Shares of Info Edge (India), the parent firm of Naukri, Jeevansaathi, and 99Acres, were positive in trade on Monday, August 11, after the firm reported a 27 percent jump in profit for the three months ended June 30, 2025.
Info Edge (India) posted a net profit of Rs 296 crore in the first quarter of FY2026, higher by 27 percent year-on-year. The firm recorded a revenue of Rs 791 crore, higher by 17 percent.
The firm 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.
At 9.20 a.m., shares were quoting Rs 1,336, higher by 0.4 percent on the NSE.
Bank of America Securities maintained its 'underperform' call, with a price target of Rs 1,300 per share. The brokerage noted that Info Edge's EBITDA for the quarter, at Rs 265 crore, missed estimates as a result of a 30 percent jump in ad spends.
Further, the management flagged strong softness in hiring across non-IT and IT services verticals. BofA Securities noted that the firm's margins could improve if revenue growth accelerates, however at the current juncture, the outlook remains uncertain.
Citi Research, too, was bearish on the counter. The international brokerage downgraded its rating on the firm to 'sell,' cutting its target price to Rs 1,220 per share. According to the Q1 billings, the growth outlook is challenging across IT and non-IT segments.
"We believe margin expansion may be limited in the near term, as growth-led investments are likely to continue and are contingent on a rebound in recruitment demand," said Motilal Oswal, reiterating its 'neutral' call.
On the flip side, Goldman Sachs maintained its 'buy' tag, with a price target of Rs 1,690, believing that despite a muted Q1, trends are likely to improve from September 2025. The brokerage expects June to be the likely bottom for India IT growth, with recovery expected ahead.
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