Info Edge (India) Ltd reported a 12.8% year-on-year revenue increase to ₹840 crore for the second quarter of FY27. While the company's core operations showed improved margins, analysts have maintained a neutral rating with a target price of ₹1,240, reflecting current market valuations and future growth expectations.
Info Edge (India), the parent company behind platforms such as Naukri.com, 99acres, and Jeevansathi, reported steady financial results for the second quarter of fiscal year 2027. The company's standalone revenue reached ₹840 crore, marking a 12.8% increase compared to the same period last year and a 2.2% growth over the previous quarter. This performance aligned with market expectations for the period.
The firm's operational efficiency also saw an improvement during this quarter. The operating profit margin, or EBITDA margin, reached 44.8%, representing an 80 basis point expansion over the preceding quarter and performing better than the estimated 42.2%. Total billings for the quarter rose by 12.8% year-on-year to ₹820 crore, suggesting that demand across the company's core business segments remains consistent.
Profitability also improved significantly. The company reported an adjusted profit after tax of ₹330 crore, which is a 28% increase from the year-ago period, outperforming the projected ₹300 crore mark. For the first half of the fiscal year, the business demonstrated consistent growth, with revenue increasing by 12.4% and operating profit rising by 29.1% on an annual basis.
Following these results, research analysts have maintained a neutral stance on the stock, setting a target price of ₹1,240. This valuation is based on a sum-of-the-parts model, a method that separately calculates the value of the company's core recruitment business and the value of its investments in other entities. This approach accounts for both the operating business and the firm's significant stakes in listed companies like Zomato and PB Fintech. The neutral rating suggests that the current stock price is considered to be in line with the projected future performance.
Info Edge operates a hybrid business model. While the recruitment business (Naukri) is the primary revenue driver, the company’s valuation is also highly sensitive to the market performance of its venture capital portfolio. Because the stock price often fluctuates based on the performance of these investee companies, investors frequently monitor the health of the recruitment sector and the broader internet economy.
Looking ahead, the company has projected continued growth for the second half of the 2027 fiscal year. The management estimates that revenue, operating profit, and adjusted profit after tax will grow by approximately 12.5%, 12%, and 13% respectively. For shareholders, the key monitorables moving forward will include the actual execution of these growth targets and any potential shifts in the demand for recruitment services, which remains the backbone of the company's cash flow.