Justdial, a digital classifieds platform, reported a 37% year-over-year decline in net profit to ₹100 Cr for the fourth quarter of fiscal year 2025-26 (FY26). The company’s PAT also fell 18% sequentially from ₹118.1 Cr. Alongside the financial update, Justdial announced the departure of its chief financial officer (CFO) Abhishek Bansal, who had served in the role for nearly 12 years and would continue to serve until April 15, according to the company’s statement referenced by Inc42 Media.
The quarterly numbers—operating revenue growth alongside expense growth—reflect the economics of operating a marketplace platform: digital classifieds businesses depend on repeatable revenue from listing and lead generation, and they face ongoing pressure to manage costs as they scale product and operations.
Q4 FY26: Revenue Up, Profit Down
In the quarter ended March, Justdial’s operating revenue increased 6% year-over-year (YoY) and 0.5% quarter-over-quarter (QoQ) to ₹307.2 Cr. The company also recorded other income of ₹48.6 Cr, bringing total income for the quarter to ₹355.9 Cr.
At the same time, Justdial’s cost structure moved in the opposite direction. Total expenses rose 6% YoY and 3% QoQ to ₹231.2 Cr. The combination of modest QoQ revenue growth and faster QoQ expense growth explains the decline in the company’s bottom line: the net profit decline reflects the reported changes in revenue and expenses, though the report does not break down specific expense categories.
The direction of the numbers suggests that Justdial’s Q4 economics faced pressure, even as top-line operating revenue continued to grow. Without detailed expense breakdowns, the specific drivers of cost increases cannot be determined from the available information.
Sequential Pressure and Full-Year Context
On a sequential basis, the company’s PAT dipped 18% from ₹118.1 Cr. That sequential decline is notable because operating revenue only increased 0.5% QoQ to ₹307.2 Cr. In other words, the company’s ability to translate incremental operating revenue into profit weakened quarter-over-quarter, consistent with expenses rising more quickly than revenue.
For the full fiscal year FY26, Justdial reported that net profit slipped 15% YoY to ₹497 Cr. Operating revenue, however, increased 6% YoY to ₹1,213.9 Cr. This split—revenue growth with profit contraction—indicates that costs increased faster than revenue over the year, or margins compressed due to factors not detailed in the report.
CFO Transition
Alongside results, Justdial announced the departure of its CFO Abhishek Bansal after a nearly twelve-year tenure. The report states that Bansal joined Justdial in 2014 as VP for corporate strategy and later served as CFO. He resigned to pursue opportunities outside Justdial. Bansal explained: “This decision is based on personal career considerations, including my intention to take a short professional break and explore opportunities outside the company.”
Bansal would continue to serve as Justdial’s CFO until April 15. The source does not include details on a replacement or interim arrangements.
What to Watch Next
Justdial’s Q4 outcomes highlight a pattern that technology investors and operators track in marketplace businesses: whether revenue growth keeps pace with cost growth, and whether sequential profitability improves as a platform matures.
From the data provided, operating revenue growth continued in Q4—up 6% YoY and 0.5% QoQ—but profitability declined—net profit down 37% YoY to ₹100 Cr and PAT down 18% sequentially. Total expenses increased 6% YoY and 3% QoQ to ₹231.2 Cr. Observers may watch whether subsequent quarters show operating revenue accelerating faster than expenses, or whether the company can stabilize its cost base.
The CFO transition also creates an operational variable. While the source does not specify a new CFO, it establishes that Bansal will remain in the role until April 15. Industry watchers typically monitor continuity in financial reporting cadence and any changes in how management frames cost and revenue drivers.
Justdial’s full-year results—net profit down 15% YoY to ₹497 Cr with operating revenue up 6% YoY to ₹1,213.9 Cr—provide a baseline for assessing whether the company’s FY26 profitability contraction is a one-quarter issue or a longer trend. The data suggests that scaling a classifieds platform’s capabilities and reach may require tighter control of expense growth to preserve margins, particularly when revenue growth is moderate.
Source: Inc42 Media