Info Edge shares rose 22% this week after reporting a 14.4% jump in Q1 billings. The growth was led by a 17.5% rise in Naukri's recruitment business, which beat market expectations. Investors are now tracking whether this momentum can continue across the company’s real estate and education segments.
Info Edge (India) shares have moved higher by over 22% in the past week following the release of the company's first-quarter performance for the fiscal year 2027. The primary driver for this investor interest is the recruitment division, Naukri, which reported billings growth of 17.5% compared to the same period last year. This performance marked a clear improvement from the growth rates of 10-11% and 9.5% seen in the preceding quarters of the previous fiscal year.
Drivers Behind Recruitment Growth
The company noted that its standalone billings grew by 14.4% for the quarter ending June 2026. This exceeded market expectations by more than 400 basis points. The growth in the recruitment vertical is attributed to a combination of higher pricing and the introduction of new artificial intelligence-powered tools, which helped increase the average revenue per user. Additionally, the platform has seen more activity in senior and specialized hiring roles, and an uptick in job seekers opting for paid services as they navigate a challenging environment in the IT services sector.
Performance Across Other Verticals
Beyond the flagship recruitment business, Info Edge operates a diverse portfolio of internet platforms. The real estate portal, 99acres, showed progress with 16.6% billings growth, surpassing initial estimates. The company has publicly stated its long-term ambition to double the size of the 99acres business within three years, aiming for operating profit margins between 25% and 30%. Meanwhile, the Jeevansathi matrimony business reported a 14% year-on-year increase in billings. In contrast, the Shiksha education platform faced difficulties, recording a 22.8% decline in billings. Management has linked this weakness to the impact of artificial intelligence tools on its search-based business model.
Outlook and Financial Projections
Following the quarterly update, several brokerages have adjusted their projections for the company. Reports from firms like Goldman Sachs, J.M. Financial, and Nomura suggest that sustained mid-teen growth in billings could support the company's valuation. Goldman Sachs has projected revenue growth of 13% and operating profit growth of 30% for the period between FY27 and FY29. These projections are based on the assumption that the recruitment segment will maintain its current momentum. Investors will likely track the company's ability to stabilize the education vertical while managing its aggressive expansion goals for the real estate segment. The key monitorable for the coming quarters will be whether the growth in Naukri remains steady and if the company can successfully offset the pressure on its education business.