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Citi’s note emphasised the drivers behind Info Edge’s Q4 performance, adding that “FY25 billings growth benefited from normalisation of attrition rates, broadening client-base across sectors and geographies, and revenue-stream diversification.” This broad-based growth in billings was a key factor in the company’s overall performance.
Despite the Ebitda miss, Info Edge’s revenue grew 13% year-on-year, with Ebitda margins declining by approximately 300 basis points to 41%.
Citi noted that recruitment billings grew by 18% year-on-year. However, Ebit margins fell by 260 basis points to 55%. The property segment also performed well, with billings up 22% and revenue up 14%, though Ebit losses remained unchanged.
Looking ahead, Citi expects the momentum in billings growth to continue, driven by various factors. “Going forward, attrition rates in IT services may not rise further, while other growth drivers may persist,” the note highlighted.
Citi’s updated forecast shows a positive outlook, expecting billings to grow by 13% in FY26 and 16% in FY27, with revenue growth of 15% in FY26 and 14% in FY27.
The brokerage also pointed out the impact of increased A&P spending on margins. “Margins miss was driven by tactical acceleration in A&P spending on the back of traffic and billings growth,” Citi explained.
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