Just Dial shares jumped nearly 15% after reporting a 4.1% rise in net profit to ₹166.2 crore for the June quarter. The company also announced a major leadership change, with a new CEO set to take over in August. Investors are evaluating the impact of these management changes alongside the firm's recent financial performance and increased operating costs.
Just Dial shares saw a sharp rally on Monday, gaining nearly 15% to reach ₹648 on the BSE. This marks the company's strongest single-day stock performance in two years. The market reaction followed the release of the June quarter results for FY27 and the announcement of a major transition in the company's top management.
Financial Growth and Operational Costs
For the quarter ending June 30, 2026, Just Dial reported a net profit of ₹166.2 crore, representing a 4.1% increase compared to the same period last year. Revenue for the quarter rose by 9.9% to ₹327.5 crore. The company saw growth in its core business metrics, with active listings reaching 56.1 million, a 13% increase from the previous year. Additionally, the number of active paid campaigns grew by 3.5% to 639,200.
While revenue grew, the company’s profit margins faced pressure. The operating profit margin (EBITDA margin) stood at 26.7%, reflecting a contraction of 233 basis points year-on-year. This decline was primarily driven by higher spending on marketing and an increase in headcount, with the company adding 267 new employees during the quarter. Investors may want to track whether these expenses translate into sustainable long-term revenue growth or if they continue to weigh on profitability in upcoming quarters.
Leadership Overhaul and Future Outlook
Following 33 years at the helm, founder VSS Mani is set to step down as CEO and Managing Director on July 31, 2026. The company has named Dinkar Ayilavarapu, a former Flipkart executive, as the CEO-designate, who will assume the role on August 1. Furthermore, Dinesh Taluja has been appointed as the new Chief Financial Officer. This transition marks a significant shift for the Reliance Retail-backed entity.
Brokerage firm ICICI Securities noted that the company achieved its fastest sequential revenue growth in a decade, supported by better pricing strategies and the increase in paid campaigns. However, the brokerage revised its target price for the stock to ₹825, down from its previous estimate of ₹968, citing the margin pressure caused by the current investments in human resources and marketing. The market's focus will likely remain on how effectively the new management team manages these operating costs while maintaining growth in paid campaigns and overall platform traffic.