Digital classifieds platform Justdial’s net profit rose a meagre 4.1% to ₹166 Cr in the first quarter (Q1) of fiscal year 2026-27, while CEO VSS Mani announces his departure.
New Delhi, India Jul 11, 2026 ALN: Digital classifieds platform Justdial has reported a modest increase in its net profit for the first quarter (Q1) of the fiscal year 2026-27 (FY27), with a rise of 4.1% to ₹166 crore, compared to ₹159.6 crore in the same quarter of the previous year. This performance, while an improvement, highlights the challenges that the company faces in a competitive market. On a sequential basis, the profit after tax (PAT) saw a significant increase of 66.2%, up from ₹100 crore in the previous quarter, suggesting a potential recovery or strategic adjustments that may be beginning to bear fruit.
In terms of operating revenue, Justdial experienced a year-on-year (YoY) increase of 9.9%, alongside a quarter-on-quarter (QoQ) growth of 6.6%, bringing the total revenue for Q1 FY27 to ₹327.5 crore. This growth in revenue is noteworthy as it indicates a positive trend in the company's core business operations. Including other income, which amounted to ₹131.5 crore, Justdial's total income for the quarter reached ₹458.9 crore. This comprehensive figure underscores the importance of diversifying revenue streams beyond core operations to enhance overall financial health.
However, total expenses rose by 11.5% to ₹252.3 crore compared to ₹226.2 crore in Q1 FY26, suggesting that while revenue is increasing, the costs associated with running the business are also climbing. This trend could raise concerns about profit margins and operational efficiency. The company reported an operating EBITDA of ₹87.4 crore, which represented a mere 1.1% YoY increase, while the operating EBITDA margin fell by 233 basis points to 26.7%. Such a decline in margin could indicate rising costs or inefficiencies that need to be addressed to maintain profitability.
Shwetank Dixit, Justdial's chief growth officer, commented on the company's performance, stating, "We started FY27 on a strong note, with revenue growing 6.6% QoQ, our fastest sequential growth in a decade outside the post-COVID recovery period. This performance reflects focused execution across our core business, alongside sustained investment in technology capabilities that are now translating into tangible outcomes." This statement highlights the company's commitment to leveraging technology and strategic execution to drive growth, which is crucial in today's digital landscape.
On the operational front, Justdial reported that its total traffic, measured by unique visitors, was 19.3 crore in Q1 FY27, which represents a slight decline of 0.2% YoY but an increase of 5.8% QoQ. The data reveals that a significant portion of the traffic, 86.5%, or 16.7 crore, came from mobile platforms, while desktop and voice platforms contributed 10.6% (2.1 crore) and 2.9% (56 lakh users), respectively. This trend towards mobile usage underscores the importance of optimizing mobile platforms to enhance user engagement and retention.
Total active listings reached approximately 5.6 crore at the end of June 2026, marking a 13% increase YoY and a 2.7% increase sequentially. The company reported adding 14.7 lakh new listings during the quarter. Moreover, 4.2 crore of these listings were geocoded, which is a 19.7% YoY increase. Geocoding is critical for enhancing the relevance of search results and improving user experience, especially in a location-based service like Justdial.
In addition to its financial results, Justdial announced significant changes in its leadership. Cofounder VSS Mani will step down as the chief executive officer (CEO) and managing director of the company on July 31, after a remarkable 33-year tenure. Mani has been a pivotal figure in Justdial's journey since its inception in 1993, guiding the company through various phases of growth and transformation, including its acquisition by Reliance Retail for ₹3,497 crore in 2021.
The transition in leadership comes at a time when Justdial is grappling with stagnant sales and competition from larger platforms like Google and niche services such as Zomato and Practo. These competitors have increasingly captured market share, particularly in specific verticals like food delivery and healthcare, which have become more prominent in the digital economy.
The board of Justdial has approved the appointment of Dinkar Ayilavarapu, a former executive at Flipkart, as the new CEO. Ayilavarapu will also take on the role of key managerial personnel (KMP) of the company, starting August 1. With over two decades of experience in the technology and e-commerce sectors, including roles at Flipkart Wholesale, Accenture, and Bain & Company, Ayilavarapu brings a wealth of knowledge and expertise that could prove beneficial as Justdial navigates its next phase of growth.
In conjunction with the leadership change, Justdial has appointed Dinesh Taluja as the new chief financial officer (CFO) and KMP, effective July 11. Taluja's appointment follows the resignation of Abhishek Bansal, who served as CFO for nearly twelve years. Such leadership transitions are critical for companies as they can bring fresh perspectives and strategies, particularly in times of change.
Following these announcements, Justdial's shares experienced a positive response, closing 3.42% higher at ₹564.6 on the Bombay Stock Exchange (BSE). This uptick in share price may reflect investor confidence in the company's strategic direction and leadership changes.
The implications of Justdial's recent performance and leadership changes are significant. As the company strives to enhance its competitive position in the digital classifieds space, it must focus on improving operational efficiencies, optimizing costs, and leveraging technology to attract and retain users. The new leadership team, particularly under Ayilavarapu's guidance, will need to address the challenges posed by competitors while also capitalizing on the opportunities presented by a growing digital economy.
Overall, Justdial's financial results and leadership transitions mark a pivotal moment for the company as it seeks to redefine its strategy and strengthen its market presence in an increasingly digital and competitive landscape. The coming months will be crucial in determining how effectively the new leadership can steer the company towards sustainable growth and profitability.
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