TeamLease Will Buy Back Rs 238 Crore Worth of Shares at Rs 1,600: Profit Up 26% in Q4 FY26

May 21, 2026
Posted by: Neeraj Pandey
Category: News

TeamLease Services announced on 20 May 2026 that its board has approved a buyback of up to 14.87 lakh equity shares at Rs 1,600 per share, totalling Rs 238 crore, through the tender offer route. The buyback price of Rs 1,600 represents a 15.37 percent premium over the NSE closing price and a 15.58 percent premium over the BSE closing price as of 8 May 2026. The announcement came alongside Q4 FY26 results that showed a 25.6 percent jump in net profit.

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TeamLease Buyback: Key Details

Buyback Size: Rs 238 crore
Buyback Price: Rs 1,600 per share (fixed)
Number of Shares: 14,87,500 equity shares
% of Paid-up Capital: 8.87% of total paid-up equity capital as of 31 March 2026
Route: Tender offer route
Premium to NSE Price: 15.37% over 8 May 2026 NSE closing price
Funding: Entirely from existing free cash balances
Approvals Required: Shareholder approval via special resolution + statutory approvals
Buyback Manager: Nuvama Wealth Management Limited
Promoter Holding (15 May 2026): 31.11%

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TeamLease Q4 FY26 Results

Q4 FY26 PAT: Rs 43.91 crore (+25.6% YoY from Rs 34.97 crore in Q4 FY25)
Q4 FY26 Revenue: Rs 2,924.87 crore (+2.34% YoY)
Q4 FY26 PBT: Rs 51.61 crore (+29.54% YoY from Rs 39.84 crore)
Q4 FY26 EBITDA: Rs 45.3 crore (-4% YoY from Rs 47.7 crore)
Q4 FY26 EBITDA Margin: 1.55% (vs 1.7% in Q4 FY25)
FY26 Full Year PAT: Rs 147.1 crore (+33% YoY from Rs 110.5 crore in FY25)
FY26 Full Year Revenue: Rs 11,859 crore (+6% YoY from Rs 11,201 crore)
FY26 Full Year EBITDA: Rs 158 crore (+14% YoY)
FY26 Full Year PBT: Rs 155.9 crore (+36% YoY)
Net Free Cash: ~Rs 600 crore (includes Rs 143.1 crore IT refund with Rs 13 crore interest)
Headcount Q4 FY26: 3,40,600 (-2% YoY) but +6,000 net additions in the quarter
New Clients Q4: 109 new enterprise clients added in March quarter

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What the Buyback Means for Investors

A tender offer buyback at Rs 1,600 is the clearest possible signal that TeamLease management believes the current share price is below fair value. The Rs 600 crore net free cash position — built partly from Rs 143.1 crore in income tax refunds received in FY26 — gives the company more than enough firepower to fund the Rs 238 crore buyback entirely from existing balances without touching working capital or debt. CEO Suparna Mitra described FY26 as a year of ‘disciplined execution,’ with 14 percent full-year EBITDA growth and margin expansion across businesses.

For shareholders: in a tender offer buyback, eligible shareholders can tender their shares directly to the company at Rs 1,600 per share. The record date and tender offer timeline will be announced after shareholder approval through a special resolution. Retail investors (holding up to Rs 2 lakh of shares on the record date) typically receive a reserved quota and higher acceptance ratios. The EPFO-related legal proceedings (writ petitions in Karnataka and Gujarat High Courts against show cause notices totalling Rs 184.58 crore) remain an overhang that investors should monitor.

Key Risk: EPFO writ petition against Rs 184.58 crore claim in Karnataka High Court (filed 12 May 2026). A negative outcome could affect free cash.

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Conclusion

TeamLease Services has backed a 26 percent Q4 profit growth with a Rs 238 crore buyback at Rs 1,600 per share — a 15.4 percent premium over recent market prices. With Rs 600 crore net free cash, 33 percent FY26 full-year PAT growth and 109 new enterprise clients in Q4, the buyback is funded from a position of financial strength. Watch for the shareholder meeting date and record date announcement. Track live on Univest. Consult a SEBI-registered advisor before tendering shares.

FAQs on TeamLease Buyback

What is the TeamLease buyback price and size?

Ans. TeamLease Services has announced a buyback of Rs 238 crore at Rs 1,600 per share through the tender offer route. This covers 14,87,500 shares (8.87% of paid-up capital). The buyback price is a 15.37% premium over the NSE closing price on 8 May 2026.

What was TeamLease Q4 FY26 profit?

Ans. TeamLease Q4 FY26 PAT was Rs 43.91 crore (+25.6% YoY). FY26 full-year PAT was Rs 147.1 crore (+33% YoY). EBITDA for FY26 grew 14% to Rs 158 crore. Net free cash stands at approximately Rs 600 crore.

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Author: Neeraj Pandey

Neeraj Pandey is a Financial Content Writer at Univest, covering Indian equity markets with a specialisation in quarterly earnings previews and analyst consensus analysis. His published work tracks Q4 FY26 results across 10+ sectors — from IT heavyweights like Infosys and TCS to PSUs like Coal India and Balmer Lawrie, and mid-caps like Neuland Laboratories, MCX, and Whirlpool of India. His writing approach is data-first: every article anchors on NSE/BSE filings, analyst consensus estimates (revenue, PAT, EBITDA margins), 52-week price context, and YoY/QoQ comparisons — giving retail investors the same structured framework institutional desks use before an earnings event. He combines SEO-optimised structure with rigorous data sourcing, ensuring each preview ranks for investor search intent while meeting SEBI editorial standards. All articles are reviewed by Univest's in-house equity research team, led by Ankit Jaiswal, Senior Equity Research Analyst, to meet SEBI editorial standards.