TeamLease shares soar 11% today; Here's what could have driven the rally

TeamLease shares rallied over 11 per cent after the government brought all four labour codes into effect, starting Friday

Shares of TeamLease Services Ltd. rallied over 11 per cent on Monday after the government announced the biggest overhaul of India's labour framework in decades by implementing the new labour codes. 

 

The company's stock rose as much as 11.1 per cent during the day to ₹1,842 per share, the steepest intraday gain since August 1 this year. The TeamLease Services stock pared gains to trade 10 per cent higher at ₹1,824 apiece, compared to a 0.11 per cent advance in Nifty 50 as of 11:22 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 176 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 37 per cent this year, compared to a 10.3 per cent advance in the benchmark Nifty 50. TeamLease has a total market capitalisation of ₹3,054.54 crore. 

India enforces four labour codes

On Friday, the government announced that all four Labour Codes, the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020), will come into force from November 21.

 

According to the Press Information Bureau (PIB), the move consolidates 29 central labour laws into a simplified system aimed at improving worker welfare, reducing compliance burden and aligning India’s labour ecosystem with global standards. The benefits of labour reforms go across key sectors, from gig and platform workers to beedi and cigar workers. 

 

Most of India’s labour laws were created between the 1930s and 1950s, when economic structures and work patterns were very different. Over the years, these fragmented laws led to confusion, complex compliance requirements and outdated protections, a PIB press release said.

TeamLease Q2 results

The recruitment firm reported a consolidated profit after tax (PAT) of ₹28 crore during the second quarter of the financial year 2025-26 (Q2FY26), up 12 per cent from ₹25 crore in the same quarter last year. Sequentially, profit increased by 11 per cent.

 

The firm's operating revenue stood at ₹3,032 crore in Q2FY26, up 8 per cent year-on-year (Y-o-Y), and 5 per cent sequentially. It reported an earnings before interest, taxes, depreciation, and amortisation (Ebitda) of ₹38 crore for the quarter, up 15 per cent Y-o-Y, with Ebitda margin improving slightly to 1.3 per cent.

 

The company added 37 new clients under its general staffing business, with about 23 per cent of the quarter’s net headcount coming from new client acquisitions.