Nuvama Institutional Equities noted that Quess Corp Ltd reported a decent performance in Q4 FY26 with revenue at Rs 3,890 crore, although remaining below the brokerage's estimate. EBITDA margins grew 19 basis points (bps) QoQ to 2.2 per cent, above its expectations, while adjusted PAT was Rs 63.5 crore, again above Nuvama's estimate of Rs 56.4 crore.

It cited that the company's professional Staffing is likely to sustain growth momentum along with profitability.

"Furthermore, General Staffing shall report a pickup in growth, supported by BFSI recovery. The higher-margin Professional and Overseas businesses shall support overall margin. We are tweaking FY27E/28E EPS by +2.3 per cent/+1.4 per cent," Nuvama added.

"We value Quess using DCF, deriving a TP (target price) of Rs 310 (unchanged); maintain 'Buy'. At CMP, the stock trades at ~12x PE on FY28E," the brokerage also stated.

"Overseas business revenue expanded +14.4 per cent QoQ/+15.8 per cent YoY to Rs 330 crore. Overseas revenue growth was supported by organic growth, new customer additions, favourable currency movement and a one-time revenue pass-through," Nuvama said.

"Adjusting for the one-time pass-through of ~Rs 10 crore, underlying growth was ~Rs 32 crore, supported by organic growth and forex tailwinds. Overseas business EBITDA margin contracted to 6.27 per cent from 6.99 per cent in Q3 FY26. At the consolidated level, high-margin business (professional + overseas) contributes ~50 per cent to overall profitability, supporting the margin expansion trajectory. Digital platforms revenue grew 149 per cent QoQ to ~Rs 50 lakh while EBITDA loss narrowed down to -Rs 1.37 crore from -Rs 1.51 crore in Q3 FY26," the brokerage further stated.

Meanwhile, shares of Quess Corp were trading 2.77 per cent lower at Rs 217.30 in Wednesday's afternoon trade, sliding 36.79 per cent in the last one year.