Revenue Up 11%, Profit Soars 44% Year on Year; Sequential Easing Tied to Elevated Prior Quarter and Higher Tax

Info Edge (India) Limited reported operating revenue of ₹880.75 crore for the quarter ended 30 June 2026, an 11.37% increase over the same period last year. Pre-tax profit climbed 44.22% to ₹628.21 crore as total expenses grew just 2.94%. Sequentially, profit declined from the prior quarter’s elevated level, primarily due to a lower contribution from non-operating income and a higher effective tax rate, even as revenue inched up.

Revenue from operations increased to ₹880.75 crore in the quarter ended 30 June 2026, representing an 11.37% rise compared to ₹790.86 crore in the same quarter last year. On a sequential basis, revenue grew by 1.35% from ₹869.01 crore in the preceding quarter.

The sequence of quarterly revenue growth shows steady expansion with varying intensity. Sequential growth rates were 1.84% in the second quarter, 1.73% in the third quarter, accelerated to 6.05% in the fourth quarter, and moderated to 1.35% in the current quarter. While the latest step-up is the smallest in the five-quarter series, the absolute revenue level remains at a new high. Reported segment revenue equaled total operating revenue, indicating that intersegment eliminations did not reduce the top line.

Total expenses rose to ₹580.44 crore, an increase of 2.94% year over year and 1.34% sequentially from ₹572.79 crore. This growth rate in costs was significantly lower than the 11.37% growth in revenue, widening the gap between income and costs.

The expense-to-revenue ratio has trended lower across the five available quarters. In the first quarter of FY2026, expenses consumed 71.3% of revenue. By the first quarter of FY2027, this ratio had fallen to 65.9%. The sequential expense growth closely tracked the sequential revenue growth, indicating that the lower expense ratio stabilized at the fourth-quarter level rather than improving further in the current period.

Pre-tax profit stood at ₹628.21 crore, up 44.22% year over year but down 27.16% from the ₹862.46 crore recorded in the previous quarter. A comparison of pre-tax profit against the difference between revenue and total expenses highlights a substantial component of income outside the core operating cost structure.

In the current quarter, revenue minus total expenses equals ₹300.31 crore. Reported pre-tax profit was ₹628.21 crore, leaving a difference of ₹327.90 crore. Other income of ₹192.26 crore was recorded for the quarter, with the remaining difference attributable to additional non-operating inflows and accounting adjustments. In the prior quarter, this difference was ₹566.24 crore. The sharp sequential decline in pre-tax profit is therefore driven by the normalization of this non-operating component from the fourth-quarter peak, while the operating surplus (revenue minus expenses) actually edged upward.

Tax expense increased to ₹141.65 crore, a rise of 60.59% year over year and 25.41% sequentially. The effective tax rate in the current quarter was 22.55%, calculated as tax expense divided by pre-tax profit.

This rate is notably higher than the 13.09% effective rate in the fourth quarter and slightly above the 20.25% rate in the first quarter of the prior year. The shift in the tax rate explains why net profit fell more sharply (-35.16%) than pre-tax profit (-27.16%) on a sequential basis. Year over year, net profit grew by 42.93% to ₹490.05 crore, tracking closely with the 44.22% growth in pre-tax profit despite the higher tax burden. Basic earnings per share rose 50.55% to ₹6.88, outpacing net profit growth, which indicates a reduction in the weighted average number of shares outstanding compared to the prior year.

Revenue grew 11% over the past year while expenses rose just 3%, lifting pre-tax profit 44%. Sequentially, profit fell as the prior quarter included a much larger contribution from non-operating income and the effective tax rate increased. Operating revenue continued to expand, and basic earnings per share rose 50.6%, implying a smaller share count. The company’s profitability structure consistently includes a meaningful portion of income outside its stated operating revenue and expenses, which drives quarterly variation in reported profit.

1. Core Recruitment Business

Category: B2B Services
The company holds a leadership position in online recruitment through its flagship platform, Naukri.com, connecting job seekers with employers.

Key Products & Services: Naukri.com

2. Internal Portfolio of Classifieds

Category: Consumer Tech
Info Edge develops and operates online platforms in key classifieds segments including real estate, matrimony, and education.

Key Products & Services: 99acres.com • Jeevansathi.com • Shiksha.com

3. Strategic Investments

Category: Financial Services
Info Edge functions as an investor, providing supervisory and supporting roles to entrepreneurs managing day-to-day operations of various startups.

Key Products & Services: Zomato • PolicyBazaar

Core Thesis: The company emphasizes digital advertising, subscription-based services, and premium offerings tailored to meet the evolving needs of both users and businesses.

Integration & Growth Pillars

• Product Development: Info Edge focuses on developing device-agnostic products and continuously updating its mobile applications to enhance user experience and engagement. • Infrastructure: Its backend APIs and services infrastructure have been re-architected to support rapid feature launches across diverse devices and platforms.