Info Edge Shares Extend Rally, Gain 5% As Citi Double Upgrades On Q1 Update - Should You Buy?

Info Edge share price rose as much as 5.03% to Rs 1,217.8 a piece.

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Shares of Info Edge (India) continues to rally on Wednesday, July 8 as brokerages stayed positive on the company's billing growth numbers for the first quarter of FY27, ahead of its financial results. 

Info Edge share price rose as much as 5.03% to Rs 1,217.8 a piece. The scrip was trading 3.14% higher by 9:42 am, while the benchmark Nifty 50 was down 0.79%.

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Highlighting Q1 business update, Citi double upgraded the stock from 'sell' to 'buy' and hiked the target price to Rs 1,400, a 20.7% upside. JP Morgan maintained overweight coverage on the stock at a target price of Rs 1,350, an upside 16.4% from its last closing price. Nomura also retained 'buy' rating at a target price of Rs 1,320, marking an upside of 13.8%.

On Tuesday, July 7, Info Edge reported standalone billings of Rs 737 crore for the quarter ended June 30, 2026, an increase of 14.41% from a year earlier. Recruitment solutions, including Naukri.com, contributed Rs 552.7 crore in billings, compared with Rs 470.3 crore in the corresponding quarter last year, reflecting a 17.5% year-on-year increase.

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After the declaration of Q1 growth data, the company's shares rose nearly 12% in intraday trade on Tuesday. 

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Citi believes that Indo Edge's billings growth is likely driven by  average revenue per user in AI-Rex, Talent Pulse, Naukri Pro than volumes. 

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Meanwhile, JP Morgan says Info Edge's billings have accelerated, most likely from premiumisation. It expects believes the growth acceleration has likely been boosted by growth across IT Services, GCC and Naukri Gulf. It highlighted that sustainability of surge in Naukri billings is crucial, while premiumisation-led growth is expected to support higher margins.

 Nomura highlighted that Shiksha recorded a decline as the ‘search' function was impacted by AI. It mentioned that Naukri's billing beat estimates, likely due to premium hiring, which are the jobs in niche skills with higher pays especially in technology sector and a renewed focus on consumer business despite a possible weakness in the Middle East market due to the ongoing conflict.

Real estate business too, had strong billing growth. Billing in the previous quarter (Q4FY26)s were impacted by internal changes including sales organization revisons and tighter invoicing, process controls. The management called it as "a one-time transitional impact on 4Q billings" and expected growth to recover in 1Q FY27. Nomura believes the growth should continue in the real estate segment in the next few quarters.

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