IT recovery key for Info Edge as Q2 growth lags on weak hiring trends

Hit by a slowdown in information technology (IT) hiring, Info Edge (India)’s results for the July–September quarter (Q2) of 2025-26 (FY26) fell short of brokerage expectations. What helped the online recruitment major offset the weak IT hiring trend was broad-based growth across other sectors. While the company remains cautiously optimistic about a revival in the IT vertical, some brokerages have cut their earnings estimates as well as target prices, citing multiple macro headwinds and limited valuation upside. The stock, currently trading at 65–75x its 2026–27 (FY27) earnings per share (EPS) estimates, has fallen about 11 per cent over the past year. In Q2, recruitment billings rose 11 per cent year-on-year (Y-o-Y) but came in below expectations due to sluggish IT demand. IT growth stood at 8 per cent, similar to the first quarter (Q1), but global capability centres stole the spotlight with an 18 per cent rise. The non-tech segment