Justdial begins FY27 with 10 per cent revenue growth on AI-led momentum

MUMBAI: Justdial’s latest report is more than just a number crunch. The local search company has dialled up growth in the first quarter of FY27, posting its strongest sequential revenue growth in a decade outside the post-pandemic rebound, as artificial intelligence continued to reshape both its customer experience and internal operations.

For the quarter ended June 30, 2026, Justdial reported operating revenue of Rs 327.5 crore, up 9.9 per cent year-on-year from Rs 297.9 crore and 6.6 per cent quarter-on-quarter from Rs 307.2 crore.

Operating EBITDA came in at Rs 87.4 crore, a 1.1 per cent increase over the previous year, while EBITDA margin stood at 26.7 per cent, compared with 29.0 per cent a year ago and 28.9 per cent in the previous quarter. Advertising expenditure during the quarter was around Rs 10.2 crore.

Operating profit before tax rose 4.9 per cent year-on-year to Rs 75.1 crore from Rs 71.6 crore, although it was marginally lower than the Rs 76.1 crore reported in the March quarter.

Including treasury gains, total profit before tax reached Rs 206.6 crore, up 3.9 per cent year-on-year and 65.7 per cent sequentially. Other income surged to Rs 131.5 crore, rising 3.3 per cent over the previous year and 170.3 per cent quarter-on-quarter, helped by mark-to-market gains on the company’s treasury portfolio following a decline in bond yields of around 40 to 50 basis points.

Net profit stood at Rs 166.2 crore, increasing 4.1 per cent from Rs 159.6 crore a year earlier and 66.2 per cent from the previous quarter. The effective tax rate for the period was 19.5 per cent, while net profit margin stood at 36.2 per cent, compared with 37.5 per cent in the corresponding quarter last year.

Justdial’s balance sheet also strengthened further. Cash and investments increased to Rs 6,022.1 crore as of June 30, 2026, up from Rs 5,429.8 crore a year ago and Rs 5,852.2 crore at the end of March 2026. Deferred revenue stood at Rs 540.1 crore, reflecting a 1.0 per cent annual increase.

On the operational front, quarterly unique visitors reached 192.9 million, almost flat with the 193.2 million recorded a year earlier, representing a 0.2 per cent decline, but growing 5.8 per cent sequentially from 182.4 million.

Mobile remained the dominant platform, accounting for 166.8 million users, or 86.5 per cent of overall traffic. Desktop generated 20.5 million users, representing 10.6 per cent, while voice services contributed 5.6 million users, or 2.9 per cent of traffic.

The company’s business database continued to expand. Active listings grew to 56.1 million, up 13.0 per cent year-on-year and 2.7 per cent quarter-on-quarter. Justdial added 1,467,180 net new listings during the quarter.

Listings with geocodes increased 19.7 per cent to 41.7 million, while images across listings rose 14.1 per cent year-on-year to 262.9 million. Ratings and reviews climbed to 160.5 million, a 4.4 per cent increase over the previous year.

Paid campaigns reached 639,200, growing 3.5 per cent annually and 1.2 per cent sequentially.

The company also reported continued growth in its mobile ecosystem. Total app downloads rose to 44.1 million, up 8.2 per cent year-on-year and 1.9 per cent quarter-on-quarter, although average daily downloads declined 8.1 per cent to 6,994 from 7,613 a year earlier.

Its workforce expanded modestly to 13,337 employees, up 2.1 per cent year-on-year. The sales team grew faster, increasing 7.8 per cent to 10,965 employees, highlighting the company’s continued focus on merchant acquisition.

Explaining the quarter’s performance, Justdial chief growth officer Shwetank Dixit said, “We started FY27 on a strong note, with revenue growing 6.6 per cent quarter-on-quarter, our fastest sequential growth in a decade outside the post-COVID recovery period. This performance reflects focused execution across our core business, alongside sustained investment in technology capabilities that are now translating into tangible outcomes.”

Dixit said artificial intelligence had become a “genuine force multiplier” across the organisation. AI voice agents are now helping understand user intent and qualify leads more accurately, resulting in stronger buyer-seller matches. The company has also deployed AI across sales workflows, customer support, catalogue creation, listing verification and onboarding, allowing teams to focus on higher-intent opportunities while improving operational efficiency.

The company is now extending these AI capabilities to merchants by helping businesses create richer content and automate customer interactions. According to Justdial chief growth officer Shwetank Dixit, the long-term goal is to make AI tools accessible to millions of MSMEs across India.

During the quarter, Justdial also introduced the JD Mart Super Sixer Pack, a premium offering aimed at strengthening the digital presence of business sellers. The package combines qualified lead generation, premium 3D catalogues, Trusted and Verified badges, official Justdial rating certificates, personalised web banners and enhanced visibility across listings and product searches.

The company said the initiative reflects its ambition to become the preferred digital platform for India’s growing B2B commerce ecosystem while helping manufacturers, distributors, wholesalers and retailers improve online discovery and customer confidence.

With revenue growth accelerating, AI becoming central to its operations and a cash reserve exceeding Rs 6,000 crore, Justdial has entered FY27 with both financial strength and technology-led momentum, positioning itself for further expansion across consumer search and business commerce.