Shares of Info Edge India — the parent company of Naukri.com — plunged over 5 per cent in early trade on Monday, 25 May, touching a fresh 52-week low of ₹909.20 on the Bombay Stock Exchange (BSE), as analysts flagged a cautious near-term growth outlook amid a subdued hiring environment and rising artificial intelligence adoption.

The Slide in Numbers

Info Edge shares fell 5.4 per cent from their previous close to hit an intraday low of ₹909.20, making the stock among the top losers on the Nifty Midcap 50 index during the session. The BSE confirmed the new 52-week low, noting: 'Traded on new 52-week low value 909.20.' For context, the stock had touched a 52-week high of ₹1,549 earlier in the year — implying a peak-to-trough decline of more than 41 per cent.

Over the broader period, Info Edge shares have shed more than 35 per cent in the last 12 months, roughly 30 per cent so far this calendar year, and nearly 7 per cent in the past one month alone.

What Analysts Are Saying

Domestic brokerage JM Financial has maintained a 'reduce' rating on the stock and trimmed its target price to ₹1,000. The brokerage acknowledged that the company delivered stronger-than-expected margins in businesses such as Naukri and 99acres, but cautioned that 'the broader hiring environment remains subdued amid rising adoption of artificial intelligence in technology jobs and ongoing macroeconomic uncertainties.'

JM Financial added that meaningful acceleration in billings growth may remain challenging in the near term, despite improving traction in AI-driven offerings and stronger positioning in the real estate platform segment. The brokerage further warned that the stock may not witness a significant rerating without sustained top-line growth across its key business segments.

Q4FY26 Earnings Snapshot

For the January–March quarter of FY26 (Q4FY26), Info Edge India reported a consolidated net profit of ₹756 crore, up from ₹678 crore in the corresponding quarter of the previous year — a year-on-year rise of roughly 11.5 per cent. Revenue from operations stood at ₹869 crore during the quarter. While the profit improvement was notable, analysts appear to be weighing the structural headwinds against the earnings beat.

The AI Overhang on Naukri

The core concern for Info Edge centres on its flagship Naukri.com platform, which derives a significant share of its billings from technology-sector hiring. As large Indian IT firms and global technology companies moderate their recruitment amid AI-driven productivity gains, the volume of job listings and recruiter subscriptions — Naukri's primary revenue drivers — faces structural pressure. This is not an isolated quarter's worry; it reflects a broader industry shift that could weigh on the platform's growth trajectory for several quarters.

What to Watch

Investors will track whether the hiring environment in the technology sector stabilises as AI adoption matures, and whether 99acres and other non-recruitment verticals can offset the Naukri slowdown. Any recovery in IT-sector headcount addition or a broader macroeconomic upturn could provide a catalyst, but analysts currently see limited near-term triggers for a rerating.