36% profit crash! Just Dial stock falls 5% — but analysts say 80% upside still on the table

Shares of Just Dial Limited slid as much as 5 per cent on Wednesday, April 15, after the company’s March quarter numbers failed to excite investors. The reaction on the Street was swift, with the stock turning weak soon after the earnings were digested.

Growth stays slow

There was little change in the company’s growth trajectory. Revenue in the fourth quarter inched up just 0.5 per cent compared to the previous quarter and rose 6.3 per cent from a year ago. The full-year picture looked no different, with FY26 growth also coming in at 6.3 per cent.

For a business that depends heavily on local advertising and paid listings, the numbers suggest demand hasn’t really picked up in a meaningful way.

Margins cool off a bit

Margins, while still decent, slipped from the previous quarter. EBITDA margin came in at 28.9 per cent, down from 31.2 per cent in the December quarter and slightly below 29.8 per cent a year ago.

It’s not a collapse, but it does show that the company isn’t getting much operating leverage right now. Without stronger revenue growth, maintaining margins at earlier levels is getting tougher.

Profit takes a hit

The bigger disappointment came on the bottom line. Profit after tax fell 15.2 per cent sequentially and 36.5 per cent compared to last year.

A large part of that drop came from other income, which fell sharply to Rs 48.6 crore from Rs 84.6 crore in the previous quarter. The company took a hit on its treasury investments due to mark-to-market losses, which dragged overall earnings down.

There was also an exceptional loss in the year-ago quarter, but even after accounting for that, profit performance this time looked weak.

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Core metric still sluggish

One number that stood out was paid campaign growth. It rose just 3 per cent sequentially — the slowest pace seen in four years. That’s a key metric for Just Dial, since it reflects how many businesses are actually paying to be listed and promoted on the platform. A slowdown here points to weak traction where it matters most.

Cash pile remains strong

If there’s one thing working in the company’s favour, it’s the balance sheet. Cash and equivalents stood at Rs 5,852 crore at the end of the quarter. That gives the company enough cushion to navigate slow phases and also invest when needed. But for now, the market seems more focused on growth than cash reserves.

CFO steps down

Alongside the results, the company also announced that its Chief Financial Officer, Abhishek Bansal, has resigned. Abhishek Bansal will step down at the close of business on April 15, 2026, citing personal career reasons.

He had been with the company for 12 years, including more than eight years as CFO. His exit, coming right after a weak set of numbers, adds another layer of uncertainty for investors.

Brokerages stay positive, but trim targets

Despite the weak quarter, brokerages largely maintained a constructive stance on the stock. Citi has maintained a ‘Buy’ rating on Just Dial Limited, but cut its target price to Rs 900 from Rs 1,000, reflecting tempered expectations after the Q4 performance.

Separately, JM Financial also retained its ‘Buy’ call, with a target of Rs 1,000, implying a potential upside of around 80 per cent from current levels.

The brokerage flagged that collections — a key lead indicator for revenue — were flat on a year-on-year basis in Q4. It also noted that net paid campaigns rose by just 2,400 sequentially, compared with stronger additions of 5,200, 6,600, and 4,000 in the previous three quarters.

Traffic growth remained weak at 4.7 per cent year-on-year, despite higher advertising and promotion spends. The company spent Rs 10.2 crore on advertising in the quarter, compared with lower spends in earlier periods.

On the operating side, EBITDA rose 3.1 per cent year-on-year to Rs 88.8 crore, though margin slipped slightly.

JM Financial also highlighted that lack of clarity on cash distribution continues to weigh on sentiment. It pointed out that the company’s cash and investments exceed its current market capitalisation by about 20 per cent, but any meaningful upside in the stock would depend on clearer guidance on how that cash is deployed.

Street not impressed

Put together, there wasn’t much in the update to cheer about. Growth remains slow, profit has taken a hit, and the core business isn’t showing strong signs of acceleration. That was enough for the Street to hit the sell button, pushing the stock lower during the session.