Neutral Info Edge; target of Rs 1300: Motilal Oswal

Motilal Oswal's research report on Info Edge

Info Edge’s (INFOE) standalone revenue stood at INR7.4b in 2QFY26, up 13.7% YoY/1.3% QoQ, in line with our estimate of ~INR7.4b. EBITDA margin came in at 39.6% (up 6.3% QoQ/7.7% YoY), above our estimate of 37.8%. Total billings rose 12% YoY to INR7.3b. Adj. PAT was up 10% YoY to INR2.6b (vs. our est. of INR2.6b). In 1HFY26, revenue/EBITDA/adj. PAT grew 14.5%/9.4% /10.8% YoY. In 2HFY26, we expect its revenue/EBITDA/adj. PAT to grow 13.1%/8.6%/9.2% YoY. We reiterate our Neutral rating with a TP of INR1,300, implying a 6% downside.

Outlook

We value the company’s operating entities using DCF valuation. Our SoTP-based valuation indicates a TP of INR1,300. Reiterate Neutral.