Justdial reported a 9.7% year-on-year decline in net profit to ₹107.81 crore for the second quarter of fiscal year 2027, even as revenue from operations grew 13.1% to ₹342.82 crore. The results for the quarter ended September 30, 2026, show that the local search platform continued to expand its core business, but higher expenses and lower other income weighed on its bottom line. The company had recorded a net profit of ₹119.44 crore in the corresponding quarter of the previous financial year.
The company’s total expenses increased 14.6% to ₹262.81 crore, outpacing the growth in operating revenue. Other income also declined to ₹54.56 crore from ₹73.30 crore a year earlier, limiting the contribution from non-operating sources. Justdial’s total income, which includes other income, rose to ₹397.38 crore from ₹376.37 crore. The figures highlight a key challenge for the business: maintaining profit growth while expanding revenue and managing the cost of running its platform.
Key Takeaways
- Net profit: Fell 9.7% year on year to ₹107.81 crore from ₹119.44 crore.
- Revenue from operations: Increased 13.1% to ₹342.82 crore.
- Total income: Rose to ₹397.38 crore from ₹376.37 crore.
- Total expenses: Increased 14.6% to ₹262.81 crore.
- Other income: Declined to ₹54.56 crore from ₹73.30 crore.
- Earnings per share: Basic and diluted earnings per share fell to ₹12.68 from ₹14.04.
- Business focus: Justdial continues to operate as a local search and business discovery platform connecting consumers with businesses across India.
Justdial Q2 FY27 Results at a Glance
The September quarter delivered mixed results. Revenue from operations increased by nearly ₹39.75 crore compared with the year-ago period, but net profit declined by approximately ₹11.63 crore.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹342.82 crore | ₹303.07 crore | +13.1% |
| Total income | ₹397.38 crore | ₹376.37 crore | +5.6% |
| Total expenses | ₹262.81 crore | ₹229.36 crore | +14.6% |
| Other income | ₹54.56 crore | ₹73.30 crore | Lower |
| Profit before tax | ₹134.57 crore | ₹147.01 crore | -8.5% |
| Net profit | ₹107.81 crore | ₹119.44 crore | -9.7% |
| Basic earnings per share | ₹12.68 | ₹14.04 | Lower |
Source: Justdial’s reported quarterly financial results. Figures are rounded where appropriate.
The numbers show why revenue growth alone does not provide a complete picture of a company’s financial performance. Operating revenue rose at a healthy double-digit rate, but expenses grew faster and other income fell sharply. Together, these factors contributed to lower reported earnings.
Why Did Justdial’s Net Profit Decline?
Two developments stand out in the September-quarter results: the increase in operating expenses and the decline in other income.
Total expenses climbed 14.6% to ₹262.81 crore, compared with ₹229.36 crore a year earlier. The increase of approximately ₹33.45 crore was greater than the ₹39.75 crore increase in revenue from operations, leaving less room for revenue growth to translate into higher earnings.
Employee benefits were a major component of the cost base. The company’s reported employee benefits expense rose to ₹208.67 crore from ₹183.72 crore. Other expenses also increased to ₹43.50 crore from ₹32.29 crore.
These expenses can reflect the cost of maintaining the workforce, operating the platform, supporting customers and businesses, and running the company’s broader activities. The reported figures do not establish that any single expense category was responsible for the entire profit decline.
Other income fell significantly
Other income dropped to ₹54.56 crore from ₹73.30 crore in the year-ago quarter, a decrease of approximately ₹18.74 crore.
This is important because total income includes both revenue from operations and other income. Justdial’s operating business generated more revenue, but the lower contribution from other income reduced the overall increase in total income.
For investors, the distinction matters. Operating revenue gives a clearer indication of how the company’s main business is performing, while other income may include returns from investments and other non-core sources. The composition of other income can vary across periods, so investors need to examine both operating performance and the factors influencing reported net profit.
Revenue Growth Shows Continued Demand for Justdial’s Services
Justdial operates a local search and discovery platform that helps users find businesses and service providers. Its offerings connect consumers with local establishments across categories such as restaurants, healthcare, home services, retail and professional services.
The platform’s business model includes paid listings and visibility-related services that help businesses reach potential customers. Companies may pay for enhanced placement or other services designed to improve their presence on the platform.
Revenue growth of 13.1% suggests that Justdial continued to expand its operating income during the quarter. However, revenue growth alone does not reveal whether the company added more paying businesses, increased revenue per customer, improved retention or benefited from changes in product mix.
Those details are important for assessing the durability of growth. A local search platform needs to demonstrate that businesses continue to see value in paying for visibility and customer leads, while consumers continue using its services to discover relevant providers.
The company’s future performance will therefore depend on its ability to retain business customers, attract new advertisers and maintain the usefulness of its search experience.
Justdial’s Position in India’s Local Search Market
India’s local search market is competitive. Consumers can discover businesses through dedicated directories, search engines, maps, social media, online marketplaces and specialised service platforms.
Justdial’s established database of businesses and its presence across multiple categories give it a role in this market. Its challenge is to keep its information useful, improve the experience for consumers and help listed businesses generate measurable commercial value.
For smaller businesses, online visibility can be an important way to reach customers beyond walk-in traffic and personal recommendations. Paid listings can provide an additional channel for customer acquisition, although the value of such services depends on lead quality, conversion rates and the cost of advertising.
Competition also puts pressure on the platform to keep improving search relevance, listing accuracy and the overall user experience. If customers can find the same business information easily through free alternatives, Justdial must demonstrate why businesses should continue paying for enhanced visibility.
The latest quarter’s revenue growth is a positive indicator for the core business, but continued expansion will depend on how effectively the company addresses these challenges.
What the Results Mean for Justdial’s Profit Margins
The gap between revenue growth and expense growth is one of the most important aspects of the results.
Revenue from operations increased 13.1%, while total expenses rose 14.6%. This suggests that the company faced cost pressure during the quarter. Profit before tax declined to ₹134.57 crore from ₹147.01 crore, a reduction of approximately 8.5%.
The reported numbers also show that earnings per share fell to ₹12.68 from ₹14.04. Earnings per share measures the profit attributable to each share and can help investors compare earnings performance over time.
| Indicator | Q2 FY26 | Q2 FY27 |
|---|---|---|
| Revenue from operations | ₹303.07 crore | ₹342.82 crore |
| Profit before tax | ₹147.01 crore | ₹134.57 crore |
| Net profit | ₹119.44 crore | ₹107.81 crore |
| Basic EPS | ₹14.04 | ₹12.68 |
The decline in earnings does not necessarily mean the core business is weakening. Operating revenue increased, but the cost base and lower other income affected the final result. Investors will need to examine subsequent quarters to determine whether expense growth moderates and whether operating revenue continues to expand.
Justdial’s Connection With Reliance
Justdial is owned by Reliance Retail Ventures, the retail arm of Reliance Industries. The ownership link places the local search platform within a larger corporate group with interests across retail and digital businesses.
However, the relationship should not be taken as proof that Justdial will automatically benefit from every Reliance initiative. Any operational synergies, technology integrations or cross-business opportunities would depend on specific plans and execution.
For Justdial, the immediate financial priority remains improving its own operating performance. That means growing revenue, retaining customers, managing expenses and making sure its services continue to provide value to businesses and consumers.
The group’s broader resources could offer opportunities, but the quarterly results need to be assessed on the basis of Justdial’s reported performance rather than assumptions about future integration.
What Investors Should Watch Next
Investors following Justdial will likely focus on several indicators in the coming quarters.
First, revenue growth will show whether the company can maintain demand for its paid business listings and related services. Sustained growth would indicate that its commercial offering continues to attract businesses.
Second, expense growth will be important. If expenses continue rising faster than operating revenue, profit growth could remain under pressure. If cost growth moderates, the company may be better positioned to convert additional revenue into earnings.
Third, investors will examine other income and the company’s operating profitability separately. A recovery in other income could improve reported net profit, but durable performance is generally easier to assess when the core business itself is generating stronger earnings.
Finally, competition will remain a key factor. Justdial must continue to show that its platform can attract consumers and deliver useful leads to businesses in a market where local discovery is available through many digital channels.
The September-quarter results provide evidence of operating growth, but they also show why revenue and profit need to be evaluated together.
The Bigger Picture
Justdial’s Q2 FY27 performance highlights a common challenge for digital platforms: growing the top line does not guarantee that net profit will rise at the same pace. The company expanded revenue from operations by more than 13%, but higher expenses and lower other income pushed net profit down by nearly 10%. Its ability to manage costs while sustaining demand for paid business listings will be important to future earnings.
The results also underline the need to distinguish operating performance from non-operating income. Justdial’s core revenue continued to grow, but the decline in other income affected total income and profit. Future quarters will show whether the company can improve the conversion of revenue into earnings while maintaining its position in India’s competitive local search market.
Looking Ahead
Justdial’s next results will provide more evidence about the sustainability of its revenue growth and whether expense increases begin to moderate. Investors will be watching operating revenue, employee and other costs, profit before tax, and the contribution from other income. A stronger balance between revenue and expense growth would help the company translate business expansion into better earnings performance.
For now, the September quarter presents a mixed picture: Justdial’s operating business grew, but its net profit declined. The key question is whether the company can sustain demand for its services while managing its cost base more effectively. That balance will be central to its financial performance over the remainder of FY27.
Frequently Asked Questions
1. What was Justdial’s net profit in Q2 FY27?
Justdial reported net profit of ₹107.81 crore for the quarter ended September 30, 2026, down from ₹119.44 crore in the same quarter a year earlier.
2. How much did Justdial’s revenue grow?
Revenue from operations increased 13.1% year on year to ₹342.82 crore from ₹303.07 crore.
3. Why did profit fall despite revenue growth?
Total expenses increased 14.6% to ₹262.81 crore, while other income declined to ₹54.56 crore from ₹73.30 crore. These factors weighed on profit despite higher operating revenue.
4. What was Justdial’s total income in Q2 FY27?
Total income reached ₹397.38 crore, compared with ₹376.37 crore in the corresponding quarter of the previous financial year.
5. Who owns Justdial?
Justdial is owned by Reliance Retail Ventures, the retail arm of Reliance Industries.
6. What should investors monitor in the next quarter?
Key indicators include operating revenue growth, expense trends, profit before tax, net profit, earnings per share and the contribution from other income. These figures can help show whether the company is converting revenue growth into stronger earnings.
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