Just Dial shares sink 3% despite solid Q1 show as investors await cash distribution update

Over the past year, Just Dial shares have fallen 12 percent on the bourses.

Shares of search engine Just Dial Ltd slipped over three percent in trade on Wednesday, July 16, after its earnings show for the April-June period.

Just Dial reported a 13 percent year-on-year rise in net profit to Rs 160 crore for the quarter ended June 30, 2025. In the same quarter last year, the company had posted a net profit of Rs 141 crore. Revenue from operations grew 6.2 percent to Rs 298 crore, up from Rs 281 crore in the year-ago period.

Operating profit (EBITDA) increased by 7.2 percent to Rs 86.4 crore in the June quarter, compared to Rs 80.6 crore in the corresponding quarter of the previous year. The EBITDA margin for the quarter stood at 29 percent, slightly higher than the 28.7 percent recorded a year earlier.

Just Dial saw 193.2 million unique visitors during the quarter, representing a 6.6 percent increase year-on-year and a 1 percent rise sequentially. Mobile devices accounted for 86.9 percent of overall traffic. Active listings rose 10.6 percent year-on-year to 49.7 million, with 938,625 net additions during the quarter. Geocoded listings reached 34.8 million, reflecting an 18.2 percent increase over the previous year.

Nuvama Institutional Equities said that collections growth declined sharply to -19.2 percent QoQ/+0.6 percent YoY in Q1FY26, after witnessing strong growth of 21 percent QoQ/11.3 percent YoY in Q4FY25. "Given the lag between collections and revenue recognition, we expect revenue growth to moderate over coming quarters," said the brokerage.

Nuvama trimmed its target price to Rs 1,280 per share, down from Rs 1,300 earlier, but maintained its 'buy' call. "Meanwhile, Just Dial has once again deferred its capital allocation policy. If the company decides to distribute 100 percent of its annual net profit, it could offer a dividend yield of ~7 percent."

ICICI Securities stated the key question on the stock - cash distribution to shareholders - remains unanswered. Without visibility on demand recovery or shareholder payouts, re-rating triggers remain elusive. The domestic brokerage maintained 'hold' call with a target price of Rs 968.

At 12.25 p.m., shares of the firm were quoting Rs 909.75, lower by 3.3 percent on the NSE.

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