Markets India
Info Edge, parent of Naukri.com, reported a 92.9% year-on-year drop in Q2 net profit to Rs 333.8 crore, driven by a prior-year exceptional gain of Rs 5,200 crore. Revenue rose 12.9% to Rs 842 crore, with EBITDA up 27.4% to Rs 377 crore. The board declared an interim dividend of Rs 3 per share.
The sharp net profit decline, attributed to a one-off gain in the same period last year, contrasts with strong revenue and EBITDA growth. Recruitment revenue increased 13.3% YoY, while 99acres’ billings rose 21.2%, and Jeevansathi and Aisle combined billings grew 23.1%. Cash from operations for 99acres hit Rs 22.1 crore, up from Rs 2.3 crore in the prior year. AI and data products contributed a high single-digit share of recruitment revenue, with an annualised run rate of Rs 240 crore.
Info Edge’s strategic shift toward AI-driven growth includes a Rs 150-crore investment in Redstart Labs. Divestments of Medcords and Unnati Online, along with reinvestment in core businesses, aim to bolster high-margin, technology-enabled expansion. However, reliance on the prior-year exceptional gain risks distorting future profitability metrics.
The stock’s 7% year-to-date decline reflects market skepticism about sustained growth, despite improved cash generation and segment-specific performance. Competitors in recruitment and real estate face pressure from Info Edge’s AI-led expansion and 99acres’ market leadership.
While AI initiatives and diversified billings signal resilience, the key uncertainty lies in whether operational performance can sustain profitability without one-off gains. The interim dividend of Rs 3 per share offers short-term shareholder returns amid mixed long-term signals.
The board approved divestments of Medcords Healthcare Solutions and Unnati Online, with a record date of November 6, 2026, for the interim dividend. Info Edge shares rose 4% intraday on results but remained down 7% year-to-date.
Info Edge’s Q2 results highlight a sharp profit decline due to a prior-year exceptional gain, but strong revenue and EBITDA growth, along with AI-driven expansion, suggest resilience. The key uncertainty lies in whether sustained profitability can be achieved without relying on one-off gains.
Topics: Finance, Technology, AI, Recruitment, Real Estate, Divestments, EBITDA, Revenue Growth, Shareholder Returns, Dividend
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Source: ET Markets
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