Just Dial

Just Dial reported a robust Q4 FY25, with operating revenue growing 7% year-on-year to INR289.2 crores. Operating expenses were well-controlled, increasing only 1.7% year-on-year. This led to a healthy 29.8% EBITDA margin, with absolute EBITDA rising 21.9% year-on-year to INR86.1 crores. Operating PBT also saw significant growth of 26.5% year-on-year, reaching INR70.9 crores, and PAT surged 36.3% year-on-year to INR157.6 crores.

For the full fiscal year 2025, Just Dial achieved a revenue growth of 9.5% year-on-year. EBITDA grew substantially by 55% year-on-year, resulting in a full-year EBITDA margin of 29.4%, comfortably exceeding the initial target of 25% plus. Operating PBT for FY25 stood at INR277.6 crores, marking a 72% year-on-year growth, and PAT increased by 61% year-on-year to INR584.2 crores.

The company's operational metrics remained strong, with quarterly unique visitors reaching 191.3 million, an 11.8% year-on-year increase. Mobile traffic, which constitutes 87% of total traffic, grew by approximately 15% year-on-year. Total listings expanded to 48.8 million, up 11.9% year-on-year, and active paid campaigns increased by 5.1% year-on-year to 613,290. Collections in the seasonally strong March quarter saw an 11.3% year-on-year jump to INR340 crores.

Just Dial has optimized its sales strategy by reducing reliance on cold calling and focusing on qualified leads, which has improved telesales productivity by 2.5x to 3x. The company is also implementing dynamic pricing for non-premium listings, which contribute about 50% of revenues, to better align pricing with keyword and geography. This approach aims to accelerate top-line growth while maintaining healthy margins.

As of March 31, 2025, cash and investments stood at INR5,279 crores, growing 14% year-on-year. The company has deployed INR300 crores in fixed deposits, which is reflected as a separate line item under current assets. The finalization of a capital allocation policy, including a dividend, is expected 'most likely next quarter', as discussions with the parent company are ongoing.

For FY26, Just Dial's primary focus is to accelerate top-line growth to a 'mid-teens' level while maintaining EBITDA margins similar to the current 29% plus. This will be achieved through initiatives like increased advertising for users and merchants, and adequate price increases in underpriced categories. The budgeted advertising spend for FY26 is around 2.5% to 3% of the top line, primarily focused on digital advertising.

Just Dial is leveraging AI across various functions to enhance user experience and sales efficiency. AI is used for generating summary reviews for listings, aiding merchants in creating content for their catalogs, and scoring sales leads based on merchant intent and engagement. These AI applications contribute to better content, improved user experience, and increased productivity for the sales team.

The company is developing a pure online shopping site, with a 'flavor of it' expected next quarter. This platform aims to aggregate products from internet-enabled businesses with robust online presence, offering a comprehensive A to Z online shopping experience. It will cater to both B2C and B2B businesses that have online buying capabilities.