Justdial posted a net profit of ₹166 crore in the first quarter of fiscal 2026-27, marking a slight 4.1% increase year-over-year amid steady revenue gains and elevated operating costs. The company also announced the departure of cofounder and long-time CEO VSS Mani, who will step down after 33 years, with Flipkart veteran Dinkar Ayilavarapu set to take the helm.
- Q1 net profit increased 4.1% to ₹166 crore
- Founder CEO VSS Mani to step down after 33 years
- Flipkart veteran appointed as new CEO starting August 1
What happened
Justdial reported a net profit of ₹166 crore in the first quarter of fiscal year 2026-27, a year-on-year increase of 4.1% from ₹159.6 crore, with sequential profit growth of 66.2%. The company’s operating revenue rose by 9.9% compared to the previous year, reaching ₹327.5 crore, supported by other income, pushing total income to ₹458.9 crore. However, operating expenses rose by 11.5% year-on-year to ₹252.3 crore, leading to a slight uptick of only 1.1% in operating EBITDA, while the operating EBITDA margin declined by 233 basis points to 26.7%.
Along with these financial disclosures, Justdial announced that founder VSS Mani will step down from his role as CEO and managing director after 33 years at the company, effective July 31. This change follows Reliance Retail’s majority acquisition of Justdial in 2021. Dinkar Ayilavarapu, a former Flipkart executive with extensive experience in e-commerce and consulting, will succeed Mani as CEO from August 1. The company also appointed Dinesh Taluja as chief financial officer, succeeding Abhishek Bansal who stepped down earlier this year.
Why it matters
Justdial's modest profit growth amid rising expenses reflects the challenges faced by legacy Indian digital classifieds platforms in maintaining robust growth against increasing competition from specialized players like Google for general search, Zomato in food services, and Practo for healthcare listings. The slowing traffic growth and operating margin contraction highlight the pressure on core business models.
The CEO transition is a significant shift for Justdial, as VSS Mani had led the company since its inception in 1993 and through major evolution phases, including post-Reliance acquisition strategies. The appointment of Dinkar Ayilavarapu signals Reliance's intent to inject fresh leadership perspectives focused on leveraging technology investments and accelerating growth amid a changing market landscape. This leadership change may set the stage for new business initiatives and operational efficiencies.
What to watch next
Stakeholders and market observers will closely monitor how Justdial’s new CEO guides the company in competing with dominant players in India's digital local search and classifieds space, especially in terms of user engagement and monetization. Key performance indicators to watch include traffic growth across mobile and voice platforms, active listings expansion, and improvements in operating margins.
Additionally, the company's ability to translate sustained technology investments into tangible outcomes will be crucial. Further executive moves and strategic pivots under the refreshed leadership could influence Justdial’s trajectory. Investors will also keep an eye on the impact of these leadership changes on share performance and the company's positioning in the increasingly competitive Indian internet services market.