ICICI Securities has reiterated a “BUY” recommendation on Info Edge (India) Limited with a 12-month target price of Rs 1,270, implying an upside potential of nearly 37% from the current market price of Rs 930. The brokerage believes the company’s diversified digital ecosystem, improving profitability across non-recruitment businesses, and expanding AI-led monetisation opportunities continue to reinforce its long-term structural growth narrative. Despite persistent weakness in the broader hiring environment, Info Edge delivered resilient quarterly growth, supported by strong traction in Naukri, improving operational leverage in 99acres, and continued momentum across Jeevansathi and newer digital initiatives.

ICICI Securities Maintains Bullish View On Info Edge

Info Edge continues to demonstrate resilience in a challenging macro environment. The owner of flagship platforms such as Naukri.com, 99acres, Jeevansathi, and Shiksha reported a healthy operational performance for Q4FY26, despite subdued enterprise hiring trends and AI-led disruptions in online education traffic.

ICICI Securities noted that the company’s ability to maintain growth momentum in recruitment while simultaneously improving profitability in adjacent businesses positions it favourably for long-term value creation.

The brokerage highlighted that Info Edge’s early-stage strategic investments in companies such as Eternal (formerly Zomato) and PB Fintech continue to strengthen the company’s broader digital ecosystem and investment portfolio.

Quarterly Revenue Growth Remains Healthy

Info Edge reported consolidated Q4FY26 revenue of Rs 805.1 crore, registering growth of 17.2% year-on-year and 5.3% sequentially. Including acquired businesses such as DoSelect and Zwayam, revenues stood at Rs 832 crore.

For the full fiscal year FY26, total revenue came in at Rs 3,052 crore, reflecting a strong 15% annual increase.

The company’s EBITDA surged to Rs 349.7 crore during the quarter, rising 35% YoY. EBITDA margins improved sharply to 43.4%, expanding by 575 basis points compared to the same period last year. Net profit for the quarter stood at Rs 309.1 crore, up 21% YoY.

Naukri Business Shows Structural Strength

The recruitment vertical remained the core earnings engine for Info Edge. Naukri contributed nearly 72% of the company’s overall revenue mix during the quarter.

The segment reported revenue growth of 13.7% YoY to Rs 581 crore, while billings increased 9.5% to Rs 810 crore despite muted hiring conditions across the IT sector.

ICICI Securities noted that hiring activity across Tech, IT, and BPM segments rose 6% YoY, while recruitment consultants and diversified sectors continued to post healthy growth. However, Global Capability Centres (GCCs) remained soft during the quarter.

Importantly, the company’s database has now crossed 115 million resumes, with approximately 21,000 new resumes added daily.

Management also highlighted strong traction in AI-led offerings such as:

• AI-Rex recruitment tools
• Mock interview products
• Resume builders
• Naukri 360 self-serve recruitment solutions

The brokerage believes these AI-enabled products could emerge as meaningful monetisation levers over the next several years.

99acres Emerges As A Key Growth Driver

Info Edge’s real estate platform 99acres delivered one of the strongest performances during the quarter.

Revenue from the segment surged 35.8% YoY to Rs 143.7 crore, while the platform continued gaining traffic market share across major Indian cities.

According to management commentary, 99acres now commands approximately:

• 49% traffic share in Q4FY26
• 52% traffic share in April 2026

The business also achieved an important operational milestone by turning EBITDA positive during the quarter, aided partly by one-time provision reversals and improving monetisation efficiency.

Management remains optimistic about the platform’s long-term potential and has guided for:

• Doubling of billings over the next three years
• Traffic share approaching 60%
• Long-term EBITDA margins of 25%–30%

ICICI Securities believes the improving economics of 99acres could significantly strengthen consolidated profitability going forward.

Jeevansathi And Aisle Continue To Scale Up

The matrimony and dating vertical also delivered encouraging numbers.

Jeevansathi recorded billings growth of 21% YoY, while revenues rose nearly 19% annually. The business generated positive cash flow during the quarter, indicating improving operating efficiency.

Meanwhile, Aisle — Info Edge’s dating app platform — posted growth exceeding 30%, while Arike, the Malayalam-focused matchmaking application, expanded even faster.

Management indicated that Jeevansathi has emerged as a leading platform in Hindi-speaking markets with over 45% profile share in terms of logged-in users.

However, pricing competition remains elevated as rivals continue aggressive discounting strategies.

Shiksha Faces AI-Led Search Disruption

The education vertical remained the weakest segment operationally.

Although Shiksha revenues increased 11.1% YoY, billings declined nearly 13% due to AI-driven changes in online search behaviour.

Management acknowledged that Google AI summaries and chatbot integrations are reducing conventional traffic flows to education portals. To counter this trend, the company is investing in:

• AI voice bots
• Domestic counselling services
• Expanded international destination offerings
• Enhanced student engagement tools

The brokerage believes the segment may continue facing near-term challenges until traffic monetisation stabilises in the evolving AI-search ecosystem.

Financial Outlook And Valuation

ICICI Securities expects Info Edge to maintain healthy double-digit growth over the medium term.

The brokerage estimates revenue CAGR of 14.3% between FY26 and FY28, with EBITDA margins expected to improve steadily toward 41.8%.

The brokerage maintained its valuation using the Sum-of-the-Parts (SOTP) methodology and reiterated its BUY stance with a target price of Rs 1,270.

Key Risks Investors Should Monitor

Despite the optimistic outlook, ICICI Securities highlighted several risks that could impact future growth.

The brokerage warned that prolonged weakness in IT hiring activity could weigh on recruitment revenues. Additionally, slower billings-to-revenue conversion and intensifying competitive pressures in verticals such as matrimony and real estate could impact operating leverage.

The report also noted that AI-led changes in search and recruitment behaviour remain an evolving variable for all digital platform businesses.

Investment Perspective

Info Edge appears to be transitioning from a pure classifieds company into a broader AI-enabled digital platform ecosystem.

While the recruitment segment remains the primary earnings contributor, the improving profitability trajectory of 99acres and the continued expansion of AI-powered offerings across business segments are gradually reshaping the company’s long-term growth profile.

For long-term investors, the stock remains attractive due to its dominant digital brands, debt-free balance sheet, strategic investments, and scalable platform economics. However, near-term volatility linked to macro hiring conditions and AI-related disruptions may continue to influence market sentiment.