Just Dial Ltd (Justdial), India’s leading local search engine company, reported a 9.7% year-on-year (YoY) decline in net profit to ₹107.8 crore for the second quarter of FY27, primarily due to a fall in other income amid higher bond yields. Revenue, however, grew 13.1% to ₹342.8 crore, reflecting continued business growth.
Operating EBITDA stood at ₹90.7 crore, with an EBITDA margin of 26.4%, highlighting the company’s ability to maintain operating profitability while investing in new growth initiatives.
Other income declined 25.6% YoY to ₹54.6 crore. The company attributed the fall partly to movements in bond yields. Yields increased by 57 basis points quarter-on-quarter in Q2 FY27, following a 44-basis-point decline in Q1 FY27, which had resulted in higher mark-to-market (MTM) gains in the preceding quarter.
Justdial’s cash and investments stood at ₹6,113.9 crore as of September 30, 2026, compared with ₹5,569.7 crore a year earlier and ₹6,022.1 crore as of June 30, 2026. The balance increased 9.8% year-on-year and 1.5% sequentially, providing financial headroom for its expansion plans.
AI and B2B expansion drive investments
The company continued to invest in artificial intelligence (AI), automation and business-to-business (B2B) expansion during the quarter, with these strategic priorities accounting for approximately one-third of incremental expenditure.
Paid campaigns on the platform grew 5.2% YoY to 656,520, while Justdial recorded 198.4 million unique visitors. Its total business listings stood at 57.4 million as of September 30, 2026.
Justdial is focusing on improving merchant outcomes through AI-led sales tools, enhancing digital presence management and developing products that address a wider range of business needs.
The company is also seeing encouraging adoption of its AI-powered customer relationship management (CRM) and lead management tools, which are designed to help Indian businesses manage customer interactions and improve lead conversion.
Focus shifts beyond business discovery
Just Dial Ltd Chief Executive Officer Dinkar Ayilavarapu said the company was moving beyond its traditional role in business discovery to become a broader platform helping merchants attract customers and manage their businesses.
He said the company’s strategy centred on strengthening its core business, using AI to improve sales productivity and helping merchants manage their digital presence and customer conversations across platforms.
Justdial is also exploring opportunities to connect businesses with relevant services through a marketplace, develop AI-powered business operations tools and introduce new digital services based on its merchant data and insights.
The company plans to prioritise initiatives that demonstrate sustainable economics while continuing to strengthen its core operations.
With revenue growth, a profitable operating business and a substantial cash and investment base, Justdial is seeking to build additional revenue opportunities beyond discovery and lead generation. The challenge will be to translate its investments in AI and merchant-focused services into sustained growth without significantly eroding profitability.