Synopsis:
The shares of this employment services company are in focus today as they jumped around 13% following the announcement of changes in labour laws.
This company, which provides employment-related services and solutions for staffing, recruitment, training, payroll processing, and regulatory compliance, had its shares in the limelight today as they skyrocketed following the news of changes in national labour laws.
With the market cap of Rs 3,053 crore, the shares of Team Lease Services Ltd soared about 13 per cent and made a high of Rs 1,873 from its previous day’s closing price of Rs 1,659.70. The shares are trading at a PE of 26, whereas its industry PE is 22.6.
What does the company do?
TeamLease provides a wide range of workforce solutions that make hiring and managing people easier for companies. From general and specialised staffing to helping businesses with permanent hiring, apprenticeships, and training, the company supports every stage of building a capable workforce. Its learning programmes and Skill University also help students and young professionals gain practical, job-ready skills.
Alongside this, TeamLease simplifies the complicated world of labour compliance through its regulatory and HRTech services. It manages payroll, statutory filings, and digital records, reducing the compliance burden for companies. With a strong nationwide presence and lakhs of associates, TeamLease acts as a vital link between employers and talent across India.
How will the new labour laws benefit the company?
The four new labour codes, Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health & Working Conditions Code, make India’s labour system more structured but also more complex for employers. Because companies must now follow new rules on wages, PF/ESI, social security for gig workers, fixed-term employment, digital registers, and stricter compliance timelines, many businesses will increasingly rely on TeamLease to manage these responsibilities.
The Code on Wages introduces a uniform definition of wages, affecting salary structuring, overtime, and benefits, pushing companies to outsource payroll and compliance. The Social Security Code expands PF, ESI, and social benefits to gig, platform, and fixed-term workers, creating a massive documentation and compliance workload that TeamLease is equipped to handle. The Industrial Relations Code makes fixed-term jobs easier, driving demand for contract staffing, TeamLease’s largest business. Meanwhile, the OSH Code requires digital safety records and contractor oversight, again increasing reliance on outsourced HR and compliance partners.
Together, these laws create a larger, more formal, and more regulated workforce environment, directly boosting demand for TeamLease’s staffing, compliance, and HRTech services.
Financials and others
The revenue from operations for the company is Rs 3,032 crore in Q2 FY26 versus Rs 2,797 crore in Q2 FY25, which is an increase of about 8 percent on a YoY basis. Similarly, there has been an increase in net profit of about 12 percent when we compare the Q2 FY25 profit of Rs 25 crore with the Q2 FY26 profit of Rs 28 crore.
TeamLease’s strategy is built around four simple but powerful ideas: growing steadily, improving profits year after year, using capital wisely, and maintaining strong governance. This balanced approach helps the company expand without losing financial discipline while continuing to build trust with clients and partners.
TeamLease also has a wide physical presence, with offices across major Indian cities like Bengaluru, Mumbai, Delhi, Hyderabad, Chennai, and Kolkata, along with international locations such as Dubai and Singapore. This reach allows the company to stay close to its clients and support them wherever they operate.
Written by Leon Mendonca
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