Just Dial Q2 profit falls 10 per cent to Rs 107.81 crore

MUMBAI: Just Dial may be helping users find what they need, but its latest earnings tell a story of profit taking a small step back. The local search platform reported a net profit of Rs 107.81 crore for the quarter ended 30 September 2026, down around 10 per cent from Rs 119.44 crore in the corresponding quarter last year, even as revenue from operations continued to grow.

The company’s unaudited financial results, approved by its board on 19 October 2026, show that net revenue from operations rose to Rs 342.82 crore in the September quarter, against Rs 303.07 crore a year earlier, an increase of around 13.1 per cent. The figures are after deducting goods and services tax (GST) from the value of services provided to customers.

The growth in operating revenue, however, did not translate into a higher bottom line. Just Dial’s total income increased to Rs 397.38 crore in the quarter from Rs 376.37 crore in the year-ago period, supported by revenue from operations but partly offset by a sharp decline in other income.

Other income fell to Rs 54.56 crore in the September quarter, compared with Rs 73.30 crore in the corresponding period last year. The category includes gains on financial instruments and profits from the sale of investments, making it an important factor in understanding the movement in the company’s overall earnings.

Expenses moved in the opposite direction, rising to Rs 262.81 crore from Rs 229.36 crore a year earlier. Employee benefits remained the largest expense, increasing to Rs 208.67 crore from Rs 183.72 crore. Other expenses rose to Rs 43.50 crore from Rs 32.29 crore, while depreciation and amortisation costs declined to Rs 8.91 crore from Rs 11.24 crore. Finance costs stood at Rs 1.73 crore, compared with Rs 2.11 crore in the year-ago quarter.

As a result, profit before exceptional items and tax fell to Rs 134.57 crore from Rs 147.01 crore. After tax expenses of Rs 26.76 crore, compared with Rs 27.57 crore a year earlier, net profit came in at Rs 107.81 crore. Basic and diluted earnings per share stood at Rs 12.68, down from Rs 14.04 in the September quarter of FY26.

The quarter-on-quarter comparison also showed a moderation in earnings. Net revenue from operations rose from Rs 327.47 crore in the June 2026 quarter to Rs 342.82 crore in September, while total income declined from Rs 458.93 crore to Rs 397.38 crore. Net profit fell from Rs 166.22 crore to Rs 107.81 crore over the same period, reflecting the impact of lower other income.

The half-year numbers offer a broader view of the company’s performance. For the six months ended 30 September 2026, net revenue from operations increased to Rs 670.29 crore from Rs 600.93 crore in the corresponding period last year, a rise of around 11.5 per cent.

Total income for the first half of FY27 reached Rs 856.31 crore, up from Rs 801.54 crore. Yet net profit edged down to Rs 274.03 crore from Rs 279.09 crore, a decline of around 1.8 per cent. Profit before exceptional items and tax stood at Rs 341.16 crore, against Rs 345.92 crore a year earlier.

Total expenses for the half-year rose to Rs 515.15 crore from Rs 455.62 crore. Employee benefits expenses increased to Rs 408.58 crore from Rs 363.75 crore, while other expenses climbed to Rs 83.66 crore from Rs 63.68 crore. Depreciation and amortisation expenses, by contrast, declined to Rs 19.40 crore from Rs 22.95 crore, and finance costs fell to Rs 3.51 crore from Rs 5.24 crore.

Tax expenses for the six-month period stood at Rs 67.13 crore, almost unchanged from Rs 66.83 crore a year earlier. Basic and diluted earnings per share for the half-year came in at Rs 32.22, compared with Rs 32.82 in the corresponding period of FY26.

The company’s balance sheet also showed a shift in its financial position. Total assets stood at Rs 6,316.99 crore as at 30 September 2026, compared with Rs 6,044.17 crore on 31 March 2026. Total equity increased to Rs 5,376.38 crore from Rs 5,106.48 crore over the same period.

Investments stood at Rs 5,413.73 crore at the end of September, down from Rs 5,643.53 crore at the end of March. Cash and cash equivalents declined to Rs 2.21 crore from Rs 6.72 crore, while bank balances other than cash and cash equivalents rose to Rs 698.01 crore from Rs 202.01 crore. The movement in these balances provides a more detailed picture of the company’s liquidity position than cash holdings alone.

Just Dial generated net cash flows from operating activities of Rs 115.21 crore during the half-year, broadly in line with Rs 115.02 crore in the corresponding period last year. Cash generated from operations increased to Rs 158.06 crore from Rs 147.89 crore, although income tax paid, net of refunds and interest on tax refunds, rose to Rs 42.85 crore from Rs 32.87 crore.

Investing activities used net cash of Rs 104.58 crore, compared with Rs 107.34 crore in the first half of FY26. The company purchased investments worth Rs 621.91 crore and recorded proceeds of Rs 1,012.98 crore from the sale or redemption of investments. Net fixed deposits placed or redeemed during the period amounted to an outflow of Rs 496 crore. Financing activities used Rs 15.14 crore, mainly reflecting lease liability payments.

The company also disclosed that it allotted 4,375 equity shares during the half-year following the conversion of stock options granted under its employee stock option scheme. Its paid-up equity share capital consequently increased to Rs 85.05 crore, comprising 85,049,032 shares with a face value of Rs 10 each.

Just Dial operates in a single reporting segment, namely search and search-related services, and does not have any subsidiary or associate company. The results were reviewed by the Audit Committee and approved by the board on 19 October 2026. Deloitte Haskins & Sells LLP conducted the limited review of the financial statements.

For Just Dial, the latest quarter presents a mixed picture: operating revenue is growing, but higher expenses and weaker other income are limiting the gains at the profit level. The first-half figures show that the business continues to expand its revenue base, even as profitability remains slightly below last year’s level.