Just Dial Limited announced its unaudited financial results for the third quarter ended December 31, 2025, showing a mixed performance with revenue growth offset by declining profitability. The company's results were notably impacted by regulatory changes in labour codes that created a significant one-time expense.

Financial Performance Overview

The company's financial performance for Q3FY26 demonstrated resilience in revenue generation despite facing regulatory headwinds:

Revenue Growth and Income Sources

Just Dial's net revenue from operations increased to ₹3,056.9 million in Q3FY26 from ₹2,873.3 million in Q3FY25, marking a solid 6.4% year-on-year growth. The value of services from contracts with customers reached ₹3,607.1 million, up from ₹3,390.5 million in the previous year. Other income contributed significantly at ₹846.3 million compared to ₹774.1 million in Q3FY25, including fair value gains on financial instruments of ₹747.3 million and profit on sale of investments of ₹9.3 million.

Expense Management and Operational Efficiency

Total expenses for the quarter increased to ₹2,236.2 million from ₹2,155.7 million in Q3FY25. Employee benefits expense, the largest cost component, rose to ₹1,790.7 million from ₹1,731.7 million year-on-year. Other notable expense categories included:

• Finance costs: ₹20.0 million (down from ₹28.3 million)
• Depreciation and amortisation: ₹111.7 million (down from ₹120.1 million)
• Other expenses: ₹313.8 million (up from ₹275.6 million)

Impact of New Labour Codes

A significant development affecting the quarter's results was the implementation of new labour codes. Effective November 21, 2025, the new labour code on Social Security 2020 amended the definition of "wages" for gratuity calculations and expanded coverage to fixed-term employees. This regulatory change resulted in a one-time exceptional item of ₹210.8 million, treated as past service costs under accounting standards. Without this exceptional item, the company's profit before tax would have been ₹1,667.0 million.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Just Dial demonstrated consistent operational performance:

Capital Structure and Share Information

The company maintained a stable capital structure with paid-up equity share capital of ₹850.4 million, consisting of 85,044,657 equity shares of ₹10 each. During the nine-month period, the company issued 2,500 equity shares upon conversion of stock options under its Employee Stock Option Scheme. The earnings per share for Q3FY26 improved to ₹16.35 from ₹15.44 in the previous year, despite the decline in absolute profit figures.

Just Dial operates in a single reporting segment of 'Search and search related services' and does not have any subsidiary or associate companies, eliminating the need for consolidated financial results. The results were reviewed by the Audit Committee and approved by the Board of Directors on January 13, 2026.

Just Dial Limited announced its unaudited financial results for the third quarter ended December 31, 2025, showing a mixed performance with revenue growth accompanied by a decline in net profitability. The search and search-related services company faced headwinds from exceptional charges while maintaining operational momentum.

Financial Performance Overview

The company's financial metrics for Q3FY26 present a contrasting picture of growth and challenges:

Net revenue from operations grew 6.4% year-on-year to ₹3,056.9 million, driven by increased value of services from contracts with customers. Total income reached ₹3,903.2 million, up 7.0% from the previous year, supported by other income of ₹846.3 million.

Exceptional Charges Impact Results

The quarter's profitability was significantly affected by exceptional charges totaling ₹210.8 million related to new labour codes. Effective November 21, 2025, the new labour code on Social Security, 2020, amended the definition of "wages" for gratuity calculations and expanded coverage to fixed-term employees. This revision resulted in a one-time past service cost recognition under Indian Accounting Standards.

Profit before exceptional items and tax stood at ₹1,667.0 million, representing an 11.8% increase from ₹1,491.7 million in Q3FY25. However, after accounting for the exceptional charge, profit before tax declined to ₹1,456.2 million.

Nine-Month Performance Analysis

The nine-month period ended December 31, 2025, reflected similar trends with revenue growth but reduced profitability:

For the nine-month period, net revenue from operations increased 6.3% to ₹9,066.2 million, while net profit decreased 6.9% to ₹3,970.2 million, primarily due to the exceptional charge impact.

Operational Metrics and Other Income

Other income contributed significantly to total income, reaching ₹846.3 million in Q3FY26 compared to ₹774.1 million in Q3FY25. This included fair value gains on financial instruments measured at fair value through profit and loss of ₹747.3 million and profit on sale of investments of ₹9.3 million.

Employee benefits expense, the largest cost component, increased to ₹1,790.7 million from ₹1,731.7 million year-on-year. Total expenses rose to ₹2,236.2 million from ₹2,155.7 million, representing a 3.7% increase.

Capital Structure and Earnings

The company maintained a stable capital structure with paid-up equity share capital of ₹850.4 million, consisting of 85,044,657 equity shares of ₹10 each. During the nine-month period, the company issued 2,500 equity shares upon conversion of stock options under its Employee Stock Option Scheme.

Basic earnings per share for Q3FY26 stood at ₹16.35, up from ₹15.44 in the corresponding quarter last year, while diluted earnings per share remained at ₹16.35. For the nine-month period, basic earnings per share reached ₹49.17 compared to ₹50.16 in the previous year.