On a standalone basis, billings rose 7.45% year-on-year to ₹1,057 crore from ₹983 crore. The recruitment business, led by Naukri, grew 9.5% to ₹810.7 crore from ₹740.3 crore.
The real estate segment, 99acres, saw a modest rise of 1.9% to ₹162.8 crore, while the matrimony platform Jeevansathi reported a strong 21% increase to ₹38.6 crore.
In contrast, the education segment Shiksha declined 12.9% to ₹45.1 crore.
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The company said that geopolitical tensions directly impacted its Naukri Gulf business and also had a spillover effect on the India recruitment segment.
Brokerage firm Nomura has maintained a ‘Buy’ rating on the stock with a price target of ₹1,500.
It said recruitment billings growth of 9.5% was largely in-line with expectations, although overall billings growth of 7.5% fell short of its estimates of 11%, mainly due to weaker performance in 99acres and other verticals.
HSBC has also maintained a ‘Buy’ rating with a price target of ₹1,525, stating that recruitment growth remains healthy despite a high base and weakness in the Gulf business.
It added that overall billings were impacted by transitional factors in 99acres, while performance in matrimony and education segments was largely in-line with expectations.
The brokerage also highlighted attractive valuations for the core business.
On the other hand, Citi has a ‘Sell’ rating on the stock with a price target of ₹1,120.
It expects recruitment revenue growth to pick up with a lag of one to two quarters, supported by billings momentum. However, it has flagged a potential 50 basis points sequential decline in overall EBITDA margins to around 42% in the fourth quarter, even as earnings growth is supported by lower advertising spends.
