Info Edge reported solid performance for Q3 FY26, with standalone billings growing 12% YoY to Rs. 747 crores and revenue up 14% YoY to Rs. 765 crores. Operating profits grew 13% YoY. The company announced a revised dividend payout ratio of up to 65% of PAT. Recruitment saw strong momentum, while the matchmaking portfolio is nearing break-even.
Standalone Financial Performance
For the quarter ending December 31, 2025 (Q3FY26), Info Edge’s standalone business demonstrated healthy growth. Billings reached Rs. 747 crores, marking a 12% Year-over-Year (YoY) increase, while revenue grew 14% YoY to Rs. 765 crores. Operating profits at the standalone level increased by 13% YoY to Rs. 297 crores, maintaining strong operating margins at 39%. Cash generated from operations before taxes stood at Rs. 376 crores for the quarter. Over the first nine months of FY26, standalone revenue grew 14% YoY to Rs. 2,247 crores.
Shareholder Returns and Capital Allocation
The Board approved a significant enhancement to shareholder returns by revising the dividend payout ratio up to 65% of Profit After Tax (PAT), a notable increase from the previous year’s 39% payout. A second interim dividend of Rs. 2.40 per share was also approved, reflecting the company’s strong financial health and consistent cash generation.
Recruitment Segment Deep Dive
The core recruitment business showed resilience despite a challenging hiring environment. Standalone recruitment billings grew 11% YoY to Rs. 548 crores, with revenue up 14% YoY to Rs. 575 crores. The standalone operating profit for this segment grew 15% YoY to Rs. 341 crores, with an operating profit margin of 59%. The overall Naukri platform now hosts approximately 113 million resumes, adding an average of 20,000 resumes daily during Q3FY26.
Hiring Trend Analysis
Management noted that growth remains robust in the premium segment (CTC > Rs. 30 lakhs) and the value segment (CTC < Rs. 5 lakhs). The mid-segment (Rs. 5 to Rs. 30 lakhs CTC) volume growth has moderated to about 4% YoY. The company is seeing success with agentic AI tools like AI-Rex, which has already served over 100 clients and closed 20,000 job mandates, significantly reducing sourcing time.
Real Estate and Matchmaking Updates
The real estate segment saw billings grow 14% YoY to Rs. 117 crores in Q3FY26, though it continued to report operating losses of Rs. 20 crores for the quarter. The business is focusing on strengthening supply leadership, with live resale/rental listings growing 41% YoY. In the matchmaking business, Jeevansathi billings grew 29% YoY to Rs. 36 crores. The combined matchmaking portfolio (Jeevansathi plus Aisle) reduced operating losses by 60% to Rs. 4 crores in Q3, operating near break-even.
Education Business Pivot
The education business posted billings of Rs. 46 crores (up 4% YoY). The domestic Shiksha business is facing softness due to the impact of AI, leading to a sharp drop in traffic. Management is pivoting the model towards counselling and marketing services to build more resilient revenue streams and mitigate AI-related risks.
Focus on AI and Future Strategy
AI initiatives are central to Info Edge’s strategy, focusing on enhancing search quality, personalization, and productivity across all verticals. The company highlighted its structural strengths, including vast proprietary behavioral data, which positions it uniquely against global peers. The goal is to leverage AI to maintain competitive advantages and unlock new revenue streams across Naukri, 99acres, and Jeevansathi.
Source: BSE
