Shares of Info Edge (India), the parent company of Naukri.com, fell nearly 5% on Monday after Goldman Sachs maintained its ‘Sell’ rating on the stock and cut the target price following the company’s Q4 FY26 results.
The brokerage reduced its target price to ₹955 from ₹1,120 earlier, citing weakness in the recruitment business and rising investments across emerging verticals. At 10:29 AM, Info Edge shares were trading at ₹915.40 on the NSE, down 4.7%.
According to Goldman Sachs, the company’s Q4 revenue and EBITDA were broadly in line after adjusting for one-off gains. However, the brokerage flagged continued weakness in hiring across IT services and GCCs, which has impacted the recruitment business outlook.
The brokerage also noted that while 99acres continues to gain market share, higher marketing spends remain a concern. Meanwhile, the education segment continued to face AI-led disruption, with revenue declining nearly 13%.
Goldman Sachs further cut estimates citing increased spending in AI-driven initiatives such as AI Rex, JobHai and the property business.
Despite the brokerage caution, Info Edge reported a healthy operational performance in Q4. Standalone revenue rose 17% year-on-year to ₹805 crore, while billings increased 7% to ₹1,057 crore. Operating profit jumped 39% YoY to ₹323 crore, with operating margin improving to 40%.
The company’s recruitment business, which includes Naukri, iimjobs and Hirist, posted revenue growth of 14% YoY to ₹581 crore during the quarter. Recruitment operating margin improved to 58%, while margins excluding the 4B business stood at 61%.
Management said the hiring environment remains subdued amid global uncertainty and cautious corporate sentiment, although demand for AI and machine learning talent continues to stay strong.
The company also declared a total FY26 dividend of ₹8.4 per share, up 40% year-on-year, while consolidated cash balance remained strong at ₹4,963 crore.
Disclaimer: The article is for informational purposes only and should not be considered as investment advice.