Info Edge falls to Dec-2023 low after FY27 earnings cuts

What triggered the slide in Info Edge shares

Info Edge (India), the parent of Naukri.com, came under fresh selling pressure after its March-quarter (Q4FY26) performance and billings update prompted multiple brokerages to cut estimates. On May 25, the stock dropped as much as 5% to ₹908.30, marking its lowest level since December 2023 and a fresh 52-week low. It later recovered from the day’s bottom but still closed 2.5% lower at ₹936.90.

The pressure followed a re-rating by analysts who cited slower growth in billings, especially in the Naukri recruitment business, and the downstream impact on FY27 earnings expectations. Info Edge is also a constituent of the Nifty Midcap 50 index and was reported as the top loser on the index during the session.

May 25 trading snapshot: from open to close

The stock opened at ₹964.45 on the NSE and slid sharply through the session, touching ₹908.30 intraday. By 11:30 AM, it was trading around ₹930.05, down 3.2%. Around 7 million shares had changed hands by that time, according to NSE data mentioned in the report.

By the end of the day, the share price settled at ₹936.90, still firmly in the red and near the levels that investors last saw in December 2023. The move reflected a market that was quickly repricing forward expectations rather than reacting only to the reported profit numbers.

Q4FY26 results: profit growth, but billings lag

Info Edge reported an 11.48% year-on-year rise in consolidated net profit for Q4FY26 to ₹756 crore. For the full fiscal year ended March 31, 2026, net profit increased 34.5% year-on-year to ₹1,763 crore from ₹1,310 crore in FY25.

But the debate in the market centred on growth momentum. Standalone billings for the March quarter were reported at ₹1,057.1 crore, up 7.45% from ₹983.8 crore in Q4FY25. The report noted this fell short of Street expectations of around 11% growth, which added to concerns about the near-term operating trajectory.

Recruitment (Naukri) remains the key variable

The recruitment solutions business (Naukri) remains the largest driver of billings, accounting for over 80% of overall billings, as cited in the report. In Q4FY26, recruitment billings grew 9.5% year-on-year. That was lower than the 11% year-on-year growth recorded in both Q2 and Q3.

The overall billings growth also slowed sequentially versus Q3, with the pre-quarter update showing 7.4% year-on-year growth in Q4 compared with 11.8% in Q3. This cooling trend is important because broker models often translate billings momentum into revenue growth assumptions and, eventually, earnings estimates.

Brokerage cuts: Goldman Sachs and JPMorgan trim estimates

Global brokerages turned more cautious after the quarter. Goldman Sachs reduced its revenue projections for Info Edge by 3% to 7% and cut earnings per share (EPS) estimates by 2% to 6% for FY26 to FY29.

JPMorgan also lowered its FY27 and FY28 earnings estimates by 2% to 10%, citing slower billings growth in the Naukri business. The revisions helped explain why the market reaction was sharp even though the company reported year-on-year profit growth.

Domestic broker stance: ‘Reduce’ stays in place

Domestic broker commentary in the report remained cautious. Motilal Oswal and JM Financial were cited as maintaining “reduce” ratings on the stock.

JM Financial was also reported to have cut its target price in separate updates: one reference mentioned a marginal reduction to ₹1,000 from ₹1,040 after Q4 results, while another update cited a cut to ₹1,050 from ₹1,100 after the business update. The reports also noted JM’s commentary that a correction in the stock prices of investee companies such as Eternal and PB Fintech contributed to its revised view.

Other views: Citi’s margin expectations

Citi Research was cited as expecting a 50-basis point sequential decline in overall operating profit margins to 42% in Q4. It forecast operating profit rising 25% year-on-year to ₹320 crore, while noting that sharper compression in the recruitment segment could offset margin improvement in smaller verticals.

Citi maintained a ‘sell’ rating with a target price of ₹1,120 per share, according to the report.

Key numbers at a glance

Market impact: valuation and recent stock performance

The report also framed the move within a broader weakness in the stock through 2026. Info Edge was cited as being down about 25% since the start of calendar year 2026, with the decline attributed to weak hiring trends, uncertainty in the IT sector, and concerns that higher marketing spends will pressure margins.

At the reported price levels, the stock was said to be trading at about 55 times its FY27 earnings estimates. Separately, the stock was noted as up about 5% over the past month, but down 24% over the last six months, down more than 20% year-to-date, and down 19% over the past one year.

Why the revisions matter: a billing-led narrative

The key takeaway from the broker notes is that billings growth, particularly in recruitment, is driving the near-term narrative. When billings growth undershoots expectations, brokerages typically moderate revenue assumptions and, in turn, earnings forecasts across multiple years. That is visible in the scale of revisions highlighted in the Goldman Sachs and JPMorgan updates.

At the same time, the mix of ratings and target prices shows that the debate is not about a single quarter’s profit print, but about the durability of growth in the core Naukri business and how that interacts with margins and spending. With recruitment contributing the bulk of billings, even modest changes in its growth rate can materially affect consolidated expectations.

Conclusion

Info Edge shares hit a fresh 52-week low on May 25 after Q4FY26 billings growth missed expectations and led brokerages to cut FY27-28 estimates. The stock’s next phase of trading is likely to track further updates on recruitment billings momentum and subsequent brokerage revisions following the March-quarter results and business updates.