Just Dial

Just Dial reported operating revenue of INR 289.2 crores for Q4 FY25, marking a 7% year-on-year growth. Operating expenses were well-controlled, growing only 1.7% YoY, with employee expenses marginally up 0.9% and other expenses up 7.5%. This led to a healthy EBITDA of INR 86.1 crores, growing 21.9% YoY, and an EBITDA margin of 29.8% for the quarter. Profit after tax (PAT) for the quarter stood at INR 157.6 crores, a 36.3% YoY increase.

For the full year FY25, Just Dial achieved a revenue growth of 9.5% YoY and a significant 55% YoY growth in EBITDA, with the full-year EBITDA margin at 29.4%, comfortably exceeding the 25% target. Operating PBT grew 72% YoY to INR 277.6 crores, and PAT grew 61% YoY to INR 584.2 crores. For FY26, the company aims to accelerate top-line growth to mid-teens while maintaining similar healthy margin levels, indicating a focus on efficient growth.

Collections saw a decent 11.3% YoY jump in Q4 FY25, reaching INR 340 crores, contributing to a 10% YoY growth in deferred revenue to INR 558 crores as of March '25. This improvement is attributed to initiatives like shifting the telesales team's focus from cold calling to qualified leads, which has resulted in a 2.5x to 3x increase in productivity per person. This strategy allows for managing current output without a significant increase in sales force.

The company is implementing dynamic pricing for non-premium listings, which constitute about 50% of its revenues. Previously, non-premium listings had uniform pricing across keywords within a geography, but now pricing will be customized based on the keyword and business type. This change is expected to help in overall realization per customer and drive future revenue growth, supporting the target of 7-8% blended price increase.

Just Dial is planning to launch a 'pure online shopping site,' with a 'flavor' of it expected by the next quarter. This initiative aims to tap into the online selling market by providing a platform for businesses with an online presence, aggregating products and services from various sites, and offering advanced search capabilities by keywords and attributes like colors. This marks a strategic expansion beyond its traditional local search model, targeting both B2C and B2B online sellers.

AI is being deployed across several functions to enhance efficiency and user experience. This includes automating review summarization for user engagement, aiding merchants in creating content and descriptions for their listings, and improving sales team productivity by scoring leads based on merchant intent and engagement with the platform. These AI applications aim to provide better content, improve overall platform utility, and enhance the experience for both users and merchants.

As of March 31, 2025, Just Dial held INR 5,279 crores in cash and investments, representing a 14% YoY growth. These funds are primarily invested in debt mutual funds, fixed deposits, and tax-free bonds. The company clarified that INR 300 crores are specifically deployed in fixed deposits, appearing as a separate line item under current assets, with minimal cash in current accounts. The finalization of a cash return policy, likely a dividend, is expected by the next quarter.