99acres nears operating breakeven as marketing spend declines

99acres reduced its operating loss by 93% year on year to less than Rs 2 crore in Q2 FY27, from Rs 23 crore a year earlier. The portal also generated Rs 22 crore of cash from operations, while marketing investment fell 13% and property enquiries across categories increased 33%.

How close is 99acres to operating breakeven?

99acres was close to operating breakeven in Q2 FY27 after reducing its operating loss to less than Rs 2 crore from Rs 23 crore in Q2 FY26. This 93% reduction came as its revenue grew 17% year on year and billings, a measure of customer sales booked, rose 21%. Billings growth also accelerated from 17% in Q1 FY27, indicating that sales growth increased in the second quarter.

The cash comparison was similarly pronounced. 99acres generated Rs 22 crore of cash from operations in Q2 FY27, compared with Rs 2 crore a year earlier. Cash from operations measures cash produced by the core business rather than accounting profit, and the gap between the two periods shows that the improvement extended beyond the reported operating-loss line.

Management linked the sharper economics to a more efficient marketing mix and growing portal leadership. It said marketing investment was about 13% lower year on year even as enquiries rose 33%. The company did not give an absolute marketing-spend figure or a full operating-profit target for the quarter, but it said operating leverage should emerge progressively through the rest of FY27.

Why did 99acres' traffic and engagement rise?

99acres expanded its traffic share, listing supply and user engagement during Q2 FY27. Web time share among the top three property portals reached 49% in the quarter and 51% in September, while app time share was 49% in Q2 and 50% in September. These measures show that the portal accounted for about half of time spent on both web and apps among the three leading portals.

The app comparison showed the largest shift. App time share rose to 49% in Q2 FY27 from 27% in Q2 of the prior year, based on SimilarWeb’s revised app-data series. Daily active users, or DAUs, on the app increased 25% year on year. The revised-series qualification matters because management used that data set for the stated year-on-year app-share comparison.

Supply also increased across the marketplace. Live resale, rental and commercial listings from owners rose 23% year on year, while those from brokers increased 14%; new-project listings grew 15%. Management said the wider supply base, traffic leadership and product improvements translated into higher engagement, with total property enquiries across categories up 33% year on year.

What is driving 99acres' improving marketing efficiency?

99acres reported better marketing efficiency because enquiries grew despite a 13% year-on-year reduction in marketing investment. Management said it continued to optimise the marketing mix and get more output from spending. The combination of lower investment and 33% enquiry growth is the clearest disclosed evidence behind its view that market leadership is beginning to improve the business economics.

Management also said it is applying artificial intelligence, or AI, across user experience, enquiry generation, marketing and operations. It reported early benefits in engagement and marketing efficiency, but did not quantify the contribution of AI to the 33% increase in enquiries or the 13% decline in marketing investment. The disclosed result is therefore an overall operational outcome rather than a separate AI revenue or cost measure.

Product expansion remains part of the plan. 99acres is taking 99Shorts beyond the National Capital Region, or NCR, into more cities, while investing in content, product and client delivery for new projects. Management estimated the new-project opportunity at about Rs 6,000 crore across digital and non-digital spending, making it a strategic priority rather than a segment for which it disclosed current revenue.

Can 99acres generate positive operating cash in FY27?

Management expects 99acres to generate positive operating cash for FY27, after the portal produced Rs 22 crore of cash from operations in Q2 FY27. It also said cash generation should strengthen over time. This is a management expectation, not a formal quarterly cash target, and it follows a Q2 in which the operating loss remained below Rs 2 crore rather than turning positive.

The company plans to pursue additional share in both traffic and revenue in the second half while improving profitability. That creates a balancing requirement: 99acres intends to keep investing to support growth even after marketing investment was about 13% lower year on year in Q2. Management’s stated expectation is that a widening lead in supply, traffic and monetisation will produce progressive operating leverage through the rest of FY27.

The revenue mix provides another area to watch. New projects are the stated strategic priority, while live listings from owners increased 23%, broker listings rose 14%, and new-project listings rose 15% in Q2. These different growth rates show that existing-property supply from owners expanded faster than the newer-project category during the period, despite the latter’s estimated Rs 6,000 crore addressable spend opportunity.

Conclusion

99acres’ Q2 FY27 figures show a substantial change in near-term economics: the operating loss fell 93% to less than Rs 2 crore, cash from operations reached Rs 22 crore, and billings growth accelerated to 21% from 17% in Q1. At the same time, web time share reached 49% and total enquiries increased 33%, alongside a 13% reduction in marketing investment.

The next test is whether 99acres can add traffic and revenue share in the second half while preserving the efficiency seen in Q2. Management plans further investment in new projects, 99Shorts expansion beyond NCR, and AI-led product and marketing improvements, and expects positive operating cash for FY27 with operating leverage emerging through the remainder of the year.