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.

Just Dial Limited, India's leading local search engine company, announced its financial results for the third quarter ended December 31, 2025, demonstrating steady revenue growth and improved operational efficiency despite facing regulatory headwinds. The company reported operating revenue of ₹305.7 crores, marking a 6.4% year-on-year increase, while maintaining healthy profitability margins across key metrics.

Financial Performance Highlights

The company's financial performance for Q3FY26 showcased operational resilience with several key improvements. EBITDA margin expanded to 31.2%, representing a 101 basis points improvement year-on-year, while absolute EBITDA grew 10.0% to ₹95.2 crores. Operating profit before taxes increased significantly by 14.4% to ₹82.1 crores, demonstrating strong underlying business fundamentals.

Impact of Regulatory Changes

The company's net profit declined 10.2% year-on-year to ₹118.0 crores, primarily due to exceptional expenses related to regulatory compliance. Just Dial recorded a one-time exceptional expense of ₹21.1 crores arising from past service costs due to implementation of the new labour code. This regulatory change, effective November 21, 2025, amended the definition of wages for gratuity calculations and expanded coverage to fixed-term employees.

Other income contributed ₹84.6 crores, growing 9.3% year-on-year and 15.5% quarter-on-quarter due to higher treasury levels. The effective tax rate normalized to 19.0% for Q3FY26 compared to the lower 12.0% in the previous year, which had benefited from deferred tax reversals.

Business Operations and User Engagement

Just Dial's operational metrics presented a mixed picture during the quarter. Total traffic measured by quarterly unique visitors reached 184.5 million users, declining 3.5% year-on-year but growing 6.6% quarter-on-quarter. Mobile platforms continued to dominate user engagement, accounting for 86.2% of total traffic, while desktop and voice platforms contributed 11.0% and 2.8% respectively.

Technology and AI Integration

The company continued advancing its artificial intelligence capabilities during the quarter. Chief Growth Officer Shwetank Dixit highlighted the evolution toward agentic AI, enabling 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 deployed AI across backend operations and sales functions while planning to roll out agentic AI voice and chat interfaces for data verification and customer support.

Financial Position and Liquidity

Just Dial maintained a strong balance sheet with cash and investments totaling ₹5,703.0 crores as of December 31, 2025, compared to ₹5,062.7 crores in the previous year and ₹5,569.7 crores in the preceding quarter. Deferred revenue stood at ₹521.9 crores, representing a 2.9% year-on-year increase, indicating sustained customer prepayments and business visibility.

The company's workforce remained stable at 12,731 employees, with sales employees comprising 10,135 of the total headcount. Total app downloads reached 42.2 million by quarter-end, growing 8.2% year-on-year, with Android platform accounting for 37.3 million downloads and iOS contributing 4.1 million downloads.

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