Will Info Edge Sustain Its Recovery Momentum Into FY26?
About Info Edge
Info Edge is one of India’s strongest internet franchises with leadership across recruitment (Naukri), real estate (99acres), matrimony (Jeevansathi) and education (Shiksha). The company continues to benefit from high brand recall, wide distribution and improving digital adoption, despite cyclical headwinds in IT hiring.
Brokerages highlight that billing recovery, margin improvement and stable growth in non-IT segments make Info Edge structurally well-positioned for FY26–27.
Key Brokerage Highlights
| Brokerage | Rating | Target Price | Key Commentary |
|---|---|---|---|
| Nomura | Buy | ₹1585 | Recruitment segment subdued; real estate stable; matrimony & education witnessing steady growth. |
| HSBC | Buy | ₹1670 | Macro + weak IT spending a drag, but 2Q improvement encouraging; margins to recover meaningfully. |
| Goldman Sachs | Buy | ₹1700 | Billings +12% YoY; EBITDA margin +200 bps QoQ; EPS CAGR 19% (FY25–28E); valuation attractive. |
Billing growth shows resilience even as tech hiring remains weak, indicating diversified revenue strength across verticals.
Margin improvement driven by cost controls and improving traction in non-recruitment businesses like real estate and education.
EPS growth visibility remains strong with brokerages projecting double-digit CAGR supported by operating leverage and stable business momentum.
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Peer Comparison
| Company | Focus Segment | Commentary |
|---|---|---|
| Info Edge | Recruitment/Real Estate | Strong brand equity; improving margins. |
| TeamLease | Staffing | More cyclical exposure to IT hiring. |
| IndiaMART | B2B Listings | Stable growth but highly competitive. |
Broker views converge on medium-term recovery with sharper margin expansion as hiring stabilizes and non-IT verticals scale.
Strengths & Weaknesses
Strengths
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Weaknesses
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Brokerages indicate stable recovery in FY26 as digital demand strengthens and hiring normalization begins.
Opportunities & Threats
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Valuation & Investment View
- Short-term: Strength from billing recovery and margin improvement.
- Medium-term: Digital expansion and normalization of hiring to drive stronger EBITDA trajectory.
- Long-term: Strong moat and diversified verticals offer consistent compounding potential.
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Investor Takeaway
Indian-Share-Tips.com market analyst Gulshan Khera, CFP®, notes that Info Edge’s combination of improving margins, diversified segment growth and attractive valuations makes it a compelling digital leader heading into FY26. Explore deeper market insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
