Info Edge Share: Can It Sustain Growth Momentum Despite AI Disruptions and Slower Hiring Trends?

Synopsis: Info Edge (India) Ltd continued showing steady growth across recruitment and digital platforms while focusing on AI-led expansion, operational improvement, and strengthening long-term monetisation despite softer hiring conditions. 

The share of this mid cap company owns various brands in different fields like naukri.com (online recruitment), 99acres.com (online real estate), jeevansathi.com (online matrimonial) as well as shiksha.com (online education information services), were in focus after the brokerage sees 35 percent upside potential. 

With the market capitalization of Rs. 65,497 Crores, the shares of Info Edge (India) Ltd were trading at around Rs. 1,010 per share which is 35 percent discount from its 52 week high of Rs. 1550 per share and is trading at a P/E of 46 where as industry P/E stands at 25.6 

Brokerage View: 

Mirae Asset Sharekhan has retained its “Buy” rating on Info Edge (India) Ltd with a revised target price of Rs. 1,360, implying an upside potential of nearly 35 percent  from the current market price of Rs. 1010. The brokerage lowered its valuation multiple due to near-term risks from AI-led disruption, slower hiring activity, and moderation in billings growth.However, it continues to remain positive on the company because of its leadership position across recruitment and classifieds businesses, strong cash generation, improving traction in 99acres, and continued investments in AI-driven products and services that are expected to support long-term growth. 

Recruitment Business Continues to Support Growth

The recruitment business remained the biggest growth driver for the company during FY26. Recruitment billings, including Zwayam and DoSelect, grew 9 percent  YoY to Rs. 2,461 Crore, while revenue increased 13 percent  YoY to Rs. 2,343 Crore. Operating profit rose 14 percent  YoY to Rs. 1,277 Crore with margins staying strong at 57 percent . The segment also generated healthy cash flow of Rs. 1,513 Crore during the year. Although management highlighted that hiring sentiment remains cautious across sectors because of macro uncertainty and geopolitical concerns, demand remained stable in selective areas like AI and machine learning roles.

Strong Q4FY26 Financial Performance

The company reported better-than-expected quarterly performance in Q4FY26. Revenue rose 17.2 percent  YoY to Rs. 805 Crore, while EBIT increased 38.6 percent  YoY to Rs. 328 Crore. EBIT margins improved to 40.7 percent , supported by better operational efficiency and lower marketing costs. Profit after tax stood at Rs. 293 Crore, up 18.4 percent  YoY. Billing performance also remained stable, with standalone billings rising 7 percent  YoY to Rs. 1,057 Crore during the quarter despite a softer overall hiring environment. 

99acres Gains Stronger Market Position

The real estate business continued improving steadily with 99acres strengthening its traffic leadership across web and app platforms. FY26 billings for the segment increased 10 percent  to Rs. 497 Crore, while revenue rose 19 percent  to Rs. 488 Crore. Management also implemented structural changes in the sales organisation during the quarter, which temporarily affected billings but are expected to support long-term growth and monetisation.

Jeevansathi and Other Platforms Show Improvement

Jeevansathi reported healthy growth with Q4 billings rising 21 percent  YoY to Rs. 38.6 Crore, while revenue increased 18.9 percent  to Rs. 36 Crore. The combined Jeevansathi and Aisle portfolio recorded FY26 billings growth of nearly 28.6 percent  YoY to Rs. 142.5 Crore alongside improving profitability. The education platform Shiksha faced pressure from AI-driven changes in search behaviour, leading to lower traffic and weaker billing growth. To counter this, the company is investing in AI-led voice solutions and counselling services while also expanding focus towards markets like the UK, UAE, and Europe.

AI Investments and Long-Term Strategy

Info Edge is increasing investments in AI-led innovation across businesses to improve matching efficiency, automate workflows, and create new revenue opportunities. The company is also focusing on increasing engagement, customer spending, and operating leverage across recruitment, real estate, matrimony, and education platforms. InfoEdge Ventures highlighted that a significant portion of its investment portfolio now includes deep-tech and AI-focused businesses with sustainable competitive advantages.

Cash Position and Outlook

The company maintained a strong balance sheet with cash reserves of Rs. 4,963 Crore at the end of FY26. Management stated that moderation in deferred revenue growth is mainly linked to slower billing growth compared to FY25 and not due to any structural weakness. While near-term growth may remain slightly softer because of cautious hiring trends and AI-related disruption in some segments, the company expects long-term growth to be supported by market leadership, platform scale, network effects, and AI-led monetisation opportunities 

Conclusion: 

Info Edge (India) Ltd continues to maintain strong leadership across recruitment, real estate, matrimony, and education platforms despite facing softer hiring demand and rising AI-led disruption risks. The company delivered healthy revenue growth, margin improvement, and strong cash generation during FY26 while continuing investments in AI-driven products and platform expansion. Although near-term growth may remain moderate due to cautious market conditions, improving traction in 99acres, stable recruitment demand, and long-term monetisation opportunities supported by AI and network effects keep the company well positioned for sustained future growth. 

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