New Delhi, May 10 -- TeamLease Services, one of India's largest staffing companies, has fallen out of favour with investors after a stellar post-pandemic run. Having doubled investor wealth during the pandemic, the company has since erased nearly 38% of that value in the March 2025 quarter, as challenges in its high-margin segments mount.

Once a darling of foreign institutional investors (FIIs), TeamLease has seen its FII ownership plunge from 42% in June 2022 to just 11% now. Meanwhile, domestic institutional investors (DIIs) are taking a contrarian stance, raising their stake from 16% to 48% over the same period.

This divergence raises a key question: Is TeamLease still a solid bet amid mounting headwinds in specialized staffing, part...