Detailed Narrative
Overall Financial Performance and Cash Position
Info Edge reported consolidated net sales of ₹805 crores for Q2 FY26, a 14.8% increase from ₹701 crores in Q2 FY25. Profit before tax, excluding exceptional items📎, rose to ₹404 crores from ₹335 crores in the prior year. Standalone billings, including Zwayam and DoSelect, grew 12% YoY to ₹752 crores, with revenue at ₹769 crores, up 14% YoY. The company maintained a strong cash balance of ₹4,823 crores, including wholly-owned subsidiaries, as of September 30, 2025.
Recruitment Business Resilience Amidst Market Uncertainty
The standalone recruitment business billings grew 11% to ₹545 crores, and revenue grew 13% to ₹558 crores in Q2 FY26. Operating profit for the segment improved 9% YoY to ₹312 crores, achieving a 56% margin. Despite a modest hiring market, particularly in IT, the company saw growth in other sectors (11% YoY) and GCCs (18% YoY). Investments in niche platforms like NaukriGulf (22% YoY growth) and JobHai are ongoing, with JobHai targeting ₹15-17 crores in revenue this year.
99acres Focus on Market Share and Monetization Lag
In the real estate segment, 99acres billings grew 14% to ₹122 crores and revenue by 13% to ₹115 crores. The business incurred operating losses of ₹23 crores and generated ₹2 crores in cash from operations. Management highlighted significant traffic share gains, averaging 47-50% over the last three months, but acknowledged a lag in monetization. The focus remains on continued investment to gain market share, with a target to reach 20-25% revenue growth in the long term.
Jeevansathi's Growth Momentum and Breakeven Status
The matrimony business, Jeevansathi, demonstrated strong growth, with billings and revenue both increasing by 29% to ₹34 crores in Q2 FY26. The business achieved breakeven at both the operating level and cash from operations during the quarter. This performance was driven by monetization initiatives and a focus on Hindi-speaking markets, where the company aims to maintain its growth momentum.
Shiksha's Traffic Challenges Due to AI
Shiksha reported billings growth of 13% to ₹28 crores and revenue growth of 18% to ₹39 crores, with an operating profit of ₹2 crores. However, management expressed concern over a decline in traffic due to the impact of AI chatbots and summaries on search results. The company is actively working on strategies to mitigate this decline, but expects it to take a few quarters to resolve, indicating a shift in user behavior for content-led platforms.
Strategic AI and Machine Learning Initiatives
Info Edge is extensively leveraging AI across its platforms to enhance search quality, user personalization, and productivity. This includes upgrading Naukri's database with AI/ML, improving job seeker engagement by 15-20%, and using generative AI for content creation and marketing campaigns. The company is also experimenting with AI-powered features like a 'recruitment co-pilot' in Resdex, which is in commercial beta with some customers, aiming for indirect monetization through improved user and customer experience.
PB Fintech Amalgamation and Exceptional Gain
The amalgamation of Makesense Technologies with PB Fintech was completed, resulting in Info Edge directly holding its 6.5% stake in PB Fintech. This transaction led to an exceptional gain📎 of ₹5,200 crores in Q2 FY26, reflecting the difference between the investment cost and fair value. Management clarified that this was a procedural step planned for several years and should not be interpreted as a precursor to further stake sales.