Info Edge Reports 12% Revenue Growth as Leadership Transition Approaches

Info Edge (India), the company behind Naukri, 99acres, Jeevansathi, Aisle and Shiksha, reported steady growth in the second quarter of FY27, supported by its recruitment, real estate and matchmaking businesses. However, its education platform continued to face challenges.

For the quarter ended September 30, 2026, consolidated revenue from operations rose 12.2% year-on-year (YoY) to Rs 903.9 crore. Consolidated profit after tax (PAT) increased 87% to Rs 649.8 crore, compared with Rs 347.5 crore in the corresponding quarter last year.

The company also announced a major leadership change. Hitesh Oberoi, who has served as Managing Director and CEO, is set to leave his full-time executive position on December 2, 2026, after nearly 27 years with Info Edge. Founder Sanjeev Bikhchandani is expected to take on a larger executive role from December 3, subject to shareholder approval.

Revenue and Profitability Improve

Info Edge operates across online recruitment, property listings, matchmaking and education services. It also holds investments in other businesses, meaning its financial results reflect both operating performance and changes in investment valuations.

Consolidated total income, including other income, grew 37.7% YoY to Rs 1,332.3 crore. Other income climbed 164.8% to Rs 428.4 crore from Rs 161.8 crore a year earlier. Meanwhile, total expenses increased at a slower pace, rising 4.5% to Rs 588.6 crore from Rs 563.5 crore.

Profit before tax, excluding exceptional items, rose 85.2% to Rs 747.7 crore. The improvement in reported profit was supported by higher other income as well as slower growth in expenses.

Of the consolidated PAT of Rs 649.8 crore, Rs 479.7 crore was attributable to Info Edge shareholders, marking a 51.6% increase from Rs 316.4 crore in the year-ago quarter.

Based on revenue, expenses, depreciation and finance costs, operating EBITDA was approximately Rs 354 crore, up 27.4% YoY. The operating EBITDA margin expanded to 39.2% from 34.5% a year earlier.

At the standalone level, revenue from operations grew 12.8% to Rs 841.7 crore. Operating profit before tax increased 29.8% to Rs 347.3 crore, while the corresponding margin widened to 41.3% from around 35.9%.

Standalone PAT, however, declined 92.9% to Rs 333.8 crore from Rs 4,720 crore in the previous year's quarter. That comparison was affected by an exceptional gain of Rs 5,200 crore recorded in the year-ago period. The gain resulted from an unrealised investment valuation increase following the amalgamation of Makesense Technologies with PB Fintech. As a result, the sharp fall in standalone profit does not reflect a comparable decline in the company's operating performance.

Recruitment Remains the Biggest Revenue Driver

The recruitment business continued to account for the largest share of Info Edge's revenue. Including acquired businesses in its operating-segment breakdown, recruitment generated approximately Rs 682 crore, or 75.4% of total revenue.

Standalone recruitment revenue increased 13.3% YoY to Rs 632 crore. Operating profit before tax rose 19.9% to Rs 374 crore, taking the segment's operating margin to 59.1%.

Recruitment billings grew 12.6% during the second quarter and 14.9% in the first half of FY27. Candidate Services recorded a particularly strong performance, with billings rising 37%.

Info Edge is also expanding its AI and data offerings for recruiters and job seekers. These products accounted for a high single-digit percentage of recruitment revenue, indicating a growing contribution from technology-led services.

99acres Gains Momentum

The real estate business, led by property platform 99acres, contributed approximately Rs 134 crore, representing 14.8% of revenue.

Revenue from the segment increased 16.7% YoY, while billings grew 21.2%. Property enquiries rose by more than 33%, and daily active users on the platform's app increased 25%.

The business also made progress in reducing losses. Its operating loss narrowed 93% to Rs 1.6 crore, while cash generated from operations increased to Rs 22 crore from Rs 2.3 crore in the corresponding period last year.

The improvement suggests that 99acres is moving towards stronger operating economics. However, maintaining this momentum and achieving sustained operating profitability remain important milestones for the business.

Matchmaking Business Continues to Grow

Info Edge's matchmaking operations, comprising Jeevansathi and Aisle, generated a combined revenue of around Rs 53 crore during the quarter. Jeevansathi contributed approximately Rs 40 crore, while Aisle accounted for Rs 13 crore.

Jeevansathi's revenue grew 16.5% YoY, and the platform reported an operating profit of Rs 2 crore.

Aisle recorded stronger revenue growth of 35.1%, while its billings increased 40%. Despite this expansion, the platform posted an operating loss of Rs 3 crore.

Across the two businesses, matchmaking billings rose 23.1% YoY, reflecting continued demand for the company's online matchmaking services.

Shiksha Faces Continued Pressure

The education business remained the weakest performer among Info Edge's main operating segments.

Shiksha generated approximately Rs 35 crore in revenue, down 8.5% YoY. Billings declined more sharply, falling 27.2%.

The company attributed the pressure to several factors, including the growing influence of AI on online search traffic, a decline in traffic referred by Google, and subdued interest among students in pursuing education in the United States.

Student preferences have also been shifting towards destinations such as the United Kingdom, Australia and Europe. These changes have affected demand and engagement on the platform.

Shiksha reported negative operating cash flow of Rs 16 crore during the quarter, highlighting the challenges facing the business.

Cash Position and Other Board Decisions

Info Edge's standalone cash generated from operations before tax increased 27.4% YoY to Rs 372.8 crore. As of September 30, 2026, the company reported a cash balance of approximately Rs 4,976 crore, including funds held by its wholly owned subsidiaries.

The board declared an interim dividend of Rs 3 per share and approved an investment of approximately Rs 150 crore in Redstart Labs, a wholly owned subsidiary.

It also approved exits from its investments in Medcords and Unnati Online. Both investments had been fully impaired in earlier years.

Leadership Change Ahead

The financial results come as Info Edge prepares for a significant change in its senior leadership.

Oberoi is scheduled to step down from his full-time role as Managing Director and CEO on December 2, 2026. Founder Bikhchandani is expected to assume the roles of Executive Vice Chairman, Managing Director and Group CEO from December 3, subject to shareholder approval.

The transition marks the end of Oberoi's nearly 27-year tenure in a full-time operating role at the company. He is expected to continue on the board as a Non-Executive, Non-Independent Director, subject to shareholder approval.

Info Edge's second-quarter performance shows continued growth in its core recruitment business, improving momentum at 99acres and steady expansion in matchmaking. At the same time, the challenges facing Shiksha and the upcoming leadership transition will remain important areas to watch as the company moves into the next phase of its growth.