Quess Corp Declares Special Interim Dividend of Rs. 3/- Per Share for FY 2025-26, Outlines TDS Framework for Shareholders

Quess Corp Limited's Board of Directors, at its meeting held on May 04, 2026, declared a special interim dividend of Rs. 3/- per equity share at the rate of 30% of the face value of Rs. 10/- each for the Financial Year 2025-26. The record date for determining the entitlement of shareholders was fixed as Friday, May 08, 2026. The dividend is scheduled to be paid on or before May 21, 2026, or within 30 days from the date of declaration, in accordance with the provisions of the Companies Act, 2013. The payment will be made to registered shareholders whose names appear on the register of members or in the records of the Depository as beneficial owners on the Record Date.

Dividend Details at a Glance

The key parameters of the special interim dividend are summarised below:

Parameter: Details Dividend Type: Special Interim Dividend Dividend Per Share: Rs. 3/- Rate: 30% of face value Face Value: Rs. 10/- per equity share Financial Year: 2025-26 Board Declaration Date: May 04, 2026 Record Date: Friday, May 08, 2026 Payment Deadline: On or before May 21, 2026

TDS Framework Under the Income Tax Act, 2025

Pursuant to the provisions of the Income Tax Act, 2025, dividends paid or distributed by a company are taxable in the hands of shareholders. Accordingly, Quess Corp is required to deduct tax at source (TDS) at the time of making dividend payment at prescribed rates. The applicable TDS rates vary depending on the residential status of the shareholder and the documents submitted and accepted by the company.

TDS Rates for Resident Shareholders

The following table outlines the TDS rates and documentation requirements for resident shareholders:

Category of Shareholder: Tax Deduction Rate Documents / Exemption Applicability Any resident shareholder (With PAN): 10% — as per Section 393(4) [Table: S.No.10] of the Act Update/verify PAN and residential status with depositories or RTA (MUFG Intime India Private Limited). PAN must be linked with Aadhaar as per Section 262(9) read with Rule 162 of the Income Tax Rules, 2026; inoperative PAN attracts higher TDS under Section 397(2). Resident Individual — aggregate dividend income not exceeding INR 10,000/- during TY 2026-27: NIL No deduction applicable Shareholder exempted via circular/notification: NIL Attested copy of PAN and documentary evidence of exemption required Submitting Form 121: NIL Eligible shareholder providing Form 121 (Annexure 1) on fulfilment of prescribed conditions; PAN is mandatory Certificate under Section 395(1) of the Act: Rate provided in the Certificate Self-attested copy of Lower/NIL withholding tax certificate from Income Tax authorities Insurance Companies (Public & Other): NIL Self-declaration of full beneficial interest, self-attested PAN card copy, and registration certificate (Annexure 2) Corporation exempt from income tax under a Central Act: NIL Documentary evidence of coverage under Section 196 of the Act (Annexure 2) Mutual Funds: NIL Self-declaration of specification in Schedule VII (Table: Sl. No. 20 or 21) of Section 11 of the Act, self-attested PAN card copy, and registration certificate (Annexure 2) Alternative Investment Fund (AIF) established in India: NIL Documentary evidence under Notification No. 51/2015 dated 25 June 2015, or self-declaration of income exemption under Schedule V [Table: Sl. No. 1] of Section 11 of the Act, as Category I or II AIF under SEBI regulations, with self-attested PAN card copy and registration certificate (Annexure 2) Recognized Provident Fund: NIL Self-attested copy of valid order from Commissioner under Rule 3 of Part A of Schedule XI to the Act, or valid documentary evidence of establishment under the Employees Provident Funds Act, 1952 (Annexure 2) Approved Superannuation Fund / Approved Gratuity Fund / National Pension Scheme Trust: NIL Self-attested copy of valid approval under Rule 2 of Part B or Part C of Schedule XI to the Act, as applicable (Annexure 2) Resident shareholder without PAN / Invalid PAN / Inoperative PAN: 20% — as per Section 397(2) of the Act Higher rate applies in absence of valid PAN

Key notes for resident shareholders:

Recording a valid Permanent Account Number (PAN) for the registered Folio/DP ID-Client ID is mandatory. In the absence of a valid PAN or in case of an inoperative PAN, tax will be deducted at a higher rate of 20% as per Section 397(2) of the Act.

Shareholders holding shares under multiple accounts under different status/category with a single PAN should note that the higher applicable tax rate will be considered on their entire holding across different accounts.

TDS Rates for Non-Resident Shareholders

The following table outlines the TDS rates and documentation requirements for non-resident shareholders:

Category of Shareholder: Tax Deduction Rate Documents / Exemption Applicability Any non-resident shareholder (other than FIIs/FPIs): 20% (plus applicable surcharge and cess) — as per Section 393(2) [Table Sl. No 17] read with Section 207(1) [Table Sl. No. 1] of the Act, subject to applicable Treaty rate Self-attested PAN card copy; Tax Residency Certificate (TRC) valid for TY 2026-27 or calendar year 2026; electronically furnished Form 41 and its acknowledgement from the Income Tax portal; self-declaration confirming no Permanent Establishment in India and eligibility for Tax Treaty benefit (Annexure 3); declaration on applicability of treaty provisions including GAAR and MLI provisions (Annexure 4) FIIs / FPIs: 20% (plus applicable surcharge and cess) — as per Section 393(2) [Table Sl. No 17] read with Section 207(1) [Table Sl. No. 1] of the Act, subject to applicable Treaty rate All documents as stated above for treaty relief; update/verify PAN and legal entity status with depositories or RTA; declaration on investment route (FDI or FPI); self-attested copy of SEBI Registration certificate Certificate under Section 395(1) of the Act: Rate provided in the Order Self-attested copy of Lower/NIL withholding tax certificate from Income Tax authorities

Key notes for non-resident shareholders:

Shareholders holding shares under multiple accounts under different status/category with a single PAN should note that the higher applicable tax rate will be considered on their entire holding across different accounts.

The company is not obligated to apply beneficial tax treaty rates, read with the MLI provision, at the time of tax deduction. The application of the beneficial treaty rate shall depend upon the completeness and satisfactory review of documents submitted by non-resident shareholders.

Document Submission Deadline and Process

All required documents, as detailed in Tables 1 and 2, must be uploaded on the RTA portal at https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html on or before Sunday, May 10, 2026, 05:00 P.M. (IST). No communication or documents received after this deadline will be considered for tax determination or deduction. Email communications to the RTA or the company in this regard will not be accepted. Shareholders are advised to upload documents at the earliest to enable the company to determine the appropriate TDS rates.

Bank Account Updation and KYC Compliance

Shareholders are requested to ensure that their bank account details in their respective demat accounts are updated to enable timely credit of dividends. As per the SEBI Master Circular dated February 06, 2026, shareholders holding shares in physical form whose folios are not updated with KYC details — including PAN, contact details, mobile number, bank account details, and signature — shall be eligible to receive dividends only in electronic mode, subject to updation of the said details. The company will arrange to email a soft copy of the TDS certificate to shareholders' registered email IDs in due course, post payment of the dividend. Shareholders will also be able to view the credit of TDS in Form 26AS, downloadable from their e-filing account at https://www.incometax.gov.in/iec/foportal . Shareholders are advised to consult their own tax advisors for provisions applicable to their specific circumstances.

Quess Corp delivered steady financial performance in Q4 FY26 and the full year FY26, reporting revenue growth alongside strong margin expansion and improved earnings quality. The company's earnings call highlighted disciplined execution across its staffing and international segments, a structural shift towards higher-margin businesses, and a robust balance sheet — culminating in a total dividend of ₹6 per share declared by the Board.

Q4 FY26 and Full-Year FY26 Financial Highlights

For Q4 FY26, consolidated revenues stood at ₹3,892 crore, reflecting 6% year-on-year growth. EBITDA came in at ₹86 crore, up 28% year-on-year and 8% sequentially, with EBITDA margins improving to 2.2% — an expansion of 37 basis points year-on-year. Reported PAT stood at ₹64 crore, reflecting a 167% year-on-year increase, with EPS of ₹4.3 per share. For the full year FY26, consolidated revenues stood at ₹15,305 crore, reflecting 2% year-on-year growth. EBITDA increased to ₹312 crore, delivering 19% year-on-year growth, with margins expanding to 2%. Adjusted PAT for the year stood at ₹250 crore, up 10% year-on-year, with adjusted EPS of ₹15.4 per share. Return on equity remained strong at 20%.

Metric: Q4 FY26 FY26 Revenue: ₹3,892 crore (+6% YoY) ₹15,305 crore (+2% YoY) EBITDA: ₹86 crore (+28% YoY) ₹312 crore (+19% YoY) EBITDA Margin: 2.20% 2% Reported PAT: ₹64 crore (+167% YoY) — Adjusted PAT: — ₹250 crore (+10% YoY) EPS: ₹4.3 per share ₹15.4 per share Return on Equity: — 20% EBITDA-to-OCF Conversion: 80% 80%

The Board approved a final dividend of ₹3 per share and a special dividend of ₹3 per share to mark the 10th anniversary of the company's IPO, bringing the total dividend to ₹6 per share.

Segment-Wise Performance

General Staffing

General Staffing remains the largest segment, contributing 86% of total FY26 revenue. For Q4 FY26, revenues stood at ₹3,328 crore, up 6% year-on-year, while segment EBITDA stood at ₹52 crore, reflecting 21% year-on-year growth. For the full year, revenues stood at ₹13,176 crore with EBITDA at ₹189 crore. The segment added 59 new contracts in Q4, taking total FY26 new contract additions to 281. DSO remained tightly controlled at 24 days, including unbilled revenue, with AR DSO at 15 days. Collect & Pay mix remained strong at 76%. The segment reported an EBITDA margin of 1.5%. During FY26, approximately 26,000 net headcount additions were made in the Staffing Solutions business, though discontinued projects resulted in a loss of 7,000 headcount during the year. Management noted that the discontinued project had a revenue impact of approximately ₹200 crore, or roughly 1.3% of revenue.

Professional Staffing

Professional Staffing delivered strong margin-led growth. For Q4 FY26, revenues stood at ₹232 crore, with EBITDA of ₹30 crore, up 47% year-on-year, and margins at 12%. For the full year, revenue grew to ₹930 crore, up 13% year-on-year, while EBITDA increased to ₹111 crore, up 43% year-on-year. GCC-led engagements accounted for over 70% of headcount deployment. Management indicated that Professional Staffing margins are expected to remain in the 11%–12% range in the medium term.

Overseas Business

The Overseas business delivered consistent growth with improving margins. For Q4 FY26, revenues stood at ₹332 crore, up 16% year-on-year, with EBITDA of ₹21 crore, up 18% year-on-year. For the full year, revenue stood at ₹1,197 crore, up 5% year-on-year, with EBITDA of ₹77 crore, up 21% year-on-year. Blended EBITDA margins remained in the range of 6%–7%.

Segment: FY26 Revenue FY26 EBITDA YoY EBITDA Growth General Staffing: ₹13,176 crore ₹189 crore Stable Professional Staffing: ₹930 crore ₹111 crore +43% Overseas Business: ₹1,197 crore ₹77 crore +21%

Key international highlights included Middle East closing FY26 with 11% EBITDA margin, posting revenue and EBITDA growth of 27% and 40% respectively. Malaysia delivered revenue growth of 83% year-on-year, scaling to 900 headcount with an EBITDA margin of 4.3%. Philippines posted 49% revenue growth at a 10% EBITDA margin, crossing 700 headcount. Quess Singapore's General Staffing added 68 new contracts and over 491 local headcounts, taking total headcount in that geography to over 1,026. The company added 125 new logos in the Overseas business during the year.

Balance Sheet and Capital Allocation

Quess Corp's balance sheet remained strong at the close of FY26, with a net cash position of ₹271 crore and zero gross debt. Operating cash flow conversion remained robust at 80% of EBITDA, reflecting disciplined working capital management. The company ended the year with a total headcount of approximately 4,78,594 associates across its staffing platforms.

Margin Targets and Growth Outlook

Management outlined a phased approach to margin expansion and revenue growth. In the near term, the company targets sustaining a margin above 2%, with a medium-term goal of 2.4% over the next three years. For the Professional Staffing segment, margins are expected to remain in the 11%–12% range. The Overseas business is targeted to sustain margins above 6%. For the staffing business, management indicated expectations of 10%–11% headcount growth and 12%–13% revenue growth. The effective tax rate is expected to remain in the 7%–10% range over the next three years.

Parameter: Target Near-Term Overall Margin: Above 2% Three-Year Overall Margin Target: 2.4% Staffing Headcount Growth: 10%–11% Staffing Revenue Growth: 12%–13% Professional Staffing Margins: 11%–12% International Operations Margins: Above 6% Effective Tax Rate (Next Three Years): 7%–10%

High-margin businesses — Professional Staffing and Overseas — now contribute approximately 50% of total operating profitability, reflecting a structural shift in the company's business mix. Quess Corp also noted it has been certified as a "Great Place to Work" for the 7th consecutive year, with recognition across India, Singapore, and the Middle East, and received the "LinkedIn Talent Award 2025" for "AI Pioneer."

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