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Informist, Monday, Oct. 27, 2025

By Shakshi Jain

MUMBAI – Info Edge (India) Ltd. is expected to post a marginal sequential growth in the top line for the September quarter driven by better performance across all its business segments. While there is continued pressure on earnings due to subdued hiring in the information technology sector, the recruitment arm of the company is expected to benefit from hiring in other industries such as retail, healthcare, and manufacturing.

The company's sequential bottom line growth is expected to be higher than the top line growth for the September quarter due to lower advertising expenses and lower losses in real-estate platform 99 Acres and matrimonial website Jeevansathi, according to analysts.

Info Edge operates online businesses in three broad groups. It offers recruitment services through Naukri, which is its core business segment. It is present in the real estate space through 99 Acres, in the education space through Shiksha, and provides matchmaking services through the Jeevansathi platform. In the third group, Info Edge is an investor in two listed companies, 20 unlisted companies, and several startups through the alternate investment fund route, as per the company's latest annual report. 

The market value of Info Edge's investments in the two listed companies was INR 333.8 billion as of Mar. 31, and the carrying value of the company's investment in the 20 unlisted companies stood at INR 6.35 billion.  

Info Edge's revenue for the September quarter is expected to rise just over a percent sequentially and 14% on year to INR 7.45 billion, according to the average of estimates from five brokerages. The highest estimate for revenue is INR 7.50 billion from JM Financial Institutional Securities Ltd. and the lowest is INR 7.41 billion from Nuvama Wealth Management Ltd. 

The company's bottom line for the reporting quarter is expected to rise 4% sequentially and jump more than three times on year to INR 2.7 billion. The highest estimate for net profit is INR 2.84 billion by JM Financial and the lowest is INR 2.59 billion by HDFC Securities Ltd. 

The slowdown in hiring in the IT sector has affected growth in billings of the recruitment segment, but hiring in industries such as travel, banking and financial services, and insurance remains strong, HDFC Securities said in a report.

Info Edge's standalone billings in the September quarter rose slightly more than 12% on year to INR 7.29 billion, the company had said in a quarterly update earlier this month. Billings from its recruitment solutions rose to INR 5.45 billion in the September quarter from INR 4.92 billion a year ago. Further, billings from 99acres during the quarter rose to INR 1.22 billion from INR 1.07 billion a year ago. 

MARGIN BOOST

Info Edge is expected to report INR 2.99 billion in earnings before interest, tax, depreciation, and amortisation for the September quarter, according to the average of estimates from five brokerages. The highest EBITDA estimate is INR 3.10 billion by JM Financial and the lowest is INR 2.81 billion by Motilal Oswal Financial Services Ltd.

In the June quarter, the company's operating profit had grown 10% on year to INR 2.5 billion while its operating profit margin was 34%.

"Naukri's sequential EBITDA margin expansion of 330 bps (basis points) may appear large on account of higher ad-spends in 1Q (Apr-Jun); we do not expect these ad-spends to recur in 2Q (Jul-Sept)," Kotak Securities said.

Further, HDFC Securities said losses in 99 Acres and Jeevansathi are expected to decrease in the September quarter, which will boost the company's EBITDA. Both the platforms are operating at near break-even levels and are expected to make a profit in the near term, Motilal Oswal said.

Info Edge had reported a consolidated net profit of INR 2.60 billion for the June quarter on revenues of INR 7.36 billion. The company is yet to announce a date for the disclosure of its September quarter results.

On Monday, shares of Info Edge ended 1% lower on the National Stock Exchange at INR 1,364.70. The stock was up 2.5% since the company reported its results for the June quarter on Aug. 8. 

Of the 13 research recommendations on the stock available with Informist, 11 have a "buy" rating on Info Edge and two have a "hold" rating. The average target price of the "buy" recommendations is INR 1,509 and that of the "hold" calls is INR 1,440.

Following are the Jul-Sept earnings estimates for Info Edge from five brokerages in descending order of the estimate of net profit in INR million:

End

Edited by Tanima Banerjee

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