Neutral Info Edge; target of Rs 1380: Motilal Oswal

Motilal Oswal's research report on Info Edge

Info Edge (INFOE)’s standalone revenue stood at INR7.4b, up 15.3% YoY/ 7.2% QoQ, in line with our estimate of ~INR7.4b. EBITDA margin came in at 37.7% (flat QoQ/down130bp YoY), below our estimate of 40.7%. Overall billings rose 11.2% YoY and stood at INR6.4b. Adj. PAT came in at INR2.6b (below our est. of INR2.8b. In 1QFY26, INFOE’s revenue/EBITDA grew 15.3%/11.4% YoY. We expect its revenue/EBITDA to grow 13.1%/4.1% YoY in 2QFY26. We reiterate our NEUTRAL rating with a TP of INR1,380, implying a 4% upside.

Outlook

We value the company’s operating entities using DCF valuation. Our SoTP-based valuation indicates a TP of INR1,380. Reiterate Neutral.