Info Edge reports steady business growth ahead of leadership transition

Info Edge (India), which owns and operates internet-led businesses, delivered steady business growth in the second quarter ended September 30, 2026. Consolidated revenue from operations rose 12.2% year on year (YoY) to Rs 903.9 crore, while profit after tax was up 87% YoY at Rs 649.8 crore.

Growth was supported by the recruitment business, faster expansion at property portal 99acres, and continued momentum in the matchmaking business. However, the education segment remained under pressure.

Profitability improved as expenses grew more slowly than revenue, although higher other income also contributed to the increase in reported profits.

There is also a leadership transition in the offing. Hitesh Oberoi is due to leave the full-time role of Managing Director and CEO on December 2 this year, after nearly 27 years with the company. Founder Sanjeev Bikhchandani is slated to assume an expanded executive role from December 3, subject to shareholder approval.

Operating growth improves

Info Edge operates the brands Naukri (online recruitment), 99acres (property listings), Jeevansathi and Aisle (matchmaking), and Shiksha (education services). It also invests in other businesses. So its financial results reflect both operating performance and changes in investment values.

Consolidated total income, including other income, increased 37.7% YoY to Rs 1,332.3 crore. Other income rose 164.8% to Rs 428.4 crore from Rs 161.8 crore, while total expenses increased 4.5% to Rs 588.6 crore from Rs 563.5 crore. Profit before tax, before exceptional items, rose 85.2% to Rs 747.7 crore.

Consolidated PAT reached Rs 649.8 crore, up 87% YoY from Rs 347.5 crore. This includes profits attributable to non-controlling interests in subsidiaries. The portion attributable to Info Edge’s shareholders was Rs 479.7 crore, up 51.6% from Rs 316.4 crore.

Based on consolidated revenue, expenses, depreciation and finance costs, operating EBITDA (earnings before interest, tax, depreciation and amortisation) comes at approximately Rs 354 crore, up 27.4% YoY, with a margin of 39.2%, compared with 34.5% a year earlier. 

Standalone revenue from operations rose 12.8% to Rs 841.7 crore, while operating profit before tax increased 29.8% to Rs 347.3 crore. Its margin expanded to 41.3% from approximately 35.9%.

Standalone PAT, however, fell 92.9% to Rs 333.8 crore from Rs 4,720 crore. The previous year’s quarter included an exceptional gain of Rs 5,200 crore arising from an unrealised investment valuation gain following the amalgamation of Makesense Technologies with PB Fintech. The decline therefore does not represent a comparable deterioration in operating performance.

Revenue streams diverge

Recruitment remained the largest revenue contributor. The company's earnings presentation, which includes acquired businesses in its operating-business breakdown, puts recruitment revenue at approximately Rs 682 crore, or 75.4% of the total. Standalone recruitment revenue grew 13.3% YoY to Rs 632 crore, while operating profit before tax increased 19.9% to Rs 374 crore. Its operating margin reached 59.1%.

Recruitment billings grew 12.6% in Q2 and 14.9% in the first half of FY27. Candidate Services billings increased 37%, while AI and data products for recruiters and job seekers accounted for a high single-digit share of recruitment topline.

Real estate contributed approximately Rs 134 crore, or 14.8% of revenue. 99acres revenue grew 16.7% YoY, while billings increased 21.2%. Property enquiries rose over 33% and app daily active users grew 25%. Operating losses narrowed 93% to Rs 1.6 crore, while cash from operations rose to Rs 22 crore from Rs 2.3 crore. These figures indicate improving business economics, although sustained operating profitability remains a test.

Matchmaking contributed around Rs 53 crore, comprising Rs 40 crore from Jeevansathi and Rs 13 crore from Aisle. Jeevansathi revenue grew 16.5% and it reported operating profit of Rs 2 crore. Aisle revenue increased 35.1% and billings rose 40%, but it recorded an operating loss of Rs 3 crore. Combined matchmaking billings grew 23.1% YoY.

Education remained the weakest business. Shiksha generated approximately Rs 35 crore in revenue, down 8.5% YoY, while billings fell 27.2%. The company attributed the pressure to AI-related traffic headwinds, declining Google-referred search traffic and subdued student interest in studying in the US, with preferences shifting towards the UK, Australia and Europe. The business reported negative operating cash flow of Rs 16 crore. 

Cash and transition

Standalone cash generated from operations before tax rose 27.4% YoY to Rs 372.8 crore. The company reported a cash balance of approximately Rs 4,976 crore as at September 30, 2026, including balances held by wholly owned subsidiaries.

The company board has declared an interim dividend of Rs 3 per share and approved an investment of approximately Rs 150 crore in wholly owned subsidiary Redstart Labs. It has also approved exits from the stakes in Medcords and Unnati Online, investments that had been fully impaired in earlier years.

Edited by Swetha Kannan