Naukri.com parent reports 32% jump in net profit
What's the story
Info Edge, the parent company of popular job portal Naukri.com, has reported a whopping 32% jump in net profit for the quarter ending June 30. The company's net profit for the period stood at ₹342.8 crore, compared to ₹258.8 crore in the same quarter last year. The growth was largely driven by revenue increases in both recruitment and non-recruitment sectors.
Financial growth
Total income up, but expenses also increase
Info Edge's total income for the quarter also saw a significant jump, rising to ₹1,004 crore from ₹827 crore in the same period last year. However, expenses also increased during this period. They rose to ₹563.8 crore from ₹484.5 crore in Q1 FY26. Employee benefit expenses and advertising costs surged 11.7% and 26.8%, respectively, during this period compared to the previous fiscal year quarter.
Business performance
Slowdown in core recruitment business
Despite the overall growth, Info Edge's core recruitment business saw a slowdown. Billings from this segment grew 9% YoY to ₹470 crore, down from an 18.4% jump in the previous quarter. Managing Director and CEO Hitesh Oberoi attributed this slowdown to macroeconomic challenges such as geopolitical uncertainties and sector-specific demand softness affecting companies' investment decisions.
Portfolio performance
Strong growth in non-recruitment portfolio
Unlike the recruitment business, Info Edge's non-recruitment portfolio has shown strong growth. This segment, which includes real estate listing platform 99acres, matrimony service Jeevansathi, and education portal Shiksha, recorded a combined billing growth of 17.6% during the quarter. Oberoi said that despite the recent moderation in recruitment billings, they remain cautiously optimistic about growth momentum in upcoming quarters.
Revenue growth
Recruitment solutions revenue up by 15%
The recruitment solutions business, including Naukri.com, saw a 15% YoY increase in revenue to ₹562 crore. Meanwhile, 99acres's revenue also rose by 12% to ₹110.6 crore. Other businesses such as Jeevansathi and Shiksha witnessed an impressive growth of 30%. Oberoi observed that while artificial intelligence (AI) adoption is still in its early stages, there is a noticeable softness in demand with more premium talent being sought after than regular job seekers.