Just Dial Limited has received a significant GST penalty order from tax authorities in Mumbai, marking a substantial regulatory development for the digital services platform. The company disclosed this information under Regulation 30 of SEBI's listing requirements.

GST Penalty Details

The Assistant Commissioner of State Tax, Mazgaon, Mumbai, issued an order imposing penalties and demands on Just Dial Limited. The order addresses alleged irregularities in the company's GST compliance during FY 2018-19.

Nature of Alleged Violation

The penalty order stems from allegations of excess availment of input tax credit by the company on common services during the financial year 2018-19. The order was issued under Section 74 of both the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017.

Company's Response and Impact

Just Dial Limited has not announced any intention to appeal the order. The total financial exposure, including penalty, additional tax, and interest, amounts to ₹15.21 crore.

Regulatory Context

This penalty order represents a significant regulatory matter for Just Dial Limited. The company has fulfilled its disclosure obligations under SEBI regulations by promptly informing stakeholders about this material development.

The impact of this penalty on Just Dial's operations and financial position remains to be seen, and stakeholders will likely be watching closely for any further developments or responses from the company.

Just Dial , India's leading local search engine company, has reported a steady growth in its financial performance for the second quarter of fiscal year 2026, while emphasizing its focus on AI-powered platform expansion and B2B operations scaling.

Financial Highlights

For Q2 FY26 ended September 30, 2025, Just Dial reported:

The company maintained a healthy EBITDA margin of 28.70%, despite a slight decline of 9 basis points year-over-year. The decrease in net profit can be attributed to a reduction in other income, which fell by 35.50% compared to the same quarter last year.

Operational Performance

Just Dial's operational metrics showed mixed results:

• Quarterly unique visitors reached 197.70 million, a marginal decrease of 0.20% YoY.
• Mobile platform traffic grew by 2.10% YoY, now accounting for 87.30% of total traffic.
• Active paid campaigns increased to 623,970, up 4.30% YoY.
• Total listings expanded to 51.20 million, a robust growth of 10.80% YoY.

Strategic Focus on AI and B2B

Just Dial's Chief Growth Officer, Shwetank Dixit, highlighted the company's strategic direction: "We continue to invest in R&D to identify opportunities where AI and emerging technologies can be leveraged to drive operational efficiency and improve user experience."

The company is particularly focused on:

1. Strengthening technology, process, and talent foundations.
2. Expanding its AI-powered platform capabilities.
3. Scaling JD Mart B2B operations.
4. Implementing digital transformation initiatives for small and medium enterprises.

Financial Position

Just Dial maintains a strong financial position with:

• Cash and investments of ₹5,569.70 crore as of September 30, 2025, up 12.70% YoY.
• A steady revenue progress supported by its high-profit operating model.

Outlook

While specific future projections were not provided, Just Dial's management expressed commitment to nurturing new growth areas by leveraging the company's existing strengths. The focus on AI-driven innovations and B2B expansion suggests a strategic approach to maintaining growth momentum in the evolving digital landscape.

Investors and market watchers will be keen to observe how Just Dial's investments in AI and B2B operations translate into financial performance in the coming quarters, especially given the competitive nature of the digital services sector in India.