Info Edge, the parent firm of Naukri, Jeevansaathi, and 99Acres, reported a mixed hiring environment in Q1 FY26, with a 17 percent year-on-year rise in billings from Global Capability Centres (GCCs), even as IT services witnessed a slowdown compared to the previous quarter.
The second half of the quarter saw softness in client activity, with some companies deferring purchases, reopening contracts, and weakening collections.
CEO Hitesh Oberoi said it was difficult to pinpoint a single cause, citing factors ranging from macroeconomic uncertainty and geopolitical tensions to possible early effects of AI.
“Hard to say whether this was because of AI or what happened in Israel or between India and Pakistan… or generally, if there's softness because of demand in the US,” Oberoi added.
Two quarters ago, the company said it was expected that the GCC business to surpass IT recruitment, which proved right.
Nevertheless, Oberoi said some IT services firms are still hiring. “In some companies, we are still seeing very strong growth… in some companies, there is a little more softness… which is company by company.”
Despite the muted quarter, July trends appeared more encouraging. “Collections growth was solid, 19 percent in July, with billing growth of 13 percent,” Oberoi said, adding that pending collections were recovered in the first 10-12 days of the month.
However, he warned against extrapolating this trend. “Whether we'll be able to sustain this going forward, hard for me to say at this point in time.”
Billing growth held steady in sectors such as GCCs, retail, healthcare, manufacturing and technology, while segments like recruitment consultants, IT services, BPM, infrastructure and BFSI showed moderation. Oberoi acknowledged the abruptness of the slowdown.
“Q4 was so strong… but suddenly people pressed the brake,” he said, noting that the change happened towards the end of Q1.
While pricing actions remain on the table, the company is adopting a wait-and-watch approach. “Normally, it's easier to take price increases when there's a reasonably decent market for hiring. It's harder to push through price increases when demand is soft,” Oberoi said, adding that Naukri continues to be the “cheapest and fastest way to hire” in the market.
For the quarter ended June 30, 2025, Info Edge reported 10.6 percent YoY growth in operating revenue and a 9.1 percent increase in billing. Recruitment solutions, which include Naukri, grew 11.3 percent YoY in revenue. Margins stood at 35.4 percent for the consolidated business.
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