This article first appeared on GuruFocus .
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Revenue:Standalone Info Edge revenue grew 13% YoY to INR824 crores.
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Operating Profit:Grew 33% to INR334 crores, with an operating PBT margin of over 40%.
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Cash from Operations:Grew 25% to INR225 crores.
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Cash Balance:INR5,034 crores at the end of Q1.
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Recruitment Business Billings:Grew by over 17%; underlying billings growth estimated at around 15% after adjusting for timing differences.
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Recruitment Business Revenue:Grew 13% in Q1.
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Recruitment Business Operating Profit:Grew 25%, with an operating PBT margin of 58%.
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Recruitment Business Cash from Operations:Grew 36%.
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Naukri 360 Billings:Grew by over 35%.
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Naukri Gulf Growth:Grew 12%.
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99acres Billings:Grew by around 17%.
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99acres Revenue:Increased by 17%.
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99acres Operating PBT Losses:Reduced significantly by 89%, moving close to breakeven.
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Matchmaking Portfolio Billings:Grew 20% YoY.
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Jeevansathi Billings:Grew 14%.
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Aisle Billings:Grew 44%.
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Shiksha Billings:Declined 23%.
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Shiksha Revenue:Declined 12%.
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Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Info Edge (India) Ltd ( BOM:532777 ) reported a strong quarter with standalone billings growing over 14%, driven by its two largest businesses, recruitment and 99acres.
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The recruitment business saw improved growth, with underlying billings growth estimated at around 15%, supported by better enterprise renewal rates and broad-based improvement across segments like Tech/IT/BPM (15% growth) and GCCs (31% growth).
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New AI-driven monetization levers, such as AI REX and TalentPulse, are gaining traction, with AI REX live across 4,000+ enterprise customers and over 10% already converted to paying customers, contributing to higher ARPU.
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The job seeker business (Naukri 360) outperformed with billings growing over 35%, and its operating PBT margin improved to 63%, aided by AI-powered offerings and a shift to self-serve models.
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99acres delivered a strong quarter with billings growth of around 17%, significantly reduced operating losses (down 89%), and moved close to breakeven, while strengthening its market leadership in traffic and supply.
Negative Points
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Info Edge (India) Ltd ( BOM:532777 )'s Shiksha business continues to face significant headwinds, with billings declining 23% and revenue down 12% due to AI-driven changes in search behavior affecting traffic and client delivery outcomes.
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The recruitment consultants segment remains under pressure, with billings growth of only 1%, as companies tend to in-source hiring during a slowdown, impacting this revenue stream.
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Naukri Gulf's growth slowed to 12%, below its previous 20% trajectory, due to geopolitical disruptions in the Middle East, although the long-term opportunity is considered intact.
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The overall hiring volume growth, as indicated by the JobSpeak index, remains sluggish, and the company's growth is increasingly reliant on premiumization and new offerings rather than broad-based volume expansion.
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The study abroad segment within Shiksha saw softness in key markets like the US and Canada, requiring the company to actively shift focus to other destinations like the UK, UAE, and continental Europe.
Q & A Highlights
Q: Can you provide a breakdown of Naukri's 13% YoY revenue growth, specifically how much is driven by higher realizations versus an increase in billing customers, and what is driving the realization increase? A: Hitesh Oberoi, CEO & MD, explained that roughly one-third of the revenue growth can be attributed to more renewals and higher volume from certain segments, with premium hiring growing at a faster clip (premium CV views growing over 25% on a small base). He estimated that about one-third of the growth resulted from newer offerings like AI-Rex and TalentPulse. He also provided segment-wise billing growth: GCCs grew 31%, Tech/IT/BPM grew 15%, other non-IT sectors grew 12%, while recruitment consultants were nearly flat at 1%.
Q: Is it fair to say that the days of 10-11% billings growth are behind us, and can growth accelerate given the trends in premium hiring and GCC/IT strength? A: Hitesh Oberoi noted that the "joker in the pack" is the middle segment, which represents a large chunk of revenue and has not seen desired volume growth. While there are early signs of market improvement, he was cautious about predicting whether growth will be 10%, 15%, or 8%. He highlighted strong early traction for new offerings like AI REX (sold to over 400 clients in Q1 and another 300 in July) and TalentPulse, but emphasized that customer renewals will be the true test of success.
Q: Regarding 99acres, should we read too much into the quarterly PBT fluctuation, and are margins expected to improve directionally? A: Hitesh Oberoi explained that the previous quarter's profit included a one-time accounting adjustment (INR20 crore), so the underlying loss was actually INR17 crore, which improved to a loss of only INR2 crore this quarter. He noted that billing growth accelerated to 17% from flat/low single digits, costs were kept under control, and competitive pressure is easing following Housing.com's acquisition. He expressed confidence that 99acres can sustain healthy growth while becoming cash-generative during FY27.
Q: Can you explain the difference between the 31% GCC billing growth mentioned on slide 9 and the 23% share on slide 36? A: Sanjeev Bikhchandani, Founder & Vice Chairman, clarified that the 31% growth figure was inflated by a one-off timing difference. Several large GCCs deferred renewals from Q4 FY26 to Q1 FY27, which boosted the quarterly growth number. Normalizing for this, GCC growth is broadly in the 15-17% range, and their share of billing distribution is around 17-18%.
Q: Are clients aware they are paying separately for AI REX, and is there a risk of cannibalization with existing products? A: Hitesh Oberoi confirmed that AI REX is sold separately at a rate card of INR3,500 per mandate for companies and INR2,500 for consultants. He acknowledged that it's still early days and some cannibalization is possible, but most clients are aware they are buying AI REX separately. The sales team has rolled out free trials to 4,000 customers in Q1 and expanded to 10,000 in Q2, with encouraging adoption and upgrade rates.
Q: How should we think about the margin trajectory for the job seeker business (Naukri 360), and can margins reach 80%? A: Hitesh Oberoi noted that the job seeker business has already seen significant margin improvement, from 35-40% EBITDA margins a year ago to around 62-65% now, driven by AI offerings and a more self-serve model. He indicated that paid subscriber conversion has improved from 1.3% to 2.6% of monthly active users over the last six quarters, and there remains substantial headroom for growth. The AI revenue run rate on the job seeker side is now approximately INR7-8 crore per month.
Q: Can you elaborate on the monetization levers for 99acres over the next 3-5 years, given easing competitive intensity? A: Hitesh Oberoi outlined that 99acres has three revenue streams: primary (new projects, ~45-47% of revenue), secondary (resale, ~45-47%), and owner listings (~7-10%). He identified two key growth opportunities: increasing monetization of owner listings (currently only a small fraction pay) and better monetizing builders in the primary market, where the company currently underperforms. The company is investing in products like 99shorts to improve builder engagement and capture more of the estimated INR5,000 crore new project market.
Q: How should we think about the pricing model for AI REX evolving over the long term, and what are the monetization metrics for TalentPulse? A: Hitesh Oberoi stated that the current per-mandate pricing model is working well to drive adoption, but it could evolve over time based on customer feedback and renewal rates. For TalentPulse, the company charges based on consumption, with different tiers (base, premium, enterprise) offering varying report types and features. The pricing is a function of how many reports customers consume, and the product now serves over 600 paid customers.
Q: How do you reconcile the sluggish JobSpeak index trends with the stronger billings growth, and has the average contract period changed? A: Hitesh Oberoi explained that JobSpeak primarily measures volume growth and doesn't capture premiumization, pricing increases, or new product contributions. The revenue growth is a function of all these factors combined. Sanjeev Bikhchandani added that the sales team is "fundamentally trying harder" with better sales calls and new product selling. There has been no change in contract duration.
Q: What is the plan for JobHai over the next 2-3 years, and how should we think about its growth trajectory? A: Hitesh Oberoi shared that JobHai generated approximately INR15 crore in revenue last year and is targeting more than doubling this year. The company is expanding from Delhi to 18 cities over the next few months. While it's currently burning close to INR50 crore annually, he believes it can reach INR100 crore in revenue in 2-3 years with good execution and become a very
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
