	2.41B	4.32B	4.39B	3.43B	3.50B
Total Debt	0.00	1.18B	1.05B	1.00B	598.33M	228.49M
Total Liabilities	-9.23B	12.22B	11.26B	9.47B	8.35B	6.55B
Stockholders Equity	9.23B	9.07B	7.98B	8.08B	6.93B	6.52B
Cash Flow
Free Cash Flow	0.00	733.90M	973.00M	1.07B	-195.45M	2.93B
Operating Cash Flow	0.00	1.04B	1.18B	1.26B	-61.48M	3.03B
Investing Cash Flow	0.00	-1.48B	407.90M	-1.23B	-885.02M	-122.67M
Financing Cash Flow	0.00	-350.30M	-1.51B	-243.59M	-130.74M	-444.03M

TeamLease Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1585.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TEAMLEASE, the sentiment is Negative. The current price of 1585.4 is above the 20-day moving average (MA) of 1256.83, above the 50-day MA of 1392.27, and below the 200-day MA of 1712.99, indicating a bearish trend. The MACD of -81.26 indicates Positive momentum. The RSI at 23.51 is Positive, neither overbought nor oversold. The STOCH value of 19.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TEAMLEASE.

TeamLease Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAJGVK	72 Outperform	₹19.19B	18.32	―	0.48%	9.49%	40.16%
UNIPARTS	70 Outperform	₹20.74B	16.41	―	3.06%	-3.81%	14.23%
MSTCLTD	64 Neutral	₹29.83B	17.92	―	9.28%	-48.50%	92.06%
TEAMLEASE	58 Neutral	₹18.97B	15.64	―	―	14.13%	13.09%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
QUESS	55 Neutral	₹28.81B	13.93	―	4.70%	-16.43%	-75.38%

TeamLease Services Limited Corporate Events

TeamLease Shifts Registered Office Within Bengaluru City Limits

TeamLease Services Limited has shifted its registered office within Bengaluru, moving from its earlier Koramangala Industrial Layout address to new premises at INFINIX SQUARE in HAL Industrial Estate, Vibhutipura, effective January 8, 2026. The move, approved by the board via circular resolution, remains within the same city limits and Registrar of Companies jurisdiction, indicating an administrative relocation that is not expected to alter the company’s regulatory framework or listing status but may support operational consolidation or infrastructure needs as the HR services provider continues to expand its activities.

TeamLease Names Vamsikrishna Ithamraju as Chief Digital and Information Officer

TeamLease Services has appointed Vamsikrishna Ithamraju as Chief Digital and Information Officer (CDIO), effective January 7, 2026, to lead digital transformation projects and head technology initiatives for the company’s employment cluster. Bringing over two decades of technology leadership experience across financial services, fintech, capital markets and consulting, including his recent role as CTO at Axis Mutual Fund, Ithamraju is expected to strengthen TeamLease’s push toward cloud-native, AI-led and scalable digital platforms, supporting its operational efficiency, customer experience, and competitive positioning in the technology-driven HR and staffing industry.