In a strategic move to bolster shareholder value, Teamlease Services Ltd has announced a share buyback plan worth Rs 238 crore. This decision comes as the company's stock has experienced a significant decline, with a 26% drop over the past year and a 10% decrease year-to-date. The buyback will be executed through a tender offer, targeting over 14.87 lakh shares, and will utilize up to 25% of the company's free reserves, funded from existing cash balances. This accounts for 8.87% of the equity share capital.
The announcement coincided with the release of Teamlease's Q4FY26 earnings report, which showed a net profit of Rs 44 crore, marking a 26% increase from Rs 35 crore in the same period last year. Revenue from operations for the March-ended quarter stood at Rs 2,925 crore, a modest 2.34% rise from Rs 2,858 crore in the previous year. However, the topline witnessed a 2% sequential decline from Rs 2,990 crore in the preceding quarter. For the full fiscal year, the company's revenue reached Rs 11,791 crore, up from Rs 11,156 crore in FY25, while the bottom line surged by 28%.
Teamlease's EBITDA for the quarter was Rs 46 crore, a 4% decrease from Rs 48 crore in Q4FY25, but an 8% sequential increase from Rs 43 crore in Q3FY26. The EBITDA margin stood at 1.5%, compared to 1.4% in the previous quarter and 1.7% in the year-ago period.
The company also reported robust client acquisition, adding 109 new enterprise clients during the quarter. Additionally, 24% of gross associates hired were first-time job seekers, reflecting Teamlease's commitment to enhancing employability. The quarter saw a net headcount addition of approximately 6,000, spread across various sectors.
This buyback initiative is seen as a positive step to enhance shareholder returns and stabilize the stock performance amid market volatility. Investors and market analysts will be closely monitoring the impact of this move on Teamlease's stock price and overall market perception.
