Info Edge shares surge 5% after Q1 results

Info Edge, an Indian technology company, experienced a 5% increase in its stock price on Tuesday in response to its first quarter financial results for fiscal year 2027. The company reported a consolidated profit after tax of ₹490 crore for the quarter, down from ₹755.7 crore in the same period last year and ₹343 crore in Q1FY26.

Revenue from operations grew by 11% year-over-year to ₹880.7 crore, compared to ₹790.8 crore in Q1FY26. However, Info Edge's standalone profit after tax declined by 5% to ₹245.5 crore in Q1FY27 from ₹259.6 crore in the previous year. Citi raised its target price for Info Edge shares to ₹1,510 from ₹1,400 and maintained an 'accumulate' recommendation, highlighting several factors that could support the company's near-term growth, such as recruitment billings, improved pricing power, and enhanced job seeker monetisation.

Management also indicated that the company's growth for the fiscal year 2027 could potentially reach 15%, surpassing its earlier guidance of 12-13%. BofA Securities raised its target price to ₹1,400 from ₹1,330 but maintained an 'underweight' recommendation, noting that Q1 was a steady quarter and that improving hiring trends could sustain growth.

The bank also mentioned a 5% beat of EBITDA expectations, driven by improving business momentum, while the premium segment and new AI initiatives are helping Naukri, the company's job search platform. Macquarie retained a 'neutral' rating with a target price of ₹1,000, expressing concerns that recruitment revenue growth might be lagging billings and that AI could slow the velocity of jobs, potentially leading to a softer medium-term outlook for billings and revenue growth.