Naukri parent Info Edge's stock gets positive brokerage nod as Q2 results impress

Info Edge is one of the most profitable franchises and a long-term play in the internet space in India, according to Nuvama.

Info Edge shares gained momentum, rising over 3% after the company posted a robust Q2 performance, prompting brokerages to maintain a bullish outlook. Analysts cited continued strength in recruitment billings, growth across its real estate and matrimony segments, and steady billing gains as key growth drivers for the stock.

Info Edge delivered a strong quarter on all counts. The Naukri parent company reported revenue of Rs 660 crore, aligning with market expectations. Its EBITDA margin, however, impressed at 41.8%, surpassing Street forecasts. Adjusted PAT, accounting for exceptional items and deferred tax, aligned at Rs 240 crore.

Looking ahead, analysts at Nuvama anticipate further improvement in billing growth, driven by a rise in IT Services hiring, sustained high utilization, and lower-than-average attrition rates.

Nomura has assigned a 'Buy' rating on Info Edge stock with a target price of Rs 8,630 per share. The firm highlighted continued strength in Info Edge’s recruitment segment, noting a healthy recovery that supports its positive outlook.

Billing growth in the real estate business also remained steady, while the company’s matrimony and education segments continued to expand. However, Nomura adjusted its EPS estimates for FY26-27, reducing them by 5% due to revised expectations.

Meanwhile, Citi raised its target price for Info Edge to Rs 8,850 per share, retaining a 'Buy' recommendation after the company’s Q2 results came in solid. Revenue met expectations, while EBITDA surpassed estimates by 3%, showcasing operational strength.

Citi expects recruitment billing growth to accelerate in Q3, driven by improving hiring activity on Naukri, Info Edge’s flagship platform for job seekers.

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Both brokerages highlighted Info Edge’s potential for further growth, with optimism around recruitment sector recovery and steady performance across various business verticals.

Info Edge is one of the most profitable franchises and a long-term play in the internet space in India, according to Nuvama. It has the potential to establish a market-leading position and capitalise on the increasing online adoption, the brokerage noted.

"The recruitment industry continues to remain robust given the strong demand for digital talent and large number of job opportunities on the back of economic expansion. With near monopolistic position in the recruitment vertical, IEL is well positioned to capitalise on the growth," it said.

The early-stage investments in Zomato, PolicyBazaar, demonstrated an astute capital allocation track record of the management. Strong cash on the books, and AIF gives an opportunity to investors to participate in emerging internet companies, Nuvama added.

A slowdown in IT hiring, Slower than anticipated scale-up of non-recruitment segments, Continuing losses in the real estate and matrimony segments as a result of high competitive intensity, and Increasing losses from investee companies remain the key risks for the stock.

As of 9:45 am, Info Edge shares were trading 3% higher at Rs 7,885.20 on the National Stock Exchange (NSE). The stock has rallied approximately 53% so far this year, outpacing Nifty's 10% gain.

Over the past 12 months, the stock has risen 50%, while Nifty rose 74% during the same period

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