Justdial Q2 FY27 net profit falls 35% sequentially to ₹107.8 crore
Synopsis
Justdial's Q2 FY27 profit slumped 35% sequentially to ₹107.8 crore even as revenue grew 13% year-on-year — a widening gap between topline growth and bottom-line delivery driven by a 15% surge in expenses. With EBITDA margins shrinking 230 basis points, the real story is whether the platform can convert its revenue momentum into sustainable profitability.
Key Takeaways
Justdial reported a Q2 FY27 net profit of ₹107.8 crore , down 35 per cent sequentially and 10 per cent year-on-year .
Operating revenue rose 13 per cent YoY and 5 per cent QoQ to ₹342.8 crore ; total income including other income stood at ₹397.4 crore .
Total expenses climbed 15 per cent YoY to ₹262.8 crore , squeezing margins.
EBITDA grew 4.1 per cent to ₹90.6 crore , but EBITDA margin contracted 230 basis points to 26.4 per cent .
Justdial shares closed at ₹745 on Monday, 19 October 2026 , up 4.45 per cent ; the stock has gained 36.33 per cent over the past six months.
Justdial, the Mumbai-based online classifieds platform, reported a 35 per cent sequential decline in net profit to ₹107.8 crore in the September quarter of FY27 (Q2 FY27), down from ₹166.2 crore posted in the June quarter. On a year-on-year basis, the profit also slipped nearly 10 per cent from ₹119.4 crore in Q2 FY26, according to the company's stock exchange filing.
Revenue Growth Amid Margin Pressure
Despite the sharp dip in profitability, Justdial's operating revenue showed healthy traction, rising 13 per cent year-on-year and 5 per cent quarter-on-quarter to ₹342.8 crore during the quarter. Including other income of ₹54.6 crore, the company's total income stood at ₹397.4 crore for the September quarter.
Rising Costs Squeeze Profits
The profitability pressure stemmed largely from a 15 per cent year-on-year rise in expenses, which climbed to ₹262.8 crore during Q2 FY27. Tax expenses added another ₹26.8 crore to the burden. The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) rose a modest 4.1 per cent to ₹90.6 crore, compared to ₹87 crore in the year-ago period — but the EBITDA margin contracted by 230 basis points to 26.4 per cent from 28.7 per cent a year earlier. This margin compression signals that revenue growth is not yet translating proportionately into bottom-line gains, a pattern seen across several mid-cap tech platforms navigating post-pandemic normalisation and rising operational costs.
Stock Performance
Justdial shares closed Monday's trading session at ₹745, up ₹31.75 or 4.45 per cent, suggesting the market had largely priced in the earnings softness. The stock has delivered a positive return of ₹85.90 or 13.03 per cent over the past five trading days, and has gained ₹62.30 or 9.13 per cent over the past month. Over the last six months, shares have surged ₹198.55 or 36.33 per cent. On a year-to-date basis, the stock is up ₹18.70 or 2.57 per cent.
What to Watch
Analysts will be closely monitoring whether Justdial can rein in cost growth while sustaining its double-digit revenue trajectory in the coming quarters. The platform's ability to improve monetisation of its local search and B2B segments is seen as the key lever to restore margin health and reverse the profitability slide.
Point of View
But costs scale faster. A 15 per cent jump in expenses against 13 per cent revenue growth is not a one-quarter anomaly — it is a trend that deserves scrutiny over the next two quarters. The 230-basis-point EBITDA margin compression is particularly telling because it occurred even as the platform logged its best six-month stock run in recent memory. Investors appear to be pricing in a future monetisation uptick that the current income statement does not yet validate.
NationPress
19 Oct 2026
Frequently Asked Questions
What was Justdial's net profit in Q2 FY27?
Justdial reported a net profit of ₹107.8 crore in the September quarter of FY27 (Q2 FY27), a decline of nearly 10 per cent year-on-year from ₹119.4 crore in Q2 FY26 and a steep 35 per cent drop sequentially from ₹166.2 crore in Q1 FY27.
Why did Justdial's profit fall despite revenue growth?
Justdial's expenses rose 15 per cent year-on-year to ₹262.8 crore, outpacing its 13 per cent revenue growth, which squeezed profitability. The mismatch between cost growth and revenue growth was the primary driver of the sequential and year-on-year profit decline.
How did Justdial's EBITDA perform in Q2 FY27?
Justdial's EBITDA rose 4.1 per cent to ₹90.6 crore in Q2 FY27 from ₹87 crore a year earlier. However, the EBITDA margin contracted by 230 basis points to 26.4 per cent from 28.7 per cent in the year-ago quarter.
How did Justdial's stock react to the Q2 results?
Justdial shares closed at ₹745 on Monday, 19 October 2026, up 4.45 per cent on the day. The stock has gained over 36 per cent in the past six months, suggesting the market had largely anticipated the earnings softness.
What is Justdial's total income for Q2 FY27?
Justdial's total income for Q2 FY27 stood at ₹397.4 crore, comprising operating revenue of ₹342.8 crore and other income of ₹54.6 crore.
