Justdial Q1 profit hits ₹166 Cr as founder VSS Mani exits

Key Takeaways

• Justdial's Q1 FY27 net profit rose 4.1% YoY to ₹166 Cr, while operating revenue grew 9.9% to ₹327.5 Cr
• Founder VSS Mani steps down as CEO after 33 years; ex-Flipkart executive Dinkar Ayilavarapu takes charge August 1
• EBITDA margin contracted 233 basis points to 26.7% as expenses rose faster than revenue

Justdial reported a net profit of ₹166 Cr in Q1 FY27, a modest 4.1% increase from ₹159.6 Cr in the same quarter last year. The bigger news: founder VSS Mani is stepping down as CEO and managing director on July 31, ending a 33-year run at the company he built from a single telephone line in 1996.

Operating revenue climbed 9.9% year-on-year to ₹327.5 Cr, marking the company's fastest sequential growth in a decade outside the post-COVID recovery period. But profitability tells a more complicated story. EBITDA margins fell 233 basis points to 26.7% as total expenses jumped 11.5% to ₹252.3 Cr, outpacing revenue growth.

Why is VSS Mani leaving Justdial now?

Mani's exit comes nearly four years after Reliance Retail acquired a majority stake in the platform for ₹3,497 Cr in 2021. He stayed on through the ownership transition, but the company now faces structural challenges that demand fresh thinking.

Justdial's core problem is competition from vertical players. Google handles local search natively. Zomato owns food discovery. Practo dominates doctor searches. The horizontal local search model that made Justdial a pioneer in the late 1990s now competes against specialists who own their categories.

Traffic numbers reflect this pressure. Unique visitors stood at 19.3 Cr in Q1, down 0.2% from last year. The company is adding listings, with active listings up 13% YoY to 5.6 Cr, but converting that supply into traffic growth remains the challenge.

“We started FY27 on a strong note, with revenue growing 6.6% QoQ, our fastest sequential growth in a decade outside the post-COVID recovery period. This performance reflects focused execution across our core business, alongside sustained investment in technology capabilities that are now translating into tangible outcomes.”

— Shwetank Dixit, Chief Growth Officer, Justdial

Who is the new Justdial CEO?

Dinkar Ayilavarapu, a former Flipkart Wholesale executive, takes over as CEO on August 1. An IIM Calcutta alumnus with over two decades of experience at Flipkart, Accenture, and Bain & Company, his background suggests Reliance wants to bring e-commerce execution discipline to Justdial's operations.

The finance function is also changing hands. Dinesh Taluja, who resigned as a non-executive director on July 10, becomes CFO effective July 11. He replaces Abhishek Bansal, who left after twelve years to pursue external opportunities.

This is a full leadership reset. Reliance is installing operators with large-scale platform experience, signaling that Justdial's next phase will look different from its founder-led era.

What do the Q1 FY27 numbers actually show?

The headline profit figure obscures some weakness. Yes, net profit is up 4.1% YoY. But operating EBITDA grew just 1.1% to ₹87.4 Cr. The gap between profit growth and operating performance comes from other income, which contributed ₹131.5 Cr in Q1. That's treasury income, not core business strength.

Sequential numbers look better. Profit jumped 66.2% from ₹100 Cr in Q4 FY26, and revenue grew 6.6% quarter-on-quarter. If Justdial can sustain that sequential momentum, the annual picture improves. But one quarter doesn't establish a trend.

The platform remains overwhelmingly mobile. Of 19.3 Cr unique visitors, 86.5% came from mobile, 10.6% from desktop, and just 2.9% from the legacy voice platform. The voice business that gave Justdial its name is now a rounding error.

How did the market react?

Shares closed 3.42% higher at ₹564.6 on the BSE following the announcements. The market seems to view the leadership transition positively, or at least not negatively. Mani's departure had been speculated since the Reliance acquisition; formalizing the succession removes uncertainty.

What happens to Justdial under Reliance?

Reliance Retail paid ₹3,497 Cr for its majority stake in 2021. Three years later, the strategic logic remains unclear. Justdial hasn't been integrated into JioMart or other Reliance consumer platforms in any visible way. It operates as a standalone entity with Reliance backing but no obvious synergies.

The new leadership team may change that. Ayilavarapu's Flipkart background suggests he understands marketplace dynamics. Whether Reliance deploys Justdial as a local commerce play, a lead generation engine for JioMart, or something else entirely will define the company's next chapter.

Frequently Asked Questions

What was Justdial's Q1 FY27 net profit?

Justdial reported a net profit of ₹166 Cr in Q1 FY27, up 4.1% from ₹159.6 Cr in Q1 FY26 and up 66.2% sequentially from ₹100 Cr in Q4 FY26.

Why is VSS Mani stepping down from Justdial?

Mani is leaving after 33 years as the company transitions to new leadership under Reliance Retail's ownership. Reliance acquired a majority stake in 2021 and is now installing its own executive team.

Who is replacing VSS Mani as Justdial CEO?

Dinkar Ayilavarapu, a former Flipkart Wholesale executive with over two decades of experience including stints at Accenture and Bain, takes over as CEO on August 1, 2025.

When did Reliance acquire Justdial?

Reliance Retail acquired a 66.95% stake in Justdial for approximately ₹3,497 Cr in 2021.

How many users does Justdial have?

Justdial reported 19.3 Cr unique visitors in Q1 FY27, with 86.5% accessing the platform via mobile devices.

Source: Inc42 Media / Team Inc42