Quess Corp, a leading business services provider based in Bengaluru, is sharpening its focus on high-margin business segments to drive sustainable and profitable growth. The company, which has built a reputation through its staffing, managed services, and workforce solutions, is positioning itself for double-digit revenue and profit growth in FY26 despite ongoing challenges in the IT hiring sector.

Demand Sustained by Global Capability Centres

According to Guruprasad Srinivasan, Executive Director and CEO at Quess Corp, the Global Capability Centres (GCCs) have emerged as a major source of business for the company. Almost 70% of the firm’s activity is now linked to the GCC space, indicating a significant shift in demand trends.

“Our demand, even for Q1, has been strong with over 1,300 open mandates, especially for high-end technology profiles,” said Srinivasan.

This robust demand has helped cushion the impact of subdued hiring in the broader IT services industry, providing Quess Corp with a more stable foundation for revenue generation.

Growth Forecast: Double-Digit Revenue and Faster Profit Expansion

Quess Corp is confident of achieving entry-level double-digit growth in revenue in FY26. More significantly, it expects profitability to outpace revenue growth, thanks to a deliberate focus on higher-margin business units.

“We remain focused on accelerating profit growth more rapidly than revenue in the coming year,” said Srinivasan.

This approach reflects the company’s strategy to prioritise quality over quantity, choosing projects and business areas that yield stronger financial returns.

Financial Snapshot: Q4FY25 Highlights

In the January–March quarter of FY25 (Q4FY25), Quess Corp reported:

• Revenue: ₹3,656 crore

• EBITDA margin: 1.84%

• Loss: ₹97 crore

The loss was mainly attributed to a one-time exceptional expense of ₹157 crore due to a demerger undertaken during the period.

Segmental Insights: Margin Disparity Between Business Lines

Sushanth Pai, Chief Financial Officer at Quess Corp, shared insights on the disparate contribution of business segments to the company’s overall profitability.

• General Staffing contributes 87% of revenue but only 59% of profits, with thin margins of around 1.5%.

• Professional Staffing, although a smaller slice at 6% of the revenue, contributes a whopping 23% of profits, with margins of approximately 9%.

“Professional staffing has seen impressive growth, with margins up by 42% year-on-year,” Pai noted.

This performance validates the company’s shift in focus towards high-margin and high-value offerings rather than bulk low-margin staffing.

Focus on Strategic Interventions

Looking ahead, Quess Corp plans to implement strategic operational interventions that will help unlock better profit realisation from both existing and new segments. These include:

• Optimising segment performance to push profitability beyond top-line growth

• Accelerating automation and technology integration to improve cost-efficiency

• Expanding client relationships within the fast-growing GCC space

These steps are expected to not only stabilise the company's performance but also elevate its brand value as a premium service provider in the industry.

Stock Market Snapshot and Investor Perspective

As of 10:08 am on the NSE, Quess Corp shares were trading at ₹333.90, reflecting a 45% decline over the past year. The company's market capitalisation stood at ₹4,957 crore.

Despite this decline, the management’s confidence in future growth and a clear shift to high-margin areas is expected to reassure investors and potentially drive long-term value creation.

Conclusion: Sustainable Growth Through Smart Positioning

With steady demand from Global Capability Centres, an increased focus on profitable segments, and a resilient management outlook, Quess Corp appears poised for a revival in both revenue and profitability in FY26.

While short-term headwinds—such as losses from exceptional items and pressure in the IT hiring space—remain, the company’s pivot towards professional staffing and high-end tech mandates is a strong step toward future-proofing the business.

As the company continues its journey, investors and stakeholders will be closely watching the execution of its high-margin strategy, especially in the professional staffing and GCC-aligned services space.

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