Info Edge recruitment growth and AI monetisation strengthen earnings outlook as 99acres nears profitability

Investment View and Valuation

In its August 11, 2026 result update, ICICI Securities maintained its BUY rating on Info Edge (India) Ltd., citing strong recruitment growth, incremental AI-led monetisation and a narrowing path to profitability at 99acres. The broker values Info Edge using a sum-of-the-parts methodology and sets a 12-month target price of Rs 1,600.

ICICI Securities identified slower-than-expected revenue and margin expansion, and slower conversion of billings into revenue, as key risks.

Q1 FY27 Financial Performance

Reported PAT declined because of an exceptional item of Rs 72 crore. Adjusted PAT increased 21.8% year-on-year to Rs 317.6 crore.

Naukri Recruitment Business Shows Broad-Based Growth

Naukri represented about 74% of standalone revenue and generated Q1 FY27 revenue of Rs 612 crore, up 13.0% year-on-year. Recruitment billings rose 17.5% year-on-year to Rs 553 crore, or about 15% after adjusting for renewal timing.

Growth was broad based across customer segments. GCCs grew 31%, Tech, IT and BPM grew 15%, and other sectors grew 12%, while recruitment consultants grew 1%. Naukri B2C billings increased 35% and Naukri Gulf billings rose 12%. Premium CV views increased by more than 25%, although management identified mid-market hiring volumes as the key challenge. Recruitment EBITDA margin was 58.3%, down about 190 basis points quarter-on-quarter.

AI-Led Monetisation and Operating Efficiency

Management highlighted AI-Rex and Talent Pulse as important new monetisation avenues. AI-Rex was live with more than 4,000 customers and had over 400 paying customers, while Talent Pulse had more than 600 paying customers. Newer offerings contributed roughly one-third of incremental recruitment growth.

AI-Rex is priced at Rs 3,500 per corporate mandate and Rs 2,500 for consultants. Management plans to extend free trials to 10,000 large customers before refining pricing based on renewal and adoption.

Naukri's database reached about 118 million resumes, with more than 25,000 profiles added daily. Management also cited AI-driven efficiency gains of 15% to 20% in certain internal functions.

99acres Moves Towards Profitability

99acres accounted for around 16% of standalone revenue and delivered 16.5% billings growth and 17.3% revenue growth year-on-year. Revenue was Rs 130 crore, while its operating loss narrowed sharply to Rs 2.1 crore.

Its web, app and iOS traffic-time shares were 49%, 55% and 69%, respectively. App daily active users and property enquiries increased 38% year-on-year. Broker resale and rental listings rose 30%, new-project listings increased 27%, and owner listings grew 23%.

Management expects 99acres to become cash generative in FY27, supported by disciplined marketing, better monetisation and easing competitive intensity. It targets long-term margins of 25% to 30%.

Matchmaking and Shiksha Trends

The matchmaking portfolio continued to improve, with Jeevansathi plus Aisle billings rising 20.3% year-on-year.

In contrast, Shiksha billings declined 22.8% and revenue declined about 12%, as AI-led changes in search behaviour reduced referred traffic. Management expects these Shiksha headwinds to persist in the near term.

Earnings Estimates and Outlook

ICICI Securities raised its FY27E and FY28E EBITDA estimates by 4.0% and 5.4%, respectively, reflecting higher projected margins. The broker forecasts FY26 to FY28E revenue CAGR of 14.7% to Rs 4,012 crore, with EBITDA margins of 43.2% in FY27E and 43.8% in FY28E.

Key Risks

• Slower-than-expected revenue and margin expansion.
• Slower conversion of billings into revenue.
• Persisting near-term headwinds to Shiksha from AI-led changes in search behaviour and reduced referred traffic.