Earnings Outlook
Muted IT hiring to affect Info Edge recruitment billings
This story was originally published at 22:15 IST on 7 August 2025
Register to read our real-time news.Informist, Thursday, Aug. 7, 2025
By Akshat Saksena
MUMBAI – Info Edge (India) Ltd. is expected to report a marginal on-quarter growth in its net profit for the June quarter, according to the brokerages tracking the technology-driven company. Info Edge is expected to post slow growth for its recruitment solutions segment as billings for the segment have been impacted due to a slowdown in hiring in the information technology sector.
The recruitment segment is expected to benefit from hiring in segments other than technology, such as travel, banking, financial services, and insurance. The company's on-quarter revenue growth is expected to be driven by robust billings from the previous quarter. Info Edge businesses, Jeevansathi and 99 Acres, are expected to post lower losses and gradually move towards breaking even while Shiksha is expected to sustain growth momentum.
The company is expected to post a net profit of INR 2.57 billion in Apr-Jun, up marginally on quarter and up 11% on year, according to an average of estimates provided by six brokerages. The highest estimate for net profit is INR 2.76 billion from Motilal Oswal Financial Services Ltd. and the lowest estimate is INR 2.47 billion from Centrum Broking Ltd.
The company is expected to post a revenue of INR 7.25 billion in the June quarter, up 5.6% on quarter and up 13.5% on year, according to the average of the six estimates. The highest estimate for the company's revenue is INR 7.40 billion by Motilal Oswal and the lowest estimate is INR 7.1 billion from Centrum Broking.
The company's revenue is expected to rise 3.6% sequentially on the back of strong billings during the previous quarter, Centrum Broking said. The company's earnings before interest, tax, depreciation, and amortisation margin is expected to improve 141 basis points on quarter to 39.1%, primarily due to positive operating leverage, the brokerage said.
The billings growth for the core recruitment segment has slowed to 9% on year in Apr-Jun, compared to mid-teens on-year growth posted for the previous three quarters, due to muted hiring in the IT sector. Hiring in sectors such as travel and banking, financial services and insurance remains strong, HDFC Securities said.
The IT segment accounts for the lion's share of hiring through Info Edge and hence is crucial for a sustained turnaround of the vertical, Motilal Oswal said.
Recruitment growth is affected by macro challenges that have led to a broad slowdown in IT as well as non-IT segments, JM Financial Institutional Securities Pvt. Ltd. said. The company's recruitment segment's profitability is expected to be pressured by aggressive brand spending during the Indian Premier League, according to JM Financial. Naukri's operating profit margin is expected at 56%, up 154 bps on quarter, due to lower advertising expenses, according to HDFC Securities.
99 Acres and Jeevansathi are expected to near break-even levels with profitability expected in FY26, Motilal Oswal said. The company is targeting 20-25% growth for Jeevansathi in 2025-26 (Apr-Mar), and to gradually move towards breaking even, Motilal Oswal said. "Losses in 99 Acres and Jeevansathi are expected to decrease, boosting EBITDA," HDFC Securities said.
Info Edge is expected to report on-quarter growth in revenue driven by sustained growth in the non-recruitment business, with Shiksha and Jeevansathi expected to sustain growth momentum, Nuvama said.
The company's EBITDA is expected to be INR 2.86 billion in the June quarter, according to an average of estimates from six brokerages. The highest estimate for the company's EBITDA is INR 3 billion by Motilal Oswal and the lowest is INR 2.77 billion by Nuvama Wealth Management Ltd.
The company will announce its June quarter earnings Friday. Key factors to be monitored are the outlook on hiring for IT and investee companies with regards to the recruitment segment, Motilal Oswal said.
The company's guidance about demand in the recruitment segment and competitive intensity in the real estate segment will also be keenly watched, Centrum Broking said. The performance of Jeevansathi and 99 Acres will be monitored along with the outlook on IT hiring, according to the brokerage.
On Thursday, shares of the company ended 3% higher at INR 1,361.70 on the National Stock Exchange. The stock is down more than 6% since the company announced its March quarter earnings.
Of the 12 brokerage reports on the company available with Informist, 10 have a 'buy' or equivalent rating on the stock with an average target price of INR 1,515. Two brokerages have a 'hold' rating on Info Edge (India) Ltd.
Following are the June quarter earnings estimates for Info Edge (India) Ltd., in INR million, based on reports from six brokerages in descending order of net profit estimates:
Brokerages |
Net Sales (in INR million) |
Net Profit (in INR million) |
EBITDA (in INR million) |
Motilal Oswal Financial Services Ltd. |
7,398.00 |
2,761.00 |
3,007.00 |
HDFC Securities Ltd. |
7,198.00 |
2,592.00 |
2,872.00 |
Kotak Institutional Equities |
7,228.00 |
2,581.00 |
2,912.00 |
Nuvama Wealth Management Ltd. |
7,291.00 |
2,525.00 |
2,771.00 |
JM Financial Institutional Securities Pvt Ltd |
7304.00 |
2,488.00 |
2,797.00 |
Centrum Broking Ltd. |
7,105.00 |
2,468.00 |
2,778.00 |
Average |
7,254.00 |
2569.17 |
2856.17 |
End
Edited by Tanima Banerjee
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