Why Info Edge Stock Is Down — Real Reasons, Latest Numbers & Future Outlook
Info Edge (India) Ltd — the company behind Naukri.com, 99acres, Jeevansathi and Shiksha , has seen its share price cool off recently even though its quarterly numbers look strong at first glance. As of mid-November 2025, the stock trades near ₹1,343, and during the recent session it slipped more than 2%, confusing many investors.
Here’s a clear explanation of why the stock is under pressure, what the latest quarterly numbers mean, and what the future could look like for Info Edge.
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Latest Quarterly Numbers (Q2 FY26)
Info Edge reported a steady, healthy performance for the September 2025 quarter:
Revenue: Around ₹805 crore, growing roughly 15% year-on-year.
Net Profit (PAT): About ₹316 crore, a massive increase compared to last year because the base was unusually low.
EBITDA Margin: Slightly weaker — around 39–40%, compared to over 41% last year.
Dividend: An interim dividend of ₹2.40 per share was announced.
Stock Trend: Despite the results, the stock has dropped 7–8% in the past six months, well below its previous highs.
These numbers show a business that is growing, but not fast enough to fully satisfy the high expectations placed on it.
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Why Info Edge Stock Is Falling
1. Growth is good, but not “high-growth” good
A 15% rise in revenue is healthy, but for a premium tech-driven company, the market often expects faster expansion. When growth doesn’t accelerate, investors start comparing it with other opportunities.
2. Margins are getting squeezed
Even though profits increased on paper, the core operating margin actually dipped. Higher employee costs, technology spending and marketing investments are eating into the company’s profitability. Investors worry when revenue rises but margins fall.
3. Profit jump looks bigger than it truly is
A huge portion of the PAT surge is due to last year’s unusually low base and certain accounting adjustments. When investors strip out these non-recurring items, the underlying growth looks more modest.
4. High valuation = low tolerance for disappointment
Info Edge trades at a premium valuation. When a stock is priced for perfection, even small negatives, slower growth, rising costs, revenue fluctuations, can lead to quick profit-booking.
5. Recruitment and classifieds depend on the economy
If hiring slows, if companies reduce HR budgets, or if real-estate activity softens, platforms like Naukri or 99acres feel the impact immediately. Some sectors in India are seeing cautious hiring, which affects sentiment.
6. Portfolio complexity and startup exposure
The company also invests in various startups. While this is a long-term advantage, short-term fluctuations in startup valuations can affect market sentiment.
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What the Future Looks Like for Info Edge
Positive Signs
India’s digital hiring boom still has a long runway; companies continue shifting from offline to online recruitment.
Platforms like 99acres, Shiksha, and Jeevansathi provide additional growth engines beyond Naukri.
The company is investing in AI-based matching, better employer tools, and premium services that can improve monetisation.
A debt-free balance sheet helps the company stay flexible for expansion and acquisitions.
Risks to Watch
Slower revenue growth could pressure the already-high valuation.
Rising operating costs may further squeeze margins.
Competition in recruitment and real estate classifieds is picking up.
Market rotation away from high-valuation tech stocks could keep the stock volatile.
Execution risk: new products and monetisation strategies must deliver real financial improvement.
Overall Outlook
Info Edge remains a strong long-term business, but the stock’s near-term movement depends on whether it can show faster growth and improving margins in the coming quarters. If it succeeds, the stock can regain momentum. If not, valuation pressure may continue.
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FAQs
1. Why is Info Edge stock falling today?
Because growth and margins are not matching high market expectations, and the stock fell over 2% amid profit-booking.
2. Is the company growing?
Yes, revenue grew about 15% year-on-year, but growth is not accelerating fast enough for a high-valuation stock.
3. Why are margins down?
The company is spending more on technology, hiring and marketing, which reduces operating margin.
4. Why did net profit jump so much?
Because last year’s profit was unusually low due to tax and accounting items; this exaggerates the jump.
5. What is the current share price?
Approximately ₹1,343 as of mid-November 2025.
6. Does Info Edge have debt?
It is largely debt-free, which is a major strength.
7. What businesses does Info Edge run?
Naukri.com, 99acres, Jeevansathi, Shiksha, and several startup investments.
8. Is it a good long-term stock?
Yes for long-term investors who can tolerate volatility, but valuations require strong performance.
9. What are the key risks?
Rising costs, slower hiring trends, competition, and valuation pressure.
10. What should investors watch next quarter?
Revenue growth, margin trends, performance of 99acres and other verticals, and cost control.