Info Edge Q1 results: Why analysts have a split verdict on this stock?

Info Edge (India) Ltd.’s first quarter of FY26 (April-June quarter) saw steady revenue growth but muted momentum in its core recruitment vertical, prompting brokerages to take a mixed stance on the stock. While Nomura and Nuvama continue to back the counter with ‘Buy’ ratings, Motilal Oswal remains cautious with a ‘Neutral’ call.

 

On the bourses, Info Edge shares were trading flat, up just 0.2 per cent at ₹1,335.20. Around 9:50 AM, while the BSE Sensex edged 0.03 per cent higher to 79,878.75.

 

Info Edge Q1 results

 

Info Edge’s standalone revenue stood at ₹7,364 crore, up 15.3 per cent year-on-year (Y-o-Y), with billings rising 11.2 per cent to ₹6,442 crore. Recruitment billings were up 9 per cent Y-o-Y, a slowdown from 14 per cent in Q4 FY25, impacted by weaker IT hiring and softness in certain non-IT segments. 

 

Non-recruitment businesses, including 99acres, Jeevansathi, and Shiksha, outperformed with 17.6 per cent growth and narrowing cash losses. Operating profit came in at ₹250.2 crore with a margin of 34 per cent, while the company maintained a strong cash balance of ₹4,828 crore.

 

Nomura: Retain ‘Buy,’ Target cut to ₹1,600

 

Nomura sees modest billing growth ahead, with marketing spend likely to keep margins under pressure in FY26. Recruitment segment growth slowed across IT, BPM, and recruitment consultants, but July showed a pickup to ~13 per cent Y-o-Y billing growth. 

 

Non-recruitment portfolios, especially 99acres and Jeevansathi, continue to gain market share. 

 

Thus, Nomura has trimmed its FY26-27 EPS estimates by 5-7 per cent and cut its target price to ₹1,600 (from ₹1,670), implying a potential 20 per cent upside from current levels. Key risks include slower recruitment recovery and weaker performance of listed investments. 

 

Motilal Oswal: ‘Neutral,’ Target at ₹1,380

 

Motilal Oswal’s revenue and billings estimates were met, but Ebitda margin at 37.7 per cent fell short of its 40.7 per cent forecast. Adjusted PAT at ₹2,600 crore missed the expected ₹2,800 crore. The brokerage forecasts revenue and Ebitda growth of 13.1 per cent and 4.1 per cent respectively in Q2 FY26, maintaining a ‘Neutral’ rating with a ₹1,380 target price — just 4 per cent above current levels.

 

Nuvama: ‘Buy,’ Target revised to ₹1,550

 

Those at Nuvama termed Q1 steady, with revenue, margins, and PAT in line with its estimates. Recruitment billings were hit by decision-making delays but improved in July with 13 per cent growth in billings and 19 per cent growth in collections. 

 

Management aims to hold margins despite growth headwinds. Therefore, Nuvama analysts have tweaked FY26E/27E EPS down by 1.5 per cent and 7 per cent, citing slower recruitment growth, and lowered its target price to ₹1,550 (from ₹1,700). 

 

Info Edge outlook

 

Brokerages broadly agree that recruitment growth has slowed due to macro uncertainties, but signs of recovery in July offer some optimism. Non-recruitment segments continue to expand, aided by aggressive marketing in real estate and a traffic boost from the free-listing strategy in matrimony.

 

The stock’s outlook remains split as Nomura and Nuvama see attractive upside potential despite near-term pressure, while Motilal Oswal advises caution given margin risks and the modest growth trajectory. For investors, the call boils down to conviction in a second-half pickup in recruitment demand and continued traction in non-core verticals.