AI fears grip Info Edge stock

Shares of Info Edge (India)

- Manish Joshi

Ltd are down about 15% over the past month, almost mirroring the decline in the Nifty IT index. Investors appear concerned about potential collateral damage to recruitment revenues from the rapid rise of artificial intelligence (AI).In the December quarter (Q3FY26), the company’s recruitment business, Naukri.com, which accounts for nearly three-fourths of standalone billings, reported 11% year-on-year growth to ₹548 crore.

Despite efforts to diversify the recruitment business into non-IT sectors, direct exposure to IT, including global capability centres (GCs), remains significant at around 25% of billings, according to the company's presentation. GCCs for IT are captive centres set up by multinational companies to replace service providers such as Tata Consultancy Services and Infosys. If indirect exposure through manpower consultants serving the IT sector, many of whom are Info Edge’s customers, is included, the exposure rises to 30-35%.