Info Edge Share Price Extends Gains Post-Earnings; Brokerages Hike Target Expecting Billing Growth

Info Edge Ltd., share price extends gains after posting third quarter earnings. Based on these results, two brokerages have raised its target price due to the strong margin improvement expectations.

Nuvama increased Info Edge target price, as they anticipate billing growth to remain strong along with improved margins. Citi has also hiked the target price given strong billing growth expectations.

Info Edge, the parent company of Naukri.com, reported a net profit of Rs 243 crore for third quarter of financial year 2025, marking a 60.6% increase from Rs 151 crore in the same period last year. Earnings before interest, taxes, depreciation, and amortisation rose by 34% to Rs 272 crore, compared to Rs 203 crore in the previous year.

Info Edge Ebitda margin improved to 37.6%, from 32.3% in the same quarter last year. It also reported a 61% jump in net profit in the third quarter of fiscal 2025. The effect on Info Edge share price was seen on Wednesday as it jumped over 3%.

Other updates on the company includes the Board approving stock split in the ratio of 1:5. They have also approved scheme of amalgamation amongst Arms & Co, which include Axilly Labs, Diphda Internet Services & Zwayam Digital, on Thursday. The company is also set to enter into contribution pact with IE Venture Investment to contribute up to Rs 1,000 crore directly or through Arms.

Nuvama sees a strong margin improvement after third quarter results. It has retained ‘buy’ rating on Info Edge with a revised target price of Rs 9,100, from the earlier Rs 8,800. Billing growth is continuing on an improving growth trajectory along with revenue growth catching up. Margins have improved across businesses, according to the brokerage.

Nuvama believes that growth is driven by both IT and non-IT segments for Info Edge. The non-IT segment saw an uptick of 17% year on year and the IT segment grew 16% year on year. Recruitment revenue grew 2.0% quarter on quarter and 12.1% against last year.

The brokerage noted that Jeevansathi revenue grew 3.4% compared to the last quarter and 23.2% against last year. This was due to introduction of more monetisation products, according to Nuvama.

Shiksha posted billing growth of 77% compared to last quarter and 12% against last year. However, Shiksha is witnessing headwinds in its study abroad platform, the brokerage noted.

Management increased its marketing investments by Rs 50 million this quarter in Jeevansathi business for content marketing and brand recall purposes. Shiksha business attained breakeven if it is looked at for nine months in financial year 2025. Management has highlighted that the demand environment remained stable since last quarter and activity on the portal has improved during the last two weeks.

Given the solid on margins and positive billings growth outlook Citi hikes its target price to Rs 9,100 from Rs 8,850 while retaining 'buy.' The revenues were slightly below its estimates while EBITDA was slightly ahead. Citi expects 15% year on year billings growth in the fourth quarter. The margins expanded to 43% and it expects further increase here on.

Citi revises estimates slightly lower as expect financial year 2024-27 Revenue to 15% from 16% and EBITDA CAGR to 19% from 20% earlier. Our multiple for core business lowered to 50 times from 52 times earlier as we roll forward

Uptick in quarterly unique customers was 10% year on year while realizations remain flattish. In non-recruitment classifieds, growth slowed to 15% this year while overall EBIT losses in these verticals declined 55%. The brokerage expects the company to achieve operating breakeven in Property in financial year 2025 if growth remains steady.

As per the management, the base is still favorable for the fourth quarter in the financial year 2025. The recruitment billings and characterized the overall hiring environment as “business-as-usual” as opposed to “hot”, according to Citi.

Info Edge stock rose as much as 3.48% during the day to Rs 8,185 apiece on the NSE. It was trading 2.64% higher at Rs 8,118.7 apiece, compared to an 0.22% decline in the benchmark Nifty 50 as of 10:00 a.m.

It was down 6.36% in the last 12 months. The total traded volume so far in the day stood at 4.8 times its 30-day average. The relative strength index was at 46.14.

Sixteen out of the 20 analysts tracking the company have a 'buy' rating on the stock, three recommend a 'hold' and one suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 8,334.21, implying a upside of 2.7%.