Are Info Edge (India) Ltd latest results good or bad?

Info Edge (India) Ltd's latest financial results for Q3 FY26 highlight a mixed operational performance. The company achieved record net sales of ₹819.41 crores, reflecting a year-on-year growth of 13.43% and a sequential increase of 1.73% from the previous quarter. This consistent revenue growth underscores the strong demand for Info Edge's recruitment and real estate platforms, particularly in a robust job market. However, the profitability aspect reveals challenges. The consolidated net profit for the quarter was ₹271.71 crores, which, while showing a 12.00% increase year-on-year, marked a decline of 14.12% compared to the previous quarter. This sequential decrease is primarily attributed to a reduction in other income, which has become a significant component of the company's overall profitability. Operating margins, excluding other income, stood at 35.92%, indicating a slight improvement from the previous quarter but a contraction compared to the same period last year. This margin compression is linked to rising employee costs that have outpaced revenue growth. Additionally, the company's return on equity (ROE) remains modest at 5.39%, raising concerns about capital efficiency. The latest figures indicate a deterioration in this metric, suggesting that Info Edge is facing challenges in generating adequate returns on shareholder investments. In summary, while Info Edge (India) Ltd has demonstrated operational resilience with strong revenue growth, the decline in net profit and ongoing capital efficiency concerns highlight the complexities of its financial performance. The company saw an adjustment in its evaluation, reflecting the mixed results and the broader market dynamics affecting its stock performance.