Just Dial reported mixed third-quarter results, with revenue growth offset by declining profitability as the company continues its focus on AI integration and operational improvements. The digital services platform saw revenue increase while margins expanded, though traffic metrics remained under pressure.

Financial Performance Overview

The company's financial results for the December quarter showed contrasting trends across key metrics:

The company's cash and investments position strengthened significantly to ₹5,703.00 crores compared to ₹5,062.70 crores in the previous year and ₹5,569.70 crores in the previous quarter.

Traffic and User Engagement Metrics

User engagement showed mixed performance during the quarter. Quarterly unique visitors reached 184.5 million users, representing a 3.5% decline from the year-ago period but showing sequential improvement with 6.6% growth from the previous quarter.

The company's top ratings and reviews increased 2.9% year-on-year to 155.7 million, indicating continued user engagement despite the overall traffic decline.

AI Integration and Technology Initiatives

Just Dial made significant progress in implementing agentic AI across its operations during the quarter. Chief Growth Officer Shwetank Dixit highlighted the automation of critical workflows, including AI-driven analysis of user calls to businesses for identifying genuine category-level intent and automatically creating qualified leads. The company has also deployed AI across backend operations and sales functions.

Looking ahead, the company plans to expand its AI capabilities by rolling out agentic AI voice and chat interfaces to support data verification and customer support. Additionally, AI will be embedded within the search experience to enable more conversational discovery for users.

Analyst Coverage and Market Performance

Citi maintained its buy rating on the stock while adjusting its price target to ₹1,000.00. The brokerage noted that Just Dial needs to invest for growth and expects meaningful EBITDA growth to be driven primarily by operating leverage going forward.

Citi has lowered its growth estimates and reduced multiples from 12 times to 10 times, citing the continued decline in traffic as a key concern for future growth prospects.

Just Dial shares ended the previous trading session 1.5% higher at ₹733.00 per share. However, the stock has declined 18.7% over the past year, reflecting investor concerns about the company's growth trajectory and competitive positioning in the digital services market.

Just Dial has released its Q3 financial results, presenting a mixed performance with revenue growth accompanied by a decline in net profitability. The digital services platform demonstrated resilience in its top-line growth while facing challenges in bottom-line performance during the quarter.

Financial Performance Overview

The company's Q3 results reflect contrasting trends across key financial metrics:

Revenue Growth Momentum

Just Dial achieved revenue of ₹305.00 crores in Q3, compared to ₹287.00 crores in the corresponding quarter of the previous year. This represents a solid 6.27% year-on-year growth, indicating the company's ability to expand its business operations and maintain market traction in the competitive digital services landscape.

Profitability Challenges

Despite revenue growth, the company experienced a decline in net profit, which stood at ₹118.00 crores compared to ₹130.00 crores in Q3 of the previous year. This 9.23% decrease in net profit suggests increased operational costs or other expenses that impacted the bottom line during the quarter.

Operational Efficiency Gains

A notable positive development was the improvement in EBITDA performance. The company reported EBITDA of ₹95.30 crores, up from ₹86.60 crores year-on-year, marking a 10.04% increase. More significantly, the EBITDA margin expanded to 31.17% from 30.14% in the same quarter last year, representing an improvement of 103 basis points and demonstrating enhanced operational efficiency.

Key Takeaways

The Q3 results highlight Just Dial's ability to grow its revenue base while improving operational metrics. The company successfully enhanced its EBITDA margin, indicating better cost management and operational leverage, even as it faced challenges in translating this operational improvement into higher net profitability during the quarter.