Info Edge (India) Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Info Edge reported strong Q3 FY26 results with double-digit growth in standalone billings and revenue, reaching Rs. 747 crores and Rs. 765 crores respectively. Operating profits grew 13% to Rs. 297 crores, with margins at 39%. The Board approved an increased dividend payout of up to 65% of PAT and declared a second interim dividend of Rs. 2.40 per share. While recruitment and matchmaking segments showed robust growth and improved profitability, the education business faced challenges due to AI impact on traffic, and the real estate segment continued to incur losses.

Highlights

  • Standalone billings of Rs. 747 crores, up 12% YoY

  • Standalone revenue of Rs. 765 crores, up 14% YoY

  • Standalone operating profits of Rs. 297 crores, up 13% YoY, with operating margins at 39%

  • Dividend payout ratio revised to upto 65% of PAT, up from 39% last year

  • NaukriGulf's operating margin improved to 33% from break-even

  • Jeevansathi plus Aisle combined operating losses reduced by 60% to Rs. 4 crores

Concerns

  • Mid-segment (Rs. 5-30 lakhs CTC) volume growth moderated to 4% from 7-8%

  • Non-IT customer monetization remained weak, with YTD sales growth around 7%

  • AI impact led to a sharp drop in traffic for the Shiksha domestic business

  • Real Estate segment incurred operating losses of Rs. 20 crores and cash losses of Rs. 10 crores in Q3 FY26

Key financials

  1. Standalone Billings ₹747 Cr +12%YoY
  2. Standalone Revenue ₹765 Cr +14%YoY
  3. Standalone Operating Profit ₹297 Cr +13%YoY
  4. Standalone Operating Margin 39%
  5. Cash from Operations (Standalone) ₹376 Cr
  6. Cash Balance (Dec 2025) ₹4,825 Cr

What they filed

Q1 FY27: revenue up 12.0%, net profit down 5.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue656 672 687 736 746 +14%765 +14%805 +17%824 +12%
EBITDA274 290 259 278 295 +8%325 +12%350 +35%363 +31%
Net profit86 200 255 260 4,720 +5388%246 +23%309 +21%246 −5%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentBillingsRevenue
Recruitment (Standalone)₹548 Cr₹575 Cr
Recruitment (incl. Zwayam & DoSelect)₹565 Cr₹592 Cr
Naukri Jobseeker Services——
NaukriGulf——
Real Estate (99acres)₹117 Cr₹119 Cr
Matchmaking (Jeevansathi)₹36 Cr₹35 Cr
Matchmaking (Jeevansathi + Aisle)₹46 Cr—
Education (Shiksha)—₹36 Cr

Capital allocation

high confidence
  • Dividend ₹2.4/share (interim) Payout ratio 65%
    The Board has approved an increase in the dividend payout to enhance shareholder returns while retaining adequate capital to support business operations, investments, and potential strategic acquisitions. The dividend payout ratio has been revised to upto 65% of PAT, continuing our track record of progressively improving shareholder distributions, with last year's payout at 39%. The Board has also approved a second interim dividend of Rs. 2.40 per share for the year.
  • M&A Makesense Technology Acquisition · Integrated

    Technology company, Semantic Search, worked out well for us. It was perhaps Al, it was not called Al in those days, but it was early Al.

    We acquired a company called Makesense Technology. It was a technology company, Semantic Search, many years ago, it worked out really well for us. It was perhaps Al, it was not called Al in those days, but it was early Al.
  • M&A AmbitionBox Acquisition · Integrated

    Small company, now bigger than Glassdoor in India.

    Then we acquired AmbitionBox. It was a small company when we acquired it a few years ago. It's turned out, it's now bigger than Glassdoor in India.
  • M&A iimjobs and hirist Acquisition · Integrated

    Small companies, worked out well for us, helped address premium segment weakness.

    Then a few years back, we acquired iimjobs and hirist. limjobs, hirist was tiny at that time. That's also worked out well for us.
  • M&A Zwayam and DoSelect Acquisition · Integrated

    SaaS and assessment platforms, still WIP.

    Then, a couple of years ago, we acquired Zwayam and DoSelect. These are, again, small acquisitions more on SaaS and assessment platforms, still WIP, for us.
  • M&A Aisle Acquisition · Integrated

    Matchmaking business, now 100% owned and performance reported with Jeevansathi.

    We acquired Aisle a few years ago and the business has since made good progress. We now own 100% of Aisle and are reporting its performance alongside Jeevansathi as part of our matchmaking portfolio.
  • Liquidity Cash ₹4,825 Cr Cash balance includes wholly owned subsidiaries.
    The cash balance of InfoEdge, including wholly owned subsidiaries, at the end of December 2025 stood at Rs. 4,825 crores.

Guidance & targets

Dividend

  • Dividend Payout Ratio Dividend · FY26 · High confidence upto 65%

    Previously 39% → upto 65%

    The dividend payout ratio has been revised to upto 65% of PAT, continuing our track record of progressively improving shareholder distributions, with last year's payout at 39%.

    — Hitesh Oberoi

Pricing

  • Price Increase (Recruitment) Pricing · longer term · Medium confidence 5-6% per annum
    But, over a period of time, if you take a longer period, then price increases tend to be in the range of 5-6% per annum.

    — Hitesh Oberoi

Business Contribution

  • JobHai contribution to Naukri India Business Contribution · in 5-6 years · Medium confidence 10-15%
    So now, what will success look like, if in five years or six years, this becomes 10-15% of Naukri India, then I think that is what success will look like in JobHai.

    — Hitesh Oberoi

Profitability

  • Recruitment Operating Margins Profitability · if growth in teens · Medium confidence maintain and improve
    If we continue, if we can grow in the teens, we will be able to maintain and improve our margins. If we grow in single digits, then we might lose some margin, let's see.

    — Hitesh Oberoi

What to watch in Q4 FY26

Mid-segment volume growth

next quarter
Current 4% (moderated from 7-8%)
Target Improvement/stabilization

Why it matters

Indicates the health and recovery of a significant hiring segment for the company.

The mid-segment volume growth has moderated actually over the last few years is what we sense. We used to see 7-8% volume growth in this segment every year, maybe four or five years ago. Since then, that has moderated to 4% volume growth.

Risks & concerns

  • Hiring environment uncertainty

    medium

    The overall hiring environment remains uncertain, as indicated by the Job speak index.

    Management acknowledged

  • Mid-segment volume growth moderation

    medium

    Volume growth in the mid-segment (Rs. 5-30 lakhs CTC) has moderated from 7-8% to 4% over the last few years.

    Management acknowledged

  • Weak monetization from Non-IT customers

    medium

    Monetization from Non-IT customers (BFSI, Retail, Infrastructure) has been weak since May, with YTD sales growth of ~7%, attributed to cyclical economic factors.

    Management acknowledged

  • AI impact on Shiksha traffic and billing growth

    medium

    AI's impact is causing a sharp drop in traffic for the Shiksha domestic business, which is expected to affect billing growth over time.

    Management acknowledged

  • Potential margin loss if growth is single digit

    medium

    If overall growth in recruitment falls to single digits, the company might lose some operating margin.

    Management acknowledged

Q&A highlights

5 direct
Hiring Trends in Mid-Segment Direct
Our overall sense of the market right now is that the volume growth continues to be robust in the premium and in the value segments... The mid-segment volume growth has moderated actually over the last few years is what we sense... to 4% volume growth.

Management confirmed a slowdown in volume growth for the mid-segment hiring market, which is a key part of their business.

Asked by Sachin

AI-Rex Adoption and Monetization Strategy Partial
It's still early days and close to 100 of our clients are now experimenting with Al-Rex... Our short-term goal will be to get more and more clients to use it first. So we'll focus on adoption and usage. We think if we are able to enable more hiring through Al-Rex... revenue will follow.

Management indicated that monetization of their key AI platform, AI-Rex, is not a near-term focus, prioritizing adoption and usage first.

Asked by Sachin

India vs. Global Hiring Dynamics and AI Impact Direct
Globally, job listings is what works in most of the markets... that's not a very effective way of hiring in India because what tends to happen in India... is that there are lots of applicants... If these Al agents lead to more spam, more job seeker spam, I think the value of databases like Naukri may actually go up.

Management explained India's unique hiring market dynamics (high spam from job listings) and how AI could paradoxically increase the value of Naukri's database by exacerbating spam elsewhere.

Asked by Sachin

Weak Monetization from Non-IT Customers Direct
Our YTD sales growth in the non-hiring segment is close to seven percent. We've seen a sharp slowdown compared to the last year... I suspect this is cyclical... As and when the economy comes back, this growth should come back.

Management attributed the weakness in monetization from non-IT customers to cyclical economic factors, indicating it's not a structural issue with their offering.

Asked by Vivekanand

Impact of AI on Recruitment Subscription Pricing Partial
Per resume pricing may not change. But yeah, if companies, if consumption, if X number of resumes were being accessed, let's say last year, and that number starts to fall, then of course, volume will go down. But not pricing, necessarily.

Management clarified that while AI might reduce consumption volume, the per-resume pricing itself is unlikely to change, suggesting revenue impact would be from volume, not rate.

Asked by Swapnil

Margin Expansion Outlook with Low-Teen Billing Growth Partial
There are some investments which we need to make, like we are losing approximately Rs. 50 crores a year in our JobHai business... We will continue to make these investments. Marketing investments we can play with a little bit here and there... If we continue, if we can grow in the teens, we will be able to maintain and improve our margins. If we grow in single digits, then we might lose some margin, let's see.

Management outlined ongoing investments in JobHai and AI, indicating that margin expansion is contingent on achieving teen-level growth, with potential pressure if growth slows further.

Asked by Swapnil

Growth Challenges for Zwayam & DoSelect Direct
We have been experimenting over the last few quarters with different go to market and, bundling strategies. For our newer offerings, it'll take a while, maybe a quarter or two for the dust to settle down on that front till we get it right... Things will settle down maybe in a couple of quarters.

Management explained that slower growth in Zwayam and DoSelect is due to ongoing experimentation with market strategies for newer offerings, with an expectation for stabilization in a few quarters.

Asked by Vivekanand

JobHai Scalability and Long-Term Vision Direct
We believe that JobHai is now the biggest sort of player in this segment, in NCR... We will over the next 12 months, take this playbook to other cities... if in five years or six years, this becomes 10-15% of Naukri India, then I think that is what success will look like in JobHai.

Management provided a clear strategic roadmap and long-term vision for JobHai, positioning it as a significant future contributor to Naukri India's revenue.

Asked by Vivekanand

3 min read 7 chapters

Detailed narrative

Overall Financial Performance (Q3 FY26)

Info Edge reported robust standalone performance in Q3 FY26, with billings growing 12% YoY to Rs. 747 crores and revenue increasing 14% YoY to Rs. 765 crores. Operating profits rose 13% YoY to Rs. 297 crores, achieving a 39% operating margin. The company generated Rs. 376 crores in cash from operations before taxes during the quarter, contributing to a strong cash balance of Rs. 4,825 crores as of December 2025.

Recruitment Segment Dynamics and Challenges

The standalone recruitment business saw billings grow 11% to Rs. 548 crores and revenue by 14% to Rs. 575 crores, with operating profit up 15% YoY to Rs. 341 crores, achieving a 59% margin. While the premium and value segments showed robust volume growth, the mid-segment experienced a moderation from 7-8% to 4%. Non-IT customer monetization remained weak, with YTD sales growth of approximately 7%, attributed to cyclical economic factors rather than AI impact.

Real Estate (99acres) Performance and Supply Leadership

The 99acres business recorded 14% growth in both billings (Rs. 117 crores) and revenue (Rs. 119 crores) in Q3 FY26. Despite this growth, the segment incurred an operating loss of Rs. 20 crores and cash losses of Rs. 10 crores. The secondary business performed well, and the platform continued to gain supply share, with live resale cum rental listings from brokers growing 41% YoY and new project listings up 27% YoY. Traffic share increased to 46% from 44% in Q2.

Matchmaking (Jeevansathi & Aisle) Progress Towards Break-Even

The matchmaking business, including Jeevansathi and Aisle, demonstrated strong momentum with combined billings growing 31% YoY to Rs. 46 crores in Q3 FY26. Operating losses for the combined entity reduced significantly by 60% to Rs. 4 crores, nearing break-even. Jeevansathi has progressed from Rs. 120 crores in operating losses to break-even and holds a 45% profile share in Hindi-speaking markets. Aisle grew 35% YoY, and the Kerala app, Arike, grew even faster.

Education (Shiksha) Business Challenges and Strategic Pivot

The Shiksha business experienced a 4% YoY growth in billing to Rs. 46 crores and 3% in revenue to Rs. 36 crores, but faced an operating loss of Rs. 1 crore. The company noted a 'sharp drop in traffic' due to the visible impact of AI on its domestic business. To mitigate this, Shiksha is pivoting its business model towards counselling and marketing services, while diversifying study abroad offerings beyond the US and Canada to regions like the UK, UAE, and Continental Europe.

AI Initiatives and Strategic Advantage

Info Edge is actively leveraging AI across its verticals, including AI-Rex, an agentic AI-led workflow automation platform, which is being experimented with by approximately 100 clients and has processed 20,000 job mandates. AI is also deployed in Jeevansathi for recommendations, matching, and pricing, and in 99acres for matching and recommendations. Management believes India's unique hiring dynamics, characterized by high spam from job listings, make its database-driven AI approach more valuable compared to global models.

Capital Allocation and Shareholder Returns

The Board approved an increase in the dividend payout ratio to up to 65% of PAT, up from 39% last year, and declared a second interim dividend of Rs. 2.40 per share. The company maintains a strong cash balance of Rs. 4,825 crores. Management indicated a strategy of pursuing small, strategic M&A opportunities, particularly acqui-hires, technology, products, and small businesses that can be scaled, rather than major diversification.

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