Info Edge reported strong Q2 FY27 results with a 13% revenue jump to Rs 842 crore and a 30% rise in operating profit. The company’s core recruitment business shows steady demand, while the 99acres segment saw a sharp reduction in operating losses. Simultaneously, Info Edge announced a major leadership transition: long-time MD and CEO Hitesh Oberoi will step down on December 2, with founder Sanjeev Bikhchandani assuming the roles of MD and Group CEO.
Info Edge Q2 Results and Leadership Transition
Standalone revenue rose 13% to Rs 842 crore; operating profit grew 30% to Rs 347 crore.
Reader Takeaway: Strong core margins and AI-driven growth offset by IT sector hiring slowdown and leadership change uncertainty.
What just happened
Info Edge (India) Ltd delivered a robust financial performance for the second quarter of FY2027. The company reported a 13% YoY increase in standalone revenue to Rs 842 crore, while operating profit grew by 30% to Rs 347 crore. The Operating PBT margin expanded significantly by 541 basis points to 41%. The firm also announced that Managing Director and CEO Hitesh Oberoi will step down on December 2, after 27 years of service, with founder Sanjeev Bikhchandani stepping into the role of Executive Vice Chairman, Managing Director, and Group CEO starting December 3.
Business Performance
The recruitment segment, the company's backbone, grew 13% in revenue and billings despite a cautious IT sector. The 99acres business showed marked improvement, with billings up 21% and operating losses narrowing to under Rs 2 crore from Rs 23 crore in the year-ago quarter. The matchmaking business (Jeevansathi and Aisle) reached near breakeven at the PBT level. Conversely, the education segment (Shiksha) faced headwinds, with billings down 27% and revenue falling 9% as the company pivots its business model.
AI Initiatives
Info Edge is aggressively integrating AI, with AI-first products now generating an annualized run rate of approximately Rs 240 crore. Quarterly revenue from products that rely solely on AI technology, such as AI-Rex, Talent Pulse, and the jobseeker service 'Neo', reached Rs 60 crore.
Risks to watch
Management highlighted that IT companies are prioritizing replacement hiring over net headcount expansion, which limits growth in the recruitment vertical. Additionally, the 'Job Hai' platform continues to burn approximately Rs 45 crore annually, with a breakeven goal contingent on reaching a topline of Rs 100-125 crore in the coming years. Investors will also be watching for clarity on the long-term permanent CEO succession plan.
What to track next
The market will focus on how the leadership transition under Sanjeev Bikhchandani unfolds and whether the company can maintain margin expansion while scaling loss-making ventures like Job Hai.