Info Edge shares gained 2.8% on Tuesday as the company reported an 8.4x return on its startup portfolio, which is now valued at ₹41,300 crore. While the investment arm shows strong growth, investors are paying attention to a slowdown in the company's core recruitment business, which is facing pressure from a weak IT hiring market.
What Happened
Info Edge (India) shares rose 2.8% on Tuesday, outperforming the broader BSE 100 index, which declined by 1.16%. The stock's positive movement followed an update on the company’s investment portfolio. Since 2007, the company has invested ₹4,900 crore across 135 startups. As of March 2026, this portfolio is valued at ₹41,300 crore. This represents an 8.4x return on the capital invested. The company highlighted that its investments in consumer technology and artificial intelligence (AI) segments have been the primary drivers of this value creation.
The Investment Engine
The portfolio performance is driven by a few key segments. The company has invested ₹2,760 crore across 45 consumer technology companies, which are now valued at ₹37,220 crore. This represents a 13.5x gain. Additionally, the company has backed 28 AI-focused startups with an investment of ₹610 crore, now valued at ₹1,270 crore, a 2.1x return. Investments in 30 deeptech startups have also shown healthy growth. These figures highlight the success of Info Edge's strategy of acting as a venture capital investor in addition to running its core internet businesses.
The Recruitment Business Reality
While the investment portfolio grows, the company's core recruitment business, centered around Naukri.com, is facing challenges. This business remains the primary revenue driver, but it has experienced pressure due to weak hiring trends in the technology and IT services sectors. In the fourth quarter of fiscal year 2026, recruitment billings grew by 9.5% compared to the previous quarter. While this shows growth, it is lower than the 11% growth seen in the third quarter and trails the company's historical average of 14% to 15%. This slowdown has led to caution among some market observers regarding the company's immediate revenue outlook.
Performance Of Other Segments
Info Edge’s other business segments showed mixed results. The real estate portal, 99acres.com, reported a 21.2% year-on-year revenue increase, though billing growth remained modest at 1.9%. The education platform, Shiksha, recorded a 12.9% decline in billings, with the company noting that AI search tools are changing how users interact with search engines. Meanwhile, the matrimonial portal, Jeevansathi, reported an 18.8% revenue increase and 21% billings growth compared to the previous year.
What Investors Should Track
Market experts have expressed varied views on the company's outlook. Nuvama Research has maintained a positive view based on the company's valuation, though it lowered some earnings forecasts. Conversely, Mirae Asset Sharekhan Research has highlighted concerns about AI disruption, potential revenue slowdowns in the recruitment vertical, and challenges in the education and real estate sectors. For investors, the key monitorables are the recovery in IT sector hiring, which directly impacts recruitment revenue, and whether the company can adapt its education business to shifts in search technology. Stable profit margins in the near term will also be a factor to watch.