Info Edge reported a 12.8% rise in Q2 FY27 standalone billings to ₹822.3 crore, driven by strong growth in its 99acres real estate platform. While core recruitment business Naukri remained stable, the education portal Shiksha faced a significant 27.2% decline, largely due to disruption from AI-driven search tools.
Info Edge India, the operator of platforms like Naukri and 99acres, has released its standalone business update for the second quarter of the fiscal year 2027. The company reported a 12.8% year-on-year increase in billings, reaching ₹822.3 crore. This growth reflects the ongoing expansion of the company's digital service segments, though performance varied significantly across its different business units.
99acres and Matchmaking Drive Momentum
The most notable highlight of the quarter was the performance of the real estate platform, 99acres. Billings for this segment surged by 21.2% year-on-year to ₹148.3 crore. This double-digit growth is particularly important for investors, as the company has been focused on moving this division toward profitability.
At the same time, the company's matchmaking business, which includes Jeevansathi and Aisle, recorded a strong 23.1% growth in combined billings. Meanwhile, the recruitment business, Naukri, which is the company's largest revenue contributor, grew by 12.6% to ₹613.8 crore. Management noted that after adjusting for timing differences in client renewals, the core recruitment business has been performing with underlying growth closer to 14-15%.
Shiksha Faces AI Headwinds
While several business units showed progress, the Shiksha education portal struggled, with billings dropping by 27.2% to ₹20.5 crore. The decline is attributed to changing internet search habits. Users are increasingly turning to artificial intelligence-powered search tools to find information rather than visiting traditional education portals. This shift has reduced the referral traffic to Shiksha. Management is now working to adjust the portal's business model to better compete in an AI-dominated search environment, but this remains a challenge that investors should track closely.
Investment Portfolio and Future Outlook
Beyond its operating businesses, Info Edge maintains a significant portfolio of investments in over 130 companies, including well-known names like Policybazaar and Shiprocket. While these investments are a key part of the company's value, they also present a layer of complexity. Investors often find it difficult to assess the exact impact of these holdings on the company's overall valuation because the performance and financial status of many of these private companies are not fully disclosed.
Looking ahead, the focus for shareholders will be on whether the improvement in 99acres' profitability can offset the ongoing pressure on the Shiksha segment. Market observers will also be watching to see if the recruitment business can maintain its steady growth despite broader economic cycles.