Info Edge’s education platform Shiksha reported a 23% year-on-year decline in billings to Rs 35 crore in Q1 FY27, impacted by reduced referral traffic from Google Search amid AI-driven changes. Revenue fell 12% to Rs 44 crore, while profit before tax dropped 49% to Rs 3 crore. Cash from operations was negative Rs 7 crore during the April-June quarter, according to the company’s investor presentation.
During the Q1 FY27 earnings call, Info Edge managing director Hitesh Oberoi explained that Shiksha’s dependence on external distribution channels like Google Search became a disadvantage as AI altered user search behavior. In contrast, other Info Edge businesses such as Naukri, 99acres, and Jeevansathi, which have proprietary data and direct marketplace access, recorded growth in billings and revenue by leveraging AI for monetization.
The contrasting performance highlights how AI adoption benefits platforms with integrated data control, while those reliant on third-party channels face headwinds. Naukri’s recruitment business, serving both job seekers and employers, exemplifies this advantage. Shiksha’s challenge lies in its lack of direct control over user traffic sources, which AI-driven search changes disrupted, affecting its monetization and profitability.
Info Edge’s Q1 FY27 investor presentation and earnings call on August 10 detailed these impacts, marking a clear divergence in AI’s effect across its portfolio. The company’s other verticals continue to capitalize on AI, while Shiksha adjusts to the evolving digital landscape.