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.