Reliance Retail-owned hyperlocal search engine Justdial continues to set benchmarks, reporting impressive growth in profit and revenue in Q3 FY25.
A Record-Breaking Quarter
Justdial, the popular hyperlocal search engine owned by Reliance Retail, reported a 42.7% year-on-year (YoY) increase in net profit, reaching INR 131.50 Cr for the quarter ending December 31, 2024. This marks a significant leap from INR 92.11 Cr in the same quarter last year.
However, profit took a slight dip of 14.3% sequentially from the previous quarter’s INR 153.52 Cr. Despite this, Justdial maintained its momentum with revenue hitting a new high of INR 287.33 Cr, growing 8.4% YoY and 0.9% quarter-on-quarter (QoQ).
Top-Line and Traffic Insights
The company’s overall income, including INR 77.41 Cr from other sources, stood at INR 364.74 Cr. Its EBITDA rose by 43.4% YoY to INR 86.6 Cr, expanding the EBITDA margin to 30.1% compared to 22.8% in the same quarter last year.
Meanwhile, the platform’s total traffic grew 15.3% YoY, reaching 19.12 Cr visits. However, a minor 3.5% dip in traffic QoQ was attributed to the impact of festival weeks during the quarter, which the company had anticipated.
Key Growth Drivers
Justdial attributed its revenue growth to several strategic initiatives aimed at enriching its platform content. These included:
- Creating in-depth information and comprehensive catalogues.
- Offering buying guides and price ranges for services.
- Geocoding 3.18 Cr listings, up 20.4% YoY.
- Adding 21.60 Cr images to listings, a 23% YoY increase.
These efforts have significantly enhanced the user experience, driving traffic and engagement.
Evolving Sales Strategies
In a major shift, Justdial revamped its sales approach by moving away from traditional cold calling. The company adopted a targeted and multiplatform strategy, leveraging social media, email, messaging apps, and in-platform interactions to engage businesses at various points in their buying journey. This new strategy aims to reduce costs and generate high-potential leads effectively.
Focus on Operational Efficiency
Justdial successfully managed to trim its expenses, which stood at INR 215.57 Cr, down 1.6% YoY. The largest cost component, employee expenses, fell by 3% to INR 173.17 Cr. Other expenses rose marginally by 5.3% YoY to INR 27.56 Cr, reflecting the company’s focus on optimizing operations while investing in growth initiatives.
A Message from the Leadership
“Our focus remains on driving top-line growth while maintaining operational efficiency, as reflected in our Q3 results. By enhancing our offerings for users and providing businesses with advanced tools, we are unlocking opportunities for MSMEs and inspiring growth stories,” said Shwetank Dixit, Chief Growth Officer of Justdial.
Future Outlook
With 4.75 Cr businesses listed on its platform—a 14.2% YoY increase—Justdial continues to be a vital resource for small and medium businesses across India. By doubling down on content enrichment, innovative strategies, and operational efficiency, the company is positioning itself as a leader in the hyperlocal search engine space.
Shares Performance
Despite the impressive results, shares of Justdial ended 3.75% lower at INR 1,034.60, reflecting broader market trends.
