Just Dial Q4 PAT Tanks 37%; Long-serving CFO Resigns as FY26 Ends on Mixed Note

Synopsis: Just Dial posted its audited FY26 results on April 13, reporting net revenue growth of around 6 percent even as full-year PAT declined roughly 15 percent YoY to Rs.497 crore, dragged by lower investment income and a one-time exceptional charge. The board simultaneously disclosed the resignation of CFO Abhishek Bansal, effective April 15, after over 12 years with the company, with no successor named yet.

India’s dominant local search platform closed FY26 with its core advertising business showing steady traction, but the headline profit number told a different story. A combination of mark-to-market investment income normalising lower and a one-time exceptional charge from new labour codes weighed on the bottom line even as operating margins held near their recent best levels.

Adding to the investor note-pile: the company’s CFO of eight years tendered his resignation the same day the results were approved. With a market capitalization of Rs. 4,864.55 crore, the shares of Just Dial Limited were trading at Rs. 572 per share as of April 13, 2026. The stock has delivered a return of -35 percent over the last year. It is trading at a P/E of 9.78.

FY26 Results

Net revenue from operations for the full year ended March 31, 2026 came in at Rs.1,213.86 crore, up 6.3 percent from Rs.1,141.93 crore in FY25. That steady topline growth is consistent with the trajectory seen across quarters. The company has now grown quarterly net revenues from Rs.221 crore in December 2022 to Rs.306 crore in December 2025, without a single down quarter in between.

Operating performance has also materially improved. OPM expanded from around 21 percent in FY24 to approximately 29-30 percent through FY25 and into FY26, reflecting operating leverage on a largely fixed employee cost base. Total employee expenses for FY26 stood at Rs.726.83 crore, rising only modestly against revenue growth which is the margin story the core business is telling.

Where FY26 disappointed was below the operating line. Other income fell to Rs.333.86 crore from Rs.386.54 crore in FY25. This line item, amounting to nearly 27 percent of total income, is inherently mark-to-market and therefore volatile. It is also not operational income. Full-year PAT consequently came in at Rs.497.02 crore, down 14.9 percent from Rs.584.20 crore in FY25.

The Q4 FY26 quarter showed a sharper drop: PAT of Rs.100 crore versus Rs.157.6 crore in Q4 FY25, though Q4 figures are derived as a balancing figure against audited full-year and limited-reviewed nine-month numbers, as the auditors note.

The board recognised a one-time past service cost of Rs.21.08 crore in FY26 under Ind AS 19, arising from amendments to the definition of “wages” under the new labour code on Social Security, 2020, effective November 21, 2025. The revision expanded gratuity coverage to fixed-term employees and altered the wage calculation base. This is a non-recurring charge; absent it, reported PAT would have been approximately Rs.518 crore.

Abhishek Bansal, who had served as CFO and Key Managerial Personnel for over eight years out of a total 12-year association with Just Dial, submitted his resignation citing personal career considerations. He confirmed in his resignation letter that the decision was not connected to the company’s operations, financial reporting, audit processes, or governance matters. His last working day is April 15, 2026.

The resignation of a long-serving CFO at the same time as annual results are released is a disclosure-sensitive event regardless of stated reasons. Just Dial has not named a successor, and the transition timeline leaves the KMP finance slot open heading into a new financial year. Investors will likely watch for a successor announcement and the pace of transition closely.

Business Overview

Incorporated in 1993, Just Dial operates India’s largest local search platform, covering 11,000-plus pincodes across 250-plus cities with approximately 12,000 employees in telesales and field marketing roles. The company derives around 70 percent of revenues from the top 11 cities. Just Dial holds no subsidiaries or associates and is not required to file consolidated results.

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