Info Edge reported a 43% surge in consolidated net profit to Rs 490 crore for the June quarter, driven by strong billings in its Naukri and 99acres platforms. While the company's core businesses showed recovery, investors should note the standalone profit decline and the company’s planned Rs 150 crore investment in AI technology.
Info Edge (India) has kicked off the new fiscal year with strong consolidated numbers. For the quarter ending June 2026, the company reported a 43% year-on-year increase in consolidated net profit, reaching Rs 490 crore. Operating revenue grew by 11% to Rs 881 crore, indicating that its core online platforms are regaining momentum. Following the announcement, the stock reacted positively, trading roughly 2.4% to 4.4% higher during the day.
It is important for investors to note the difference between consolidated and standalone performance. While consolidated profit—which includes exceptional gains, such as those from the transfer of its stake in Shopkirana to Udaan—looked strong, the standalone net profit fell 6% to Rs 245 crore. This standalone dip was primarily due to an exceptional loss of Rs 72.1 crore, separate from the operational gains.
The recruitment segment, powered by the flagship Naukri platform, remains the company's primary growth engine. Billings here rose 17.5% to Rs 553 crore. This growth was notably driven by demand from Global Capability Centers (GCCs), which saw billings jump 31%. The tech services sector also contributed with a 15% billing increase, suggesting that large-scale corporate hiring, particularly in the tech space, is picking up.
99acres, the company's real estate vertical, is moving closer to profitability. The platform narrowed its operating loss significantly compared to the previous year. This improvement was supported by a 16.5% rise in billings to Rs 110 crore. A combination of more paid listings and a surge in property inquiries helped the platform manage its costs better than in past quarters.
However, not all segments are performing equally well. The education platform, Shiksha, faced a decline, with billings dropping 22.8% to Rs 35 crore. Management has pointed to changes in search engine algorithms and a shift in student preferences for overseas education as factors impacting traffic and demand.
Looking ahead, investors should keep an eye on two main factors. First, the company is actively investing in AI, with a set budget of Rs 150 crore for the year, which could impact short-term profit margins as the company spends on new technology. Second, while recruitment billings are strong, the overall hiring environment remains sensitive to global economic trends. The company’s ability to sustain this recovery will depend on whether these core sectors continue to see steady corporate spending.