Info Edge Q2 Results MISS Expectations: IT Hiring Slowdown Hurts, Stock Tumbles!

Tech

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Updated on 13 Nov 2025, 01:50 pm

Info Edge (India) Limited reported its financial results for the second quarter of the fiscal year 2026 (Q2FY26), which fell short of expectations set by financial analysts. The primary reason cited for this underperformance is a significant slowdown in hiring within the Information Technology (IT) sector, a key segment for the company's online recruitment business.

Despite the challenges in the IT vertical, Info Edge saw broad-based growth from other sectors, which helped to offset some of the negative impact. However, the company remains cautiously optimistic about a potential revival in IT hiring.

Following the results, several brokerages have revised their financial forecasts. They have reduced their earnings per share (EPS) estimates and lowered target prices for the stock. This caution stems from multiple 'macro headwinds' affecting the broader economy and the belief that the company's current 'valuations' may not offer significant upside potential.

The stock has experienced a decline of 11% recently, trading at a high price-to-earnings ratio, with current trading levels between 65 to 75 times its estimated earnings per share for FY27.

Impact This news will directly impact Info Edge (India) Limited's stock performance and investor sentiment. It may also signal broader challenges in the recruitment and online services sector, especially concerning the IT industry's hiring trends. Investors might reassess growth prospects given the current economic climate. Rating: 7/10

Difficult terms: IT hirings: The process of recruiting professionals for jobs in the Information Technology sector. Q2FY26: The second quarter of the financial year 2026, typically covering July to September 2025. Brokerage expectations: Forecasts and targets set by financial analysts working for brokerage firms regarding a company's future financial performance. Broad-based growth: Growth that is spread across multiple sectors or segments of the economy or a company's business, rather than being concentrated in just one area. Macro headwinds: Significant external economic or political factors that hinder growth or progress. Valuations: The process of determining the current worth of an asset or a company. In stock markets, it refers to how expensive or cheap a stock is relative to its earnings, sales, or other financial metrics. Earnings per share (EPS) estimates: Forecasts by analysts about the amount of profit a company expects to make for each outstanding share of its common stock.