Shares of Info Edge will be in focus on Monday after Citi issued a fresh note in the wake of the company's third-quarter earnings for the financial year ending March 2026.
In its latest note, Citi has issued a bearish call on the counter, as it reduced the target price from Rs 1,120 to Rs 1,300 per share. The brokerage has maintained its 'sell' call.
The IT firm's consolidated third quarter earnings beat estimates on the back of higher recruitment revenue and lower percentage of spending on advertisement and promotion. However, the company's net profit declined 14.1% to Rs. 272 crore from the previous quarter's Rs 316 crore. It also reported a one-time loss of Rs 15.9 crore.
According to Citi, the company faced hiring headwinds from agentic AI. The brokerage has trimmed the estimated revenue growth to 6-9% for fiscal year 2027-28, as compared to 14% in FY26.
Info Edge Q3 Highlights (Consolidated, QoQ)
- Revenue up 1.7% at Rs 819 crore versus Rs 805 crore.
- EBIT up 6% at Rs 264 crore versus Rs 249 crore.
- EBIT margin at 32.2% versus 30.9%.
- Net profit down 14.1% at Rs 272 crore versus Rs 316 crore.
Info Edge also announced its second interim dividend of Rs 2.4 per equity share for the financial year 2025-26. The record to determine the shareholders eligible for the dividend payout has been fixed as Feb. 20.
Shares of Info Edge on Friday closed 1.24% lower at Rs 1,141.10 apiece on the NSE, compared to a 1.3% decline in the benchmark Nifty.
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