Synopsis:
Justdial plunged sharply following its poor Q2 performance. It reported Rs 303 crores of revenue with a growth of 6 percent YoY and 2 percent QoQ, whereas net profit decreased by 23 percent YoY to 119 crores and 26 percent QoQ. EBITDA margins dipped marginally by 10 bps, and net profit margin decreased significantly by 700 bps YoY.
The shares of this leading market leader in the local search engine segment in India are in focus after reporting a poor Q2 performance. As of June 2025, Reliance, through its Retail arm (Reliance Retail Ventures Ltd) holds a 63.84 percent stake in the business.
With a market capitalization of Rs 6,969 crore, the shares of Justdial Ltd made a day low of Rs 815.75 per share, down by 5 percent from its previous day closing price of Rs 859.65 per share. Over the past five years, the stock has delivered a return of 69 percent, underperforming the NIFTY 50’s return of 114 percent.
Q2 Highlights
Justdial has reported an operating revenue of Rs 303 crore in Q2 FY26, a growth of 6 percent as compared to Rs 285 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew slightly by 2 percent from Rs 298 crore.
Regarding its profitability, it reported a net profit of Rs 119 crore in Q2 FY26, a decline of 23 percent as compared to Rs 154 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 26 percent from Rs 160 crore.
Coming to its margins, EBITDA margins slightly declined by 10 bps to 28.7 percent in Q2 FY26, as compared to 28.8 percent in Q2 FY25. Additionally, its Net Profit margins declined significantly by as staggering 700 bps to 31.7 percent in Q2 FY26 vs 38.7 percent in Q2 FY25.
The number of unique users combined from all channels over the quarter was 197.7 million, with the yearly trend showing a slight decrease (0.2 percent), but the quarterly trend showing an increase of 2.3 percent.
The share of traffic from mobile devices was 87.3 percent, desktops/PCs made up 10 percent, and voice devices contributed 2.7 percent. The volume of mobile traffic increased by 2.1 percent year on year.
Analyst Comments
Citi has maintained a “buy” rating on the company but slashed its price target by 3.6 percent from Rs 1,100 to Rs 1,060, implying a 23 percent upside from Monday’s closing level. The brokerage highlighted that Just Dial needs to invest in growth areas like sales fleet, product, and traffic acquisition, and expects EBITDA growth to be driven by operating leverage.
Nuvama has also retained its “buy” rating but slightly lowered the price target to Rs 1,200 from Rs 1,280, still implying a 39 percent upside from Monday’s closing level. The brokerage has reduced EPS estimates for FY26 and FY27 by 5.8 percent and 3.9 percent, respectively, citing subdued collections growth and lowering near-term growth and profitability expectations.
Just Dial Limited is India’s No. 1 Local Search engine, best known for helping users locate products and services quickly anywhere in the country. This is done through its webpage, mobile application, or through telephone or text.
It began its journey in 1996 as a Justdial phone-based service, and in 2007, it launched its website. Gradually, the company has evolved into a full-fledged digital platform that not only offers information but also allows the user to register, order and pay online.
The company provides convenient tools like JD Omni, which helps small businesses to manage their operations digitally, JD Pay for fast digital transactions, and JD Social for the business sector to share their updates and content. Moreover, it has introduced a chat feature that encourages users and enterprises to have a direct conversation.
Justdial, as of September 2025, is a database that contains over 5 crore business listings, has around 20 crore quarterly users, and over 6.2 lakh paid campaigns. With more than 250 cities covered across India, it serves as a daily bridge that links millions of users and MSMEs and is, therefore, considered one of the most reliable mediums for local discovery and business visibility in India.
Written by Satayjeet Mukherjee
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