Quess Corp Ltd Management Discussions

Macroeconomic and Industry Environment Global Economic Outlook:

The world economy progressed to a steady state in 2024, achieving a GDP growth rate of 3.1%. Growth in advanced economies moderated, while the emerging economies continued to be the growth drivers. On the inflation front, the IMF reports that while the anticipated disinflation is taking hold, elevated inflation continues to persist in several countries.

2024 was a year of political transitions as most economies of the world went through the elections. The new US administration has introduced significant shifts to the global trade order with its new tariff regime. In response to these developments, the IMF has revised its growth outlook, underscoring the uncertainty and fluidity that are currently defining the global economic landscape.

Global headline inflation is expected to continue its downward trajectory and is estimated to be at 4.3% in 2025, reaching 3.6% in 2026.

In the current ever-shifting trade policy landscape across the globe, several downside risks dominate the outlook. Emerging economies will face challenges in sustaining their growth projections amid the evolving tariff war and retaliatory trade policies. Parallelly, shifting employment patterns, migratory trends, and an ageing population may weigh on the long-term growth trajectory of several economies. Additionally, financial markets may come under exchange rate volatility, unpredictable capital flow, and renewed inflationary pressures.

In this context, de-escalation of trade tensions along with policy clarity and stability becomes crucial for the global economy. Central banks and the governments have to work closely to ensure adequate and preventive fiscal measures. Global collaboration is critical at this junction to provide a stable trade environment for the economies to stabilise and sustain growth in the coming years.

In 2024, global labour market dynamics underwent a significant transformation, influenced by accelerating technological change, the green transition, and shifting demographic trends. According to the World Economic Forums Future of Jobs Report 2025, while automation and AI continue to reshape job roles and demand, the net impact is positive, with an estimated 78 Mn new jobs expected by 2030. Advancements in Artificial Intelligence will continue to be forces to reckon that would bring substantial increase in productivity and changes to the market forces.

India Economic Overview:

Indias economy in FY 2024-25 demonstrated resilience amid global challenges. Key economic indicators reflected steady growth and continued structural improvements, underscoring Indias position as the fastest-growing major economy. Indias GDP is estimated to grow at 6.5% in FY 2024-25, a moderation from 7.6% from FY 2023-24. The current growth rate is aligned with the decadal average, reflecting sustained economic momentum and resilience.

Major sectoral performance in FY 2024-25 highlights the strength of the Indian economy, with key sectors contributing positively to the growth. The agriculture sector showed a stable improvement with 3.8% growth, up from 1.4% the previous year, owing to favourable monsoon. The services sector continued its robust performance, growing at 7.2% (7.6% in FY 2023-24). The industrial sector recorded moderate growth of 6.2%, down from 9.5% in FY 2023-24, impacted by global trade disruptions and supply chain uncertainties.

Indias macroeconomic stability was further underpinned by stable inflation, improving fiscal indicators, strong remittances, resilient domestic consumption, and favourable government policies.

Key Economic Indicators

Indicators	FY 2023-24	FY 2024-25 (Est.)	Outlook
GDP	7.6%	6.5%	Stable growth: global headwinds managed through strong domestic demand
Retail Inflation	5.4%	4.9%	Expected to align with RBIs 4% target in FY 2025-26
Capex as % of GDP	3.2%	3.4%	Public infrastructure focus continues
Fiscal Deficit (% of GDP)	5.6%	5.1% (targeted)	Consolidation underway
Private Consumption (PFCE)	4.0%	7.3%	Recovery driven by rising rural demand and urban consumption

Employment indicators show improvement with rising formal job creation and better participation rates. GST collections registered a year-on-year growth of over 9%, reflecting strong consumption and formalisation of the economy. Corporate India delivered robust profit growth in FY 2024-25, underscoring improved efficiencies and resilient demand. The Governments continued emphasis on capital expenditure, coupled with the impact of the Production Linked Incentive (PLI) scheme, has reinforced a strong foundation for industrial revival and job creation. The Government continued its thrust on employment generation through the Employment Linked Incentive (ELI) scheme, which incentivises both employers and employees, with an emphasis on formal job creation in the manufacturing sector.

Outlook

The economic outlook remains positive, with Indias economy projected to grow at 6.5% GDP for FY 2025-26. Rising rural demand fuelled by a well-performing agriculture sector, increasing private consumption measures by the Union Budget, continuing infrastructure investment, and a robust financial sector are contributing to sustained growth. According to the RBI, retail inflation is expected to align closer to the 4% target in FY 2025-26. With stable macroeconomics, favourable demographics, a technology-led economy, and a push for clean and green energy, India is well set to claim its spot as the worlds fourth-largest economy. Structural reforms and improvements in the ease of doing business will be critical to sustaining momentum. The evolving global trade volatility and potential global economic slowdown remain key external risk factors.

Indian employment and workforce landscape:

Indias employment landscape has been evolving rapidly, shaped by its demographic advantage, sustained economic growth, policy reforms, societal shifts, and technological advancements. It is the worlds largest labour market with a working-age population of over 900 Mn.

Indias demographic advantage continues to be a fundamental pillar of its long-term economic and employment trajectory. As of 2024, the working-age population (15-59 years) constitutes approximately 64.4% of the total population and is projected to rise to 65.2% by 2031. This sustained growth provides a unique opportunity in enhancing productivity, widening the talent pool, and accelerating employment growth.

Employment growth in India witnessed a resurgence in the post-pandemic period, reversing many long-term structural trends and bringing in a new phase of labour market recovery. As industrial and services activity gained momentum, businesses resumed hiring plans, leading to an increase in regular formal sector employment. This revival in employment has been accompanied by encouraging improvements in the key labour market indicators. The unemployment rate showed a steady decline, reaching 4.1% in 2023-24, compared to 4.8% in the previous fiscal year. The Labour Force Participation Rate (LFPR) and the Worker Population Ratio (WPR) increased to 32.8% in 2023-24, up from 27.5% in 2017-18, indicating a recovery in the labour market. Womens participation in with the Female Labour Force Participation Rate (FLFPR) rising to 32.8% in 2023-24, up from 27.5% in 2017-18. This positive trend was supported by higher engagement in self-employment, gig work, and rural non-farm activities, signalling an inclusive recovery.

Job creation in India registered strong growth in FY 2024-25, with 46.7 Mn new jobs added across both formal and informal sectors. The manufacturing sector witnessed a 10.0% increase in employment, and the services sector expanded by 17.9%, driven by strong domestic and international demand. Formal employment indicators like Employees

Provident Fund Organisation (EPFO), Employees State Insurance Corporation (ESIC), and National Pension System (NPS) showed steady upticks, reflecting rising formalisation and improved workforce security. EPFO consistently added over 14-19 Lakh members monthly, driven largely by youth enrolment. ESIC saw steady additions of 20-23 Lakh workers per month, with significant participation from women and younger demographics. NPS also recorded over 12 Lakh new private-sector subscribers, with assets under management growing 23% to 14.43 Lakh Crore.

These trends indicate that a more resilient, accessible, and dynamic employment ecosystem that can effectively leverage the countrys demographic dividend is on the horizon as India continues to urbanise, digitise, and industrialise.

Government initiatives:

The Government of India has played a pivotal role in formalising the labour market and incentivising job creation by implementing several policy initiatives and reform measures. The Employment-Linked Incentive (ELI), Production-Linked Incentive (PLI), Make in India, and the Prime Ministers Employment Generation Programme (PMEGP) have all been designed to encourage industries to expand local operations and generate employment opportunities on a large scale. These programmes have specifically targeted sectors such as manufacturing and MSMEs, providing financial support and policy incentives to encourage them to scale operations and invest in human capital. Complementing these initiatives, the simplification and codification of labour laws have helped alleviate the compliance burden for employers and ensure uniformity and security for workers, thereby promoting formal employment and increasing the convenience of conducting business.

In parallel, the Government of India has consistently prioritised talent development to improve the employability of Indias workforce. National Skill Training Institutes (NSTIs) have been established in key locations as part of a nationwide initiative to enhance industrial training infrastructure. Skill India Digital and other platforms are providing scalable and inclusive access to certified training and apprenticeship opportunities through their centres throughout the nation. These endeavours are indicative of a comprehensive strategy to provide the labour force with the necessary skills for both traditional and emerging sectors, ensuring alignment between industry demand and talent supply.

Indian Staffing Industry Overview

Indian staffing and recruitment market is projected to reach a size of USD 48.53 Bn by the year 2030, growing at CAGR of 13.2%

Indias staffing industry has seen an upswing after the COVID years, aided by economic recovery, improved corporate performance, increasing formalisation of the workforce, the emergence of blended workforce models, the rise of remote and gig work, and accelerated adoption of technology.

YoY Growth - 15.3% YoY Staffing Industry New

employment growth - 2024

¦ 2024: Market improved with new employment demand across most sectors, staffing continued to add double-digit annual growth

¦ 2023: Post pandemic market averaged out

new employment, IT Industry impacted due to geopolitical scenario

¦ 2022: Robust employment market generating

growth higher than pre-pandemic years

¦ 2021: Due to Covid slowing employment

¦ 2020: Market volatility impacted employment,

slowing staffing growth trend

¦ 2019: Strong consistent double digit growth

YoY for industry

The Indian Staffing Federation (ISF) estimates that the countrys flexi staffing sector added approximately 220,000 new workers in FY 2024-25, marking a 15.3% YoY increase from 14% in FY 2022-23. This growth has been fuelled by industries such as FMCG, e-commerce, manufacturing, healthcare, retail, and logistics. One of the prominent trends in the staffing industry has been the growth of IT flexi staffing, which is expected to maintain a 7% CAGR from FY 2023-24 to FY 2025-26.

General Flexi Staffing:

The Indian general flexi staffing industry continued its momentum with a healthy double-digit yearly growth of 16.2%. This growth was primarily driven by robust demand for workforce solutions across a broad spectrum of sectors, including FMCG, e-Commerce, Manufacturing, Healthcare,

Retail, Logistics, Banking, Energy sectors. The accelerated adoption of digital technologies across industries has heightened the need for a flexible and skilled workforce. A key transformation in Indias staffing industry is the demographic shift within the flexi workforce. In 2024, the proportion of youth participation (individuals over 24 years of age) in flexi jobs increased to 35%, marking an 83% jump from 19% in 2023. This growth suggests a greater awareness of formal employment opportunities among young professionals, many of whom are opting for temp jobs, project-based employment, and gig employment to gain industry experience. The staffing industry is thus playing a crucial role in bridging the employment gap by offering entry-level opportunities that align with industry needs, particularly in field-driven sectors. The industry is also witnessing greater inclusion and geographic diversification. Women now constitute 25% of the flexi workforce, with Tier II and III cities accounting for about 35-40% of new staffing mandates.

IT Flexi Staffing:

The IT flexi-staffing industry, which encompasses temporary and contract-based IT professionals, has seen substantial growth. As of FY 2023-24, the flexi workforce constituted approximately 5.5% of the total employment in the IT and IT-enabled Services (ITeS) sectors, while Global Capability Centres (GCCs) exhibited a slightly higher penetration rate at 8.2%. This trend underscores the industrys pivot towards workforce agility, enabling companies to swiftly adapt to evolving project demands and technological advancements. As Indias digital economy continues to expand with projections to contribute 20% of the nations Gross Value Added (GVA) by 2029-30, staffing firms are poised to play a crucial role in supplying the skilled workforce necessary to sustain this growth.

Global staffing industry:

The global staffing market is poised to recover following a two-year decline. The staffing industry generated USD 626 Bn in revenue globally in 2024. The industry is anticipated to reach USD 650 Bn in 2025, with a projected growth rate of 5%, creating opportunities for businesses worldwide.

Focus overseas market for Quesss growth in international markets

Middle East	In the Middle East, the staffing environment remains stable, supported by ongoing investments in infrastructure, logistics, healthcare, and hospitality. The market is expected to grow at a CAGR of 9.6% from 2024 to 2031. Governments in the region continue to advance nationalisation efforts, but skill gaps - especially in blue- and grey-collar roles - sustain strong demand for outsourced workforce solutions. The region is expected to deliver steady growth.
Singapore	Singapore, while mature and well-regulated, has seen increased constraints on foreign talent inflow due to the implementation of the COMPASS framework. The proportion of firms offering flexible work arrangements increased from 68.1% in 2023 to 72.7% in 2024. The system favours high-skilled local employment and places greater scrutiny on work pass approvals, leading to tighter supply conditions. As a result, while demand exists, fulfilment challenges and the cost of compliance remain headwinds in the near term.
Malaysia	Malaysia represents a promising but nascent opportunity. The country is gaining traction as a regional services hub with favourable demographics and improving digital infrastructure.
Philippines	The Philippines offers a growing, English-speaking talent pool well-suited for BPO and service-centric roles. The staffing sector is expected to grow steadily, driven by the expansion of global services, domestic consumption, and digital transformation in local enterprises.

Emerging trends:

Indias Economic and Demographic Tailwinds	Indias strong economic momentum, characterised by GDP growth, industrial expansion, and digital infrastructure, combined with a demographic dividend, is reshaping the workforce landscape.
	The young, tech-savvy talent pool is gravitating toward flexible work models such as gig roles, freelancing, and contract assignments. The rise of remote and hybrid work has expanded access to Tier 2/3 talent, while Agile and DevOps practices are accelerating the move to project-based hiring.
	As borderless work becomes the norm, Indian staffing firms are emerging as global talent enablers through Employer of Record (EOR) and Professional Employer Organisation (PEO) models, fuelling demand for tech-led, scalable, and compliant workforce solutions.
Rise of Global Capability Centres (GCCs)	India has emerged as a global hub for Global Capability Centres (GCCs), with over 1,600 centres across BFSI, retail, healthcare, technology, and manufacturing. Evolving from back-office units into strategic hubs for innovation and digital transformation, GCCs are fuelling strong demand for professional staffing, project-based talent, and managed services, particularly in niche areas like AI/ML, cloud, cybersecurity, and enterprise platforms. As high-margin mandates grow, GCCs are becoming a cornerstone of Indias staffing ecosystem and a key driver of future employment models.
Policy and Reform-Driven Workforce Formalisation	Indias staffing landscape is undergoing a structural transformation, driven by regulatory reforms, employment-linked incentives, and increasing formalisation of the workforce. This trend is reinforced by rising GST collections, up from USD 103 Bn in FY 2017-18 to USD 241 Bn in FY 2023-24, reflecting broader economic formalisation. The shift from agriculture to industry, along with supportive government policies, is expanding opportunities for organised staffing across key sectors.
Technology- Specific and Platform- Led Staffing Solutions	The accelerating pace of digital transformation is reshaping workforce needs, with rising demand for specialised talent in areas like AI/ML, cloud engineering, cybersecurity, data analytics, UI/UX, and Generative AI. To address these evolving requirements, organisations are increasingly adopting Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP) models that offer scalable, compliant, and efficient hiring. At the same time, digital platforms such as HamaraJobs, TaskMo, and HamaraHR are transforming recruitment through AI-powered matching, end-to-end visibility, and hyperlocal access. These shifts are positioning tech-enabled staffing firms as key partners in delivering agile, future-ready workforce solutions.

Growth Opportunities:

Indias staffing industry is undergoing a structural shift driven by digital disruption, sectoral diversification, and evolving workforce expectations.

Business Overview

Quess Corp is Indias largest staffing solutions company, with operations across 9 countries and a network of 30+ offices. With a workforce of over 459,000 associates and ~1,700 clients, Quess plays a pivotal role in driving formal employment, skill development, and workforce agility at scale. The company has created over 2.5 Mn jobs since 2016, underscoring its mission to build a future-ready workforce ecosystem. In the year 2025, Quess made history by joining the World Employment Confederation as a Regional Corporate Member, becoming the first Indian company to join this global HR industry body.

In FY 2024-25, Quess group successfully completed its strategic three-way demerger, realigning its structure to enhance management focus, sharpen capital allocation, and unlock long-term value. Post-demerger, Quess Corp operates through four focussed business segments:

1. General Staffing:

Quesss largest business segment, General Staffing, provides end-to-end workforce solutions for industries such as BFSI, retail, manufacturing, telecom, logistics, and construction.

2. Professional Staffing:

This segment provides agile talent solutions for high-skill roles in digital, IT, and white-collar domains, including recruitment, project staffing, and GCC services across areas like cloud, cybersecurity, and enterprise platforms.

3. Overseas Staffing:

Overseas Staffing connects businesses with skilled talent across Singapore, APAC, the Middle East, and the USA, enabling seamless workforce deployment across industries through regional expertise and cross-border mobility.

4. Digital Platforms:

Quesss digital platforms, HamaraJobs, HamaraHR, Hamara Academy, Hamara Benefits, and TaskMo, enable tech-driven solutions for blue-collar hiring, gig deployment, HRMS, and workforce engagement, digitising the employment lifecycle at scale.

Discussion on Financial Performance Note

The financial results presented here mark a significant milestone, being the first set of disclosures post the completion of the demerger, effective April 1, 2024. In accordance with applicable accounting standards and to ensure meaningful comparability, prior period figures have been restated to ensure comparability and consistency. These numbers, therefore, provide a more accurate representation of the Companys performance and its strategic direction moving forward.

Profit and Loss account summary:

Component	FY 2024-25	FY 2023-24	YoY Change
Revenue	1,49,672	1,36,951	? 9%
EBITDA	2,623	2,343	? 12%
EBITDA Margin (%)	1.8%	1.7%	? 4 bps
Depreciation & Amortisation	412	581	? 29%
Interest	386	572	? 32%
Other Income	236	148	? 59%
Exceptional Items	(1,643)	(10)	-
Profit Before Tax (PBT)	418	1,329	? 69%
Tax	(41)	(25)	-
PAT (Reported)	459	1,354	? 66%
PAT Margin (%)	0.3%	1.0%	T 68 bps
Adjusted PAT	2,102	1,364	? 54%
Adjusted PAT Margin(%)	1.4%	1.0%	? 41 bps
EPS (Reported) (?)	3.1	9.3	? 67%
Adjusted EPS (?)	14.1	9.1	? 54%

Adjusted PAT and Adjusted EPS exclude exceptional items for the year. Exceptional items for the year amount to 1,643 Mn attributable to expected credit loss for discontinued projects, goodwill impairment, and demerger-related expenses. This does not involve any cash outflows and has no impact on the companys operational liquidity.

Revenue

The Company reported revenues of 1,49,672 Mn, registering a 9% year-on-year growth. This growth was primarily driven by consistent headcount addition and sector-specific expansion in General staffing while the push towards GCCs (Global Capacity Centre) delivered positive results in the Professional staffing segment. Despite macro headwinds and an NBFC client ramp-down in the latter half of the year, the general staffing business showed operational resilience and delivered healthy revenue growth. The overseas business also delivered robust performance despite visa-related issues in Singapore, as APAC and the Middle East delivered strong growth. The digital platform continued its user base expansion.

Expenses

This year marks a period of strategic transition for Quess as it navigates through a demerger. We have made investments towards sales engine and leadership bandwidth to drive future growth across business segments. Employee expenses have risen accordingly (93.9% of revenue vs. 91.4% of revenue last year), reflecting our commitment to strengthening internal capabilities and building a future-ready organisation amid a shifting external environment.

EBITDA

EBITDA rose to 2,623 Mn, marking a 12% YoY increase, with margins improving slightly by 4 basis points to 1.8%. The margin range reflects a focus on higher contributions from Professional staffing and Overseas business while revenue-led EBITDA contributions from General Staffing. Internally, Quess is committed towards disciplined cost control, operating leverage, and an increased focus on portfolio optimisation.

FY 2024-25 Financial Highlights Revenue

Segment	FY 2024-25	FY 2023-24	YoY
General Staffing	129,946	117,464	? 11%
Professional Staffing	8,254	7,415	? 11%
Overseas Business	11,422	12,010	? (5%)
Digital Platforms	50	61	? (18%)
Total	14,967	13,695	? 9%
Operating Margin
Segment	FY 2024-25	FY 2023-24	YoY
General Staffing	1,936	1,847	? 5%
Professional Staffing	772	545	? 42%
Overseas Business	634	642	? (1%)
Digital Platforms	(55)	(149)	? 63%
Total	329	289	? 14%

Key performance highlights:

General Staffing:

In FY2024-25, General Staffing continued to be the largest contributor to the revenue, with a turnover of 129,946 Mn, marking an 11% YoY growth

Operational EBITDA for the year stood at 1,936 Mn, up from 1,847 Mn in FY 2023-24, growing by 5% over the previous year

During the year, 323 new contracts were signed, including 80 in Q4

Gross hiring additions for the year stood at approximately 3,88,000 with strong momentum in retail, logistics, telecom, and manufacturing

Professional Staffing:

ProfessionalStaffing delivered robust growth,with revenue rising to 8,254 Mn from 7,415 Mn in FY 2023-24 and operational EBITDA expanding 42% YoY to 772 Mn from 545 Mn in FY 2023-24

The segment sharpened its focus on high-margin mandates, with 80% of 1,300+ open positions in niche areas like cloud, cybersecurity, and data analytics

GCCs contributed 70% of revenue, and 45 new GCC clients were onboarded during the year, reinforcing Quesss leadership in tech-enabled staffing

The EBITDA margin remained healthy at over 9%, supported by AI-led productivity initiatives and GCC-focussed strategies

Overseas staffing:

The Overseas Business segment recorded a revenue of 1 1,422 Mn in FY 2024-25, and EBITDA of 634 Mn

The segment showed resilience through diversified geographical operations, with the Middle East achieving its highest-ever revenue and EBITDA

Growth was also supported by new business lines (IT, non-IT, and gig-based services) and strong performance in Malaysia and the Philippines, despite ongoing headwinds in Singapore

The Middle East led the growth in FY 2024-25, achieving its highest-ever quarterly revenue and headcount of 2,000+ associates.

Singapore remained challenging due to the COMPASS regulatory framework, which tightened work pass issuance for foreign workers. The business offset some of this pressure by pivoting to General Staffing mandates.

Malaysia witnessed a turnaround in IT Staffing, supported by robust government demand, while the Philippines continued to deliver stable growth across IT Flexi, Perm, and Gig-based services.

These diversified drivers have enabled the segment to stay resilient despite uneven macro conditions across APAC.

Digital Platforms:

The Digital Platforms segment remained in the investment phase with FY 2024-25 revenue of 50 Mn, and an operating EBITDA loss of 55 Mn from 149 Mn in FY 2023-24, an improvement of 63% compared to the previous year

Platform adoption accelerated, with HamaraJobs and HamaraHR growing their user base to 6.9 Mn and over 500,000, respectively

The segment generated over 23,000 leads in Q4, highlighting the rising potential of tech-led recruitment and workforce solutions

Balance Sheet summary-

Component	FY 2024-25	FY 2023-24	Transfer pursuant to Scheme of Arrangement	Revised FY 2023-24	YoY Change
Total Assets	28,118	62,550	(33,396)	29,154	(3.55%)
Non-Current Assets	9,156	26,746	(16,486)	10,260	(10.76%)
Current Assets	18,962	35,804	(16,910)	18,894	0.36%
Cash & Cash Equivalents	2,491	5,201	(3,365)	1,836	35.68%
Trade Receivables (Billed + Unbilled)	15,295	27,721	(11,721)	16,000	(4.41%)
Total Equity	10,860	29,646	(17,760)	11,886	(8.63%)
Gross Debt	121	3,678	(2,336)	1,342	(90.98%)
Net Cash Position	2,550	2,320	(1,740	580	339.66%
Total Liabilities	17,258	32,904	(15,636)	17,268	(0.06%)
DSO (Days)	37	53		53	? 16 days

Cash flow metrics:

Ratios	FY 2024-25	FY 2023-24
DSO Days	37 days	53 days
Interest Coverage Ratio	6.70*	6*
Current Ratio	1.34*	1.36*
Debt-Equity Ratio	0.01*	0.12*
EBITDA Margin	1.80%	3.63%
Net Profit Margin	0.30%	1.47%
(Reported)
Adjusted Net Profit	1.40%	-
Margin
Return on Net Worth	19%	9.85%
(Adj. ROE)
Debtor Turnover Ratio	14.30*	12.63*
Working Capital	24.10*	22.58*
Turnover Ratio
EBITDA to Operating	151%	-
Cash Flow
Net Cash Position	? 2,550 Mn	? 580 Mn

On an adjusted basis, Quess has shown improved profitability and cash flow generation, with EBITDA to Operating Cash Flow conversion at 151% and Adjusted PAT growth of 54% YoY.

Outlook

As we move into FY 2025-26, the operating environment is being shaped by macroeconomic trends shifting workforce dynamics, technological disruptions, and evolving regulatory frameworks. While short-term growth may have an overhang of a NBFC client ramp-down, long-term fundamentals across our core segments remain strong.

In General Staffing, formalisation of employment, digitalisation of HR compliance, and employment-linked government incentives continue to be strong tailwinds.

The long-term opportunity for organised workforce solutions remains robust, even as some industries witness temporary slowdown

Professional Staffing, particularly in the IT sector, faces subdued demand due to muted forecasts by large IT clients and global policy uncertainty. However, growing GCC investments, niche tech hiring, and tier-2 city expansion are expected to stabilise demand

Our Overseas Business offers a diversified growth engine. The Middle East is expected to provide stable volumes, while Southeast Asia - especially Malaysia and the Philippines - presents selective high-growth opportunities. Singapore remains a challenging but strategic market requiring careful navigation of regulatory frameworks like COMPASS

Our Digital Platforms business, comprising the Hamara suite (Jobs, HR, Academy and Benefits) and TaskMo, is expected to gain further momentum in FY 2025-26 as employers increasingly adopt tech-led hiring and workforce management solutions. The continued rise of gig work, demand for hyperlocal hiring, and growing need for digitised HRMS and benefits delivery among SMEs present strong structural tailwinds. As user adoption scales and monetisation models mature, the platforms are well-positioned to transition from investment phase to growth acceleration, particularly in underserved blue- and grey-collar segments

Quess is now focussed on delivering double-digit revenue growth and non-linear EBITDA / profitability growth post the demerger. Our diversified presence, scalable platform, and focus on capability-led execution position us well to navigate short-term uncertainty and capitalise on emerging workforce trends globally.

Risks and mitigation

Enterprise Risk Management (ERM)

Quess Corp uses a rigorous Enterprise Risk Management (ERM) framework to identify, assess, and manage internal and external risks that could affect our operations, financial performance, and strategic goals. Our ERM methodology follows industry best practices and regulatory standards, providing business resilience. Our risk-aware culture helps our teams foresee problems, respond to risks, and seize opportunities.

During the year, we continued to enhance our risk management processes by leveraging technology, strengthening internal controls, and refining our risk assessment methodologies. Our Board of Directors and Risk Management Committee play a pivotal role in overseeing risk governance, ensuring that our risk appetite aligns with our corporate vision and stakeholder expectations.

Salient features of our ERM framework

Our Risk Management Policy approved by Board establishes a structured and disciplined approach to risk management, supporting strategic decision-making. The Risk Management Committee, comprising Board members and C-suite executives, reviews and monitors progress on mitigation plans, offering necessary guidance and direction

The Corporate Risk Management Team actively collaborates with independent Internal Auditors to identify areas where processes and internal controls require enhancement for improved risk management. Audit findings, along with management action plans, are discussed and reviewed by the Audit Committee of the Board

Business-level SOPs and policies, along with centrally issued policies, shape the internal control framework and strengthen our comprehensive risk management processes

Key Business Risks:

Internal Controls and Governance

The Company has instituted a strong and structured Internal Control System (ICS), aligned with the requirements of the Companies Act, 2013, and calibrated to its business scale and complexity. These controls are embedded in operational workflows through well-defined policies and procedures approved by the Board, ensuring regulatory compliance, asset protection, transaction integrity, and accurate financial reporting.

The internal audit function is carried out by M/s. Grant Thornton Bharat LLP, under the direction and oversight of the Audit Committee, to whom the Internal Auditor reports independently. Regular audits are conducted across business functions to assess control effectiveness and compliance with statutory and internal norms. Audit observations and action plans are reviewed by management and presented to the Audit Committee on a quarterly basis.

The Audit Committee, comprising 6 (six) directors (including four independent directors), closely monitors the implementation of recommendations and ensures the effectiveness of internal controls and risk management systems. In parallel, the statutory audit conducted by M/s. Deloitte Haskins and Sells LLP includes an evaluation of internal financial controls over financial reporting, in accordance with Section 143 of the Companies Act, 2013, and SEBI Listing Regulations.

The Company continues to enhance its control environment by prioritising automated and preventive controls over manual processes. A robust ERP system and other digital platforms serve as the technological backbone of its internal controls, supporting real-time monitoring, process discipline, and data accuracy. These systems are continuously updated to address evolving business needs, strengthen governance, and reinforce financial integrity.

At Quess, we are profoundly committed to the principles of Environmental, Social, and Governance (ESG), which are deeply ingrained in our operations. This is a reflection of our principle that what is beneficial for society is beneficial for business. The Companys dedication to responsible growth and stakeholder well-being was further emphasized by its consistent progress across all ESG pillars during FY 2024-25.

1. Social Responsibility and Workforce Diversity:

Quess remains a people-first organisation, with over 74,000 women employees, who account for 50% of the primary workforce

For the sixth year in a row, the organisation was recertified as a Great Place to Work and named one of the Best Workplaces in Health & Wellness

Quess also facilitated broad-based employment access through its proprietary platform HamaraJobs, which registered over 44,500 new candidates and fulfilled 99% of the 4,000+ monthly job postings

2. Education and Community Development:

Quess, as a responsible corporate citizen, adopted 75 government schools, which benefited more than 17,000 students

The organisation rendered life skills, computer literacy, and health screenings to thousands of pupils, in addition to providing 72,000+ notebooks and 1,000+ school kits

Foundational learning programmes were implemented to assist early learners, and 99 scholarships were granted to deserving students

3. Environmental Stewardship:

In fiscal year 2025, Quess made significant progress in the area of environmental sustainability. It successfully obtained ISO 14001 certification, planted over 500 trees, and responsibly disposed of over 3,500 kgs of e-waste

The Company maintained its commitment to digital-first workflows in order to optimise operational efficiency and minimise paper consumption. Responsible sourcing and recycling protocols were implemented to reinforce waste management practices

4. Governance and Ethical Conduct:

Quess maintains a zero-tolerance policy toward unethical practices, which is bolstered by a robust governance framework. The Company is certified under ISO 9001 (Quality Management), ISO 27001 (Information Security), and ISO 37001 (Anti-bribery)

Data protection and system resilience are supervised by a Cyber Security Council, which is chaired by C-suite executives. The Company did not receive any complaints regarding, conflicts of interest, or anti-bribery violations in FY 2024-25

Human Resource

The Company acknowledges the value of its human resource and follows a strong human resources driven approach with modern workplace values. The Company encourages a supportive work environment with defined and transparent HR process and evaluations. Our workforce diversity stands out, with over 74,000 women employees, representing 50% of the core workforce and 16% of our associate base, underscoring our deep commitment to equality and inclusion. The Company has created safe and healthy workplace recognising that it is fundamental to employee engagement and productivity. In recognition of our sustained efforts in building a high-trust, high-performance culture, Quess was honoured with the #32 Great Place to Work Certification for the sixth consecutive year, reinforcing our status as an employer of choice in the workforce solutions industry. Our HR policies promote a culture of competitiveness, work-life balance, and collaboration. Through regular training and capability-building programmes, we strive to equip our employees with future-ready skills

while enhancing motivation and performance. A skilled, diverse, and purpose-driven workforce remains central to our long-term growth and organisational resilience. As of March 31,2025, the Company had a permanent workforce of 2,556 employees.

Cautionary Statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be ‘forward-looking statements within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply, and price conditions in the domestic & overseas markets in which the Company operates, changes in Government regulations, tax laws & other statutes, and other incidental factors. The Company assumes no responsibility in respect of forward-looking statements, which may be amended or modified in the future.