Info Edge (India) Limited

Info Edge reported robust standalone performance in Q4 FY25, with billings growing 19% YoY to ₹984 crores and revenue increasing 13% YoY to ₹687 crores. Operating profits rose 3% YoY to ₹231 crores, achieving a 34% margin. For the full year FY25, standalone billings were up 15% to ₹2,882 crores, and revenue grew 11% to ₹2,654 crores, with operating profits of ₹973 crores at a 37% margin. Consolidated net sales for Q4 FY25 stood at ₹750 crores, up from ₹657 crores in Q4 FY24, and profit before tax (excluding exceptional items^📎) was ₹716 crores, significantly higher than ₹324 crores in Q4 FY24. However, the company reported a total comprehensive loss of ₹9,710 crores in Q4 FY25, primarily due to fair value changes in investments.

The recruitment business demonstrated strong growth, with Q4 FY25 billings increasing 18% YoY to ₹740 crores and revenue up 13% to ₹511 crores. Operating profit for the segment improved 8% YoY to ₹278 crores, maintaining a healthy 54% margin. For the full year, billings grew 15% to ₹2,158 crores and revenue 10% to ₹1,983 crores, with a 56% operating profit margin. Growth was broad-based across Tech, IT services, BPM (17%), GCCs (19%), and Other Sectors (19%), with niche businesses like IIM Jobs, Naukri Gulf, and Naukri Fast Forward also showing strong YoY billing growth of 43%, 26%, and 18% respectively. Management noted that growth is partly driven by companies replacing employees due to attrition in a modest hiring environment.

The 99Acres business showed significant improvement, with Q4 FY25 billing growth of 22% to ₹160 crores and revenue growth of 14% to ₹106 crores. Notably, the business achieved cash profitability for the full year FY25, generating ₹2 crores from operations, a substantial turnaround from cash losses of ₹13 crores in FY24. Management indicated aggressive investment in marketing, which has been successful in gaining market share, with live new project listings growing 11% and resale/rental listings from brokers up 27% in Q4. The company is bullish on 99Acres' trajectory and plans to continue investing to accelerate growth.

Jeevansathi continued its positive trajectory, with Q4 FY25 billings growing 24% to ₹32 crores and revenue up 25% to ₹30 crores. Operating losses were significantly reduced by 76% YoY to ₹2 crores in Q4, and cash losses from operations decreased by 73% to ₹2 crores. For the full year FY25, operating losses were cut by 80% YoY to ₹12 crores, and cash losses from operations reduced to ₹8 crores from ₹55 crores in FY24. Management aims for the business to break even this year and grow at 20-25%, leveraging its freemium model and improved AI-powered matching algorithms in a matchmaking market growing at 10% per annum.

The Shiksha business reported Q4 FY25 billing growth of 16% to ₹52 crores and revenue growth of 2% to ₹40 crores, achieving a break-even operating profit and generating ₹16 crores in cash from operations. For the full year FY25, billings grew 14% to ₹162 crores and revenue 8% to ₹150 crores, with ₹26 crores in cash from operations. While the domestic education business grew a strong 26% YoY, the study abroad segment declined 16% YoY. This decline is attributed to higher visa rejection rates for the US and reduced job prospects for students abroad, leading to a shift in student interest towards the UK and continental Europe.

Info Edge is aggressively investing in AI, with a central AI team that has grown 5-6X in headcount and a significant increase in server infrastructure. The company is leveraging AI in three key areas: enhancing existing products with classic ML (leading to 15-20% metric improvements in Naukri applications and Jeevansathi acceptances), developing new AI-powered features (e.g., AI listing in 99Acres, resume summaries), and building brand new AI products (e.g., agentic AI for recruiters, currently in beta testing with 10-12 companies). While not yet aggressively monetizing all AI efforts, management expects benefits to accrue over time^⏳, with 60-70% of current work having an AI element.

The company maintains a strong cash balance of ₹4,786 crores as of March 2025, including wholly owned subsidiaries. The board proposed a final dividend of ₹3.6 per share post-split, bringing the total dividend for FY25 to ₹6 per share post-split, representing a 36% YoY increase. Management emphasized that cash is central to its strategy, used for deferred revenue, operational reserves, investment opportunities (AI, JobHai), and potential inorganic activities. Shareholders also approved a ₹1,000 crore fund, indicating continued strategic investment focus.