NAUKRI - Info Edge(India) Ltd. Share Price

The management of Info Edge (India) Limited provided an optimistic outlook during the earnings conference call for Q3 FY26. They reported standalone billings of Rs. 747 crores, achieving a year-over-year growth of 12%, while revenue was Rs. 765 crores, a 14% increase. Operational profits rose by 13% to Rs. 297 crores, with operating margins at 39%. Cash generated from operations before taxes was Rs. 376 crores.

For the first nine months of FY26, billings totaled Rs. 2,120 crores, reflecting a 12% YOY growth, while revenue increased to Rs. 2,247 crores, also up 14%. Operating profits grew to Rs. 815 crores, and the cash balance at year-end stood at Rs. 4,825 crores. Management announced a revised dividend payout ratio of up to 65% of PAT, an increase from the last year's 39%, along with a second interim dividend of Rs. 2.40 per share.

Management highlighted forward-looking strategies, emphasizing growth across segments, particularly in premium hiring, which is expected to increase faster due to targeted offerings like Naukri Top Tier. The hiring environment remains challenging, particularly in BFSI and retail sectors, while healthcare and manufacturing continue to grow. The rollout of AI-led solutions, such as AI-Rex, is anticipated to enhance recruiter productivity and operational efficiency.

Management also noted the need to adjust strategies in their education business, focusing on counseling services to mitigate AI-related impacts. They emphasized a commitment to investing in technology and AI capabilities while targeting smaller strategic acquisitions to enhance their market position and competencies.

Overall, the management outlook reflects confidence in sustaining growth across various segments, leveraging technology and improved market strategies, while maintaining a focus on shareholder returns through increased dividends.

Based on the provided earnings transcript from Info Edge (India) Limited's Q3 FY2026 Conference Call, here are the major questions and their detailed answers:

1. Question: "Hitesh, just want to double-click and get a little bit more clarity in terms of the hiring segments, what you mentioned, premium, mid-level. Wanted to understand... how are you actually seeing the hiring trends out here?"

   Answer: Our overall sense of the market is that volume growth continues to be robust in the premium and value segments. For premium (over Rs. 30 lakhs) and value (under Rs. 5 lakhs), demand remains strong. However, mid-segment salaries between Rs. 5 to Rs. 30 lakhs have moderated to about 4% growth. The hiring landscape remains uncertain, reflecting broader economic conditions.

2. Question: "Hitesh, how things are picking up in AI-Rex and also a bit on Neo? Would love to actually understand how the adoption of agentic AI has been for you guys?"

   Answer: Adoption is still in early stages; about 100 clients are experimenting with AI-Rex, totaling over 20,000 mandates processed. We're fine-tuning our go-to-market strategy and focusing on increasing client usage. Immediate goals include enhancing adoption and productivity, with revenue expected to follow from successful client engagement.

3. Question: "Can you help us explain a bit more in terms of how India is and Naukri is different as compared to global peers?"

   Answer: India's hiring dynamics differ from global models, primarily relying on database searches rather than job postings. While global models get fewer applications, Indian firms get overwhelmed with applications, leading to a preference for database hiring over job postings. This unique environment favors our platform, increasing its value amid potential spam from AI-driven applications.

4. Question: "Hitesh, our YTD sales growth in the non-hiring segment is close to seven percent. We've seen a sharp slowdown compared to the last year. Is this due to client decisions?"

   Answer: Yes, the sales growth in non-hiring is slow, primarily due to a few clients not renewing contracts, likely for internal reasons. The economy's current state plays a role; as it improves, hiring in these sectors should recover. It's less about AI and more linked to cyclical economic conditions affecting client behavior.

5. Question: "What's the challenge with Zwayam and DoSelect? Their billing is growing at a slower pace than the core business."

   Answer: We have been experimenting with different go-to-market strategies and offerings for Zwayam and DoSelect. This adjustment period may temporarily slow growth as we assess market fit and client uptake. We expect to see improved adoption as we refine our approach over the coming quarters.

6. Question: "JobHai is incurring losses of Rs. 50 crores a year. What's your strategy there?"

   Answer: Despite incurring losses, we see strategic importance in developing JobHai. We have focused on the Delhi NCR region to build a strong market presence. We aim to leverage our growing position to increase monetization over time, targeting other major cities gradually while maintaining our market leadership.

7. Question: "How is the operating environment for startup funding? Are your investees seeing any funding improvement?"

   Answer: The funding landscape shows winners emerging among the portfolio, particularly in Funds One and Two. Several companies have secured follow-on funding, demonstrating resilience despite earlier challenges like tariffs. We require a few big winners from each fund to ensure successful returns.

These encapsulate the key inquiries and responses during the Q&A segment of the earnings call, succinctly outlining the company's position on various topics.