Just Dial Q2 FY27 Results (NSE: JUSTDIAL)
Signal: Margin pressure
The read
The operating trajectory improved on revenue, with net revenue growth accelerating to 13.1% YoY from 9.9% in the prior quarter, but profitability quality weakened: EBITDA grew only 4.1% and margin fell 167bps to 26.4%, while PAT declined 9.7% because other income fell 25.6% YoY and 58.5% QoQ. H1 operating cash flow of ₹1,152.1 million remained broadly flat YoY despite H1 PAT of ₹2,740.3 million.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹342.82 Cr | +13.1% | +4.7% |
| EBIT | ₹81.74 Cr | +7.8% | |
| Net profit | ₹107.81 Cr | -9.7% | |
| EPS | ₹12.68 | -9.7% | |
| EBIT margin | 26.4% |
P&L walk
Standalone revenue accelerated to ₹3,428.2 million, up 13.1% YoY and 4.7% QoQ, but EBITDA grew only 4.1% as employee and other expenses absorbed much of the operating growth; PAT declined 9.7% because other income fell to ₹545.6 million.
Key positives
- Net revenue increased 13.1% YoY to ₹3,428.2 million and 4.7% QoQ, an acceleration from the 9.9% YoY growth reported in Q1FY27.
- EBITDA remained positive at ₹906.5 million with a 26.4% margin despite other income volatility; finance cost fell 18.0% YoY to ₹17.3 million.
- H1 operating cash flow of ₹1,152.1 million was broadly stable versus ₹1,150.2 million in H1FY26, while investments and bank balances remained substantial at ₹54,137.3 million and ₹6,980.1 million.
Key concerns
- EBITDA grew only 4.1% YoY versus revenue growth of 13.1%, and EBITDA margin compressed 167bps to 26.4% as employee benefits and other expenses grew faster than revenue.
- PAT declined 9.7% YoY to ₹1,078.1 million because other income fell to ₹545.6 million from ₹733.0 million; earnings remain partly dependent on treasury and investment-related income.
- Other expenses rose 34.7% YoY to ₹435.0 million, lifting other expenses to 12.7% of revenue from 10.7%.
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