Info Edge profit falls 35.16% QoQ as other income drops
Operating margin rose 0.32 percentage points as revenue growth outpaced costs, but other income still made up 52.46% of pre-tax profit.
Filed 10 Aug 2026, 13:22 IST · Info Edge (India) Ltd (NAUKRI)
Key takeaways
- Consolidated net profit fell 35.16% QoQ as other income declined 42.11% and the tax rate rose 9.42 percentage points.
- Operating margin expanded 5.26 percentage points YoY as revenue grew 11.37% while expenses rose 2.57%.
- Other income contributed 52.46% of pre-tax profit, leaving reported earnings materially reliant on non-operating income.
Price around the results
Revenue momentum lifted operating margin
On a consolidated basis, revenue grew 11.37% YoY while expenses rose only 2.57%, allowing operating profit to grow 28.88% and margin to widen 5.26 percentage points. The sequential picture was more measured: revenue rose 1.35% and expenses 0.82%, resulting in a 0.32 percentage-point margin expansion. Operating margin has risen in every quarter shown, from 33.09% in Q4FY25 to 38.70% now.
Non-operating income drove the sequential profit decline
The 35.16% QoQ fall in net profit was driven chiefly by a 42.11% decline in other income, while the tax rate increased 9.42 percentage points to 22.42%. Other income represented 52.46% of pre-tax profit, so the earnings decline was sharper than the operating performance, which improved sequentially. YoY, the 46.55% increase in pre-tax profit was partly reduced at the net-profit level by the 1.96 percentage-point rise in the tax rate.
Margin remains well above the reported peer median
Info Edge's 38.70% operating margin was 25.41 percentage points above the 13.29% median for the 126 Consumer Discretionary peers that had reported the same quarter. Management said deeper Tier-2/3 penetration and additions of SMB clients led to marginally lower average realisation, a factor to track alongside the continued margin expansion.
AI initiatives and matchmaking competition remain in focus
Management said AI-Rex and Talent Pulse are showing promising early signs, and said Talent Pulse serves more than 600 paid customers with AI-powered talent intelligence. The company also said it is extending AI tools for jobseekers, including a Live AI Interviewer and an AI-powered resume builder. In matchmaking, management said competitive intensity remained high, while Jeevansathi is testing new paywalls and offerings focused on value, convenience and affordability.
No reported market reaction yet
The results are too fresh for a reported market reaction. Across eight previous result reactions, the stock rose four times and fell four times, with a median absolute move of 1.39%, indicating an evenly split historical response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹881 cr | ₹869 cr | +1.35% | +11.37% |
| Other income | ₹331 cr | ₹572 cr | -42.11% | +62.40% |
| Expenses | ₹540 cr | ₹536 cr | +0.82% | +2.57% |
| Operating profit | ₹341 cr | ₹333 cr | +2.21% | +28.88% |
| Operating margin (%) | 38.70% | 38.38% | — | — |
| Interest | ₹6 cr | ₹7 cr | -11.58% | -5.01% |
| Depreciation | ₹34 cr | ₹30 cr | +13.54% | +11.01% |
| Profit before tax | ₹632 cr | ₹869 cr | -27.28% | +46.55% |
| Tax | ₹142 cr | ₹113 cr | +25.41% | +60.60% |
| Net profit | ₹490 cr | ₹756 cr | -35.16% | +42.93% |
| EPS (₹) | ₹6.88 | ₹8.73 | -21.19% | +50.55% |
Operating margin of 38.70% compares with a Consumer Discretionary sector median of 13.29% across 126 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New products
- Naukri offers a Live AI Interviewer for real-time interview practice.
- Naukri has an AI-powered resume builder.
New initiatives
- AI-Rex and Talent Pulse are showing promising early signs.
- Talent Pulse provides AI-powered talent intelligence and serves more than 600 paid customers.
- The company is extending AI tools to help jobseekers make smarter career decisions.
- Jeevansathi is testing new paywalls and launching offerings focused on value, convenience and affordability.
Competition
- 99acres translated its market leadership into growth.
Problems & risks
- Competitive intensity remained high in matchmaking, with rivals launching new ad campaigns in North India.
- Deeper Tier-2/3 penetration and SMB client additions resulted in marginally lower average realization.
What to watch
- Whether operating margin remains above 38.70% as SMB additions and Tier-2/3 expansion continue.
- Whether other income's 52.46% share of pre-tax profit declines.
- Whether Talent Pulse's paid customer base moves beyond 600.