IT revival key to next leg of growth for Info Edge

Recruitment gains in non-tech, real estate, matrimony cushion impact of weak tech hiring

- RAM PRASAD SAHU

Hit by aslowdown in information technology (IT) hiring, Info Edge India results for the July-September quarter (Q2) of 2025-26 (FY26) fell short of brokerage expectations. What helped the online recruitment major offset the weak IT hiring trend was broad-based growth across other sectors.

While the company remains cautiously optimistic about a revival in the IT vertical, some brokerages have cut their earning estimates as well as target prices, citing multiple macro headwinds and limited valuation upside. The stock, currently trading at 65-75x its 2026-27 (FY27) earnings per share (EPS) estimates, has fallen about 11 per cent over the past year.

In Q2, recruitment billings rose 11 per cent year-on-year (Yo-Y) but came in below expectations due to sluggish IT demand. IT growth stood at 8 per cent, similar to the first quarter (Q1), but global capability centres stole the spotlight with an 18 per cent rise. The non-tech segment grew 11 per cent, while consulting was up 9 percent.