Quess Corp Reports Q2026 Results: Consolidated and Standalone Profits Rise Amid Litigation and Labour Code Accounting Adjustments

Quess Corp Reports Q2026 Results: Consolidated and Standalone Profits Rise Amid Litigation and Labour Code Accounting Adjustments​

Bengaluru — Quess Corp Limited announced its unaudited consolidated and standalone financial results for the quarter ended June 30, 2026. The company reported strong performance across both levels of reporting, while management addressed pending tax disputes and accounted for the implementation of New Labour Codes in its operations.

The Board of Directors approved the results following the board meeting held on July 29, 2026. Both sets of results have been reviewed by statutory auditors, which provided a qualified conclusion based on the interim nature of the financial information.

Financial Highlights (Q ended June 30, 2026)​

The company recorded substantial income and profit across both consolidated and standalone statements for the quarter.

Operational and Contingency Updates​

The company detailed significant contingent liabilities related to provident fund demands from a regional authority concerning the period April 2018 to March 2019. Quess Corp has assessed these matters, resulting in a provision of INR 3,879.94 million for demands, including interest. The company noted that it had filed an appeal before the Central Government Industrial Tribunal (CGIT) challenging the EPFO order and received an Order allowing complete waiver from pre-deposit, with the matter scheduled for hearing on August 20, 2026.

In terms of income tax matters, the results reflect ongoing disputes regarding deductions under section 80JJAA of the Income Tax Act and depreciation on goodwill. The company stated that it maintains its stand, supported by external legal and tax experts, that these deductions will be sustained upon ultimate resolution by the Income Tax Authority. For the quarter ended June 30, 2026, the company claimed a section 80JJAA deduction of INR 705.63 million.

Labour Code Implementation and Corporate Governance​

The results incorporated the impact of the four new Labour Codes, which replaced existing labour laws as notified by the Government of India on November 21, 2025. For billable employees, Quess Corp has accounted for the incremental impact arising from wage restructuring or revised arrangements with customers under "Employee Benefit Expense." Since these costs are contractually recoverable, they are reflected with a corresponding credit to revenue and do not affect the profit for the period.

Furthermore, the company incorporated the Quess Corp Limited Employees Welfare Trust on April 2, 2026, establishing it to administer the Quess Stock Ownership Plan 2026 (QSOP 2026) and future employee benefit plans.

QUESS Stock Price Movement​

Quess Corp Limited shares edged higher today, settling at ₹307.40 after gaining ₹4.25 or 1.40%.The stock experienced a steady trading day with an intraday range defined by a low of ₹303.15 and a high of ₹309.70 on a volume of 363,773 shares.