TeamLease Services Ltd

TeamLease Services Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.11, indicating minimal leverage relative to its equity base of 10.43 billion INR. The company holds 1.70 billion INR in cash and equivalents against 1.16 billion INR in long-term debt, resulting in a net cash position. Liquidity is supported by a current ratio of 1.45, which suggests adequate short-term asset coverage for liabilities. Operating cash flow stands at 3.02 billion INR, while free cash flow is 1.68 billion INR after capital expenditures of 294.5 million INR. The risk assessment flags liquidity risk as low, consistent with the strong cash generation and low debt levels.

Profitability metrics show a return on equity (ROE) of 13.39% and a return on assets (ROA) of 4.99%. The company reported net income of 1.40 billion INR on revenue of 117.91 billion INR, yielding a net margin of approximately 1.18%. Operating income was 949 million INR, indicating an operating margin of roughly 0.81%. While specific cohort medians are not provided for direct comparison, the ROE suggests efficient use of shareholder equity. The thin operating margin is characteristic of high-volume, low-margin staffing and services businesses, where scale and operational efficiency drive profitability.

Revenue concentration and segment details are not explicitly broken down in the available data, but the classification as Professional Services within Industrials suggests a focus on B2B workforce solutions. The company’s activity is likely diversified across various industrial clients, though specific geographic or segment revenue mixes are absent from the current snapshot. The lack of detailed segment data limits the ability to assess concentration risk, but the overall revenue base of 117.91 billion INR indicates a substantial market presence.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to quantify year-over-year growth rates or identify long-term trends. The current financial snapshot reflects a single normalized period, providing a static view of performance rather than a dynamic growth profile. Future analysis would require historical data to assess consistency and acceleration in revenue and earnings.

Risk factors are assessed as low for both liquidity and dilution. The key flags section notes no immediate filing-based liquidity or dilution flags. The shares outstanding are identical for basic and diluted counts (16.76 million), indicating no significant dilutive securities such as options or convertible debt are currently impacting the share count. This stability in share count supports earnings per share integrity and reduces the risk of equity dilution in the near term.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of 1,852.18 INR and a median of 1,825.00 INR. The mean recommendation is 1.45, leaning towards a strong buy, with 6 strong buy ratings and 5 buy ratings, and no hold ratings. This consensus suggests positive market expectations for the company’s future performance. The absence of negative news or filing observations further supports a stable operational environment.

Revenue grew at a 16.1% CAGR over four years, demonstrating strong top-line expansion momentum.

Net income surged 28.4% year-over-year in FY0, indicating accelerating profitability trends.

Analysts project 32.8% upside to the mean price target, reflecting strong market confidence.

Free cash flow increased 26.4% year-over-year, highlighting robust cash generation capabilities.

Operating margin of 0.8% sits in the bottom quartile of the cohort, signaling weak pricing power.

Net margin of 1.2% remains well below the cohort median of 5.3%, indicating thin profitability.

Net income declined 3.0% year-over-year in FY-1, revealing recent earnings volatility.

Long-term debt rose to 1.18 billion INR in FY-1, increasing leverage despite low risk flags.

Revenue INR 29.25B; Operating income INR 307.8M.

• ▍Revenue INR 29.25B
• ▍Operating income INR 307.8M
• ▍Net margin 1.5%

Revenue INR 30.13B; Operating income INR 228.7M.

• ▍Revenue INR 30.13B
• ▍Operating income INR 228.7M
• ▍Net margin 1.4%

Revenue INR 30.32B; Operating income INR 241.8M.

• ▍Revenue INR 30.32B
• ▍Operating income INR 241.8M
• ▍Net margin 0.9%

Revenue INR 117.91B, +5,7% YoY; Operating income +12,4% YoY.

• ▍Revenue INR 117.91B, +5,7% YoY
• ▍Operating income +12,4% YoY
• ▍Net income +28,4% YoY
• ▍Free cash flow +26,4% YoY
• ▍Net margin 1.2%

Revenue INR 111.56B, +19,7% YoY; Operating income +2,7% YoY.

• ▍Revenue INR 111.56B, +19,7% YoY
• ▍Operating income +2,7% YoY
• ▍Net income −3,0% YoY
• ▍Free cash flow −8,0% YoY
• ▍Net margin 1.0%

Revenue INR 93.22B, +18,4% YoY; Operating income +6,8% YoY.

• ▍Revenue INR 93.22B, +18,4% YoY
• ▍Operating income +6,8% YoY
• ▍Net income +0,7% YoY
• ▍Free cash flow +7,0% YoY
• ▍Net margin 1.2%

Revenue INR 78.70B, +21,4% YoY; Operating income +155,3% YoY.

• ▍Revenue INR 78.70B, +21,4% YoY
• ▍Operating income +155,3% YoY
• ▍Net income +189,7% YoY
• ▍Free cash flow +102,2% YoY
• ▍Net margin 1.4%

Revenue INR 64.80B; Operating income INR 301.5M.

• ▍Revenue INR 64.80B
• ▍Operating income INR 301.5M
• ▍Net margin 0.6%