Key Highlights

  • Profit dips: Net profit fell nearly 10% YoY to Rs 107.8 crore and over 35% from Rs 166.2 crore in Q1.
  • Revenue grows: Operating revenue rose 13% YoY and 5% QoQ to Rs 342.8 crore.
  • Costs climb: Expenses increased 15% YoY to Rs 262.8 crore.
  • Margin squeeze: EBITDA rose 4.1% to Rs 90.6 crore, but margin narrowed 230 bps to 26.4%.
  • Stock rally: Shares closed at Rs 745 on Monday, up 4.45%, and have gained 36.33% in six months.

Local search and online classifieds platform Justdial has reported a dip in profit for the September quarter of FY27, even as its core business continued to grow. The company’s net profit fell nearly 10 per cent year-on-year to Rs 107.8 crore, compared with Rs 119.4 crore in Q2 FY26, according to its stock exchange filing.

On a sequential basis, the decline was sharper. Net profit dropped over 35 per cent from Rs 166.2 crore in the June quarter.

Revenue Keeps Growing

The top line, however, remained healthy. Operating revenue rose 13 per cent year-on-year and 5 per cent quarter-on-quarter to Rs 342.8 crore. Including other income of Rs 54.6 crore, total income stood at Rs 397.4 crore.

This shows demand for Justdial’s services is holding up, with more businesses paying to be listed and discovered on the platform.

Where the Pressure Came From

The problem was on the cost side. Total expenses rose 15 per cent year-on-year to Rs 262.8 crore, growing faster than revenue. Tax expenses stood at Rs 26.8 crore.

EBITDA, a measure of operating profit, grew 4.1 per cent to Rs 90.6 crore from Rs 87 crore a year ago. But because costs grew faster, the EBITDA margin shrank by 230 basis points to 26.4 per cent from 28.7 per cent.

In simple words, Justdial earned more money from its operations, but kept a smaller share of each rupee as profit.

Why the Sequential Fall Looks Steep

The 35 per cent quarter-on-quarter drop is largely about comparison. The June quarter’s profit of Rs 166.2 crore was unusually high, setting a tough base. Against last year’s quarter, the decline is a more modest 10 per cent.

Stock Has Been on a Strong Run

The results come after a strong rally in the stock. Justdial shares closed Monday’s session at Rs 745, up Rs 31.75 or 4.45 per cent.

  • Five days: Up Rs 85.90 or 13.03 per cent
  • One month: Up Rs 62.30 or 9.13 per cent
  • Six months: Up Rs 198.55 or 36.33 per cent
  • Year-to-date: Up Rs 18.70 or 2.57 per cent

Why It Matters

For investors, the key question is whether rising costs are a one-quarter blip or a longer trend. Steady revenue growth is a positive sign, but shrinking margins could weigh on future profits if expenses keep growing faster than sales.

What Comes Next

With Indian stock markets closed on Tuesday for Dussehra, the stock’s first reaction to the full set of numbers will be seen when trading resumes on Wednesday, October 21. Investors will also watch for management commentary on cost control and growth plans for the second half of FY27.