Info Edge shares in focus as Q1 PAT jumps 27% YoY. Should you buy, sell or hold?

Shares of Info Edge (India), the operator of the Naukri.com platform, are likely to be in focus on Monday after the company reported a 27% year-on-year (YoY) jump in its consolidated net profit for the June quarter (Q1FY26).

The company’s profit after tax (PAT) stood at Rs 296 crore in the quarter ended June 2025, up from Rs 233 crore in the same period last year. The figure is attributable to the equity holders of the parent company.

Revenue from operations came in at Rs 791 crore, marking a 17% increase from Rs 677 crore reported in the corresponding quarter of the previous financial year.

On a sequential basis, however, PAT fell 36% from Rs 463 crore in Q4FY25, even as revenue rose 5.5% from Rs 750 crore in the January–March period.

Total comprehensive income for the quarter was Rs 7,918 crore in Q1FY26, significantly higher than Rs 3,583 crore in Q1FY25. Profit before tax (PBT) without exceptional items stood at Rs 436 crore in the June 2025 quarter, compared to Rs 329 crore in the same period last year.

After the company’s Q1 results, here’s what brokerage firms said:

Motilal Oswal: Neutral| Target price: Rs 1,380

Motilal Oswal Financial Services (MOSL) has maintained its ‘Neutral’ rating on Info Edge and raised the target price to ₹1,380 from ₹1,350. The brokerage noted that Q1FY26 performance remained steady despite uneven hiring demand. However, margins are likely to be capped due to high marketing spend. MOSL highlighted that non-recruitment growth has offset moderation in the recruitment segment, but margin expansion in the near term appears limited. It added that growth-led investments are expected to continue and will remain dependent on a rebound in recruitment activity. MOSL has forecast FY26 and FY27 EBITDA margins at 37.8% and 40.8%, respectively, and estimates revenue and EBITDA growth for Q2FY26 at 13.1% and 4.1% year-on-year.

HDFC Securities: Buy| Target price: Rs 1,600

HDFC Securities maintained a ‘buy’ rating on the stock, with a target price of Rs 1,600.

Info Edge saw moderation in billings growth in Q1 due to macroeconomic factors and contract deferrals, with margins impacted by higher marketing spend. Standalone billings/revenue rose 15.3% YoY, while recruitment segment billings grew 9% YoY, the slowest in four quarters, and margins dropped to 52.5%.

IT services, BPM, BFSI, and infrastructure recorded low single-digit growth, while GCCs, technology, retail, healthcare, and manufacturing continued double-digit growth. Marketing costs were elevated due to IPL branding and investments in new businesses like JobHai and Naukri Gulf. Marketing spend will be maintained for 99Acres and Jeevansathi to gain market share, with recruitment billings expected to grow at ~12% CAGR over FY25–28E.

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