Info Edge's shares soared to Rs 1,217.80 on the NSE on Wednesday, marking a five-month high following a robust Q1 business update. The company's market capitalisation increased by over Rs 12,456 crore, reaching nearly Rs 78,740 crore, driven by a 14% year-on-year rise in standalone billings.
In its Q1 FY27 update, Info Edge reported standalone billings of Rs 737 crore, up from Rs 644.2 crore in the same period last year. The recruitment solutions segment saw an 18% YoY increase to Rs 553 crore, while 99acres posted a 17% rise to Rs 110 crore. Jeevansathi and Shiksha recorded a 14% rise and a 23% fall in billings to Rs 40 crore and Rs 35 crore, respectively.
Brokerage firms have reacted positively to Info Edge's performance. Nomura highlighted that Naukri's 18% YoY growth in billings exceeded its expectations of a 10% rise. The 17% growth in 99acres also surpassed Nomura's forecast. Nomura maintained a 'Buy' rating with a target price of Rs 1,320, suggesting a 14% upside.
“Naukri billing growth in Q1 FY27 improved its trend seen in FY26 and specifically Q4 FY26. We think premium hiring with higher ARPUs and a renewed focus on consumer business may have led to this strong growth despite a possible weakness in the Middle East market due to the ongoing conflict.”
Nomura
Goldman Sachs also maintained a 'Buy' rating, increasing its target price to Rs 1,400, indicating a 21% potential upside. The firm adjusted its FY27-29 revenue estimates upward by up to 3% and net income estimates by up to 4%. Citi upgraded its rating to 'Buy' from 'Sell', with a target price of Rs 1,400.
Nomura noted, "Naukri billing growth in Q1 FY27 improved its trend seen in FY26 and specifically Q4 FY26. We think premium hiring with higher ARPUs and a renewed focus on consumer business may have led to this strong growth despite a possible weakness in the Middle East market due to the ongoing conflict."
Background
Info Edge's recent performance reflects a broader trend of recovery in the recruitment and real estate sectors. The company's strategic focus on premium hiring and new AI-led offerings has positioned it well in the market.
Looking ahead, investors will be watching Info Edge's ability to sustain its growth momentum and how it navigates potential challenges in international markets. The company's focus on innovation and expansion in key segments will be crucial for its continued success.
