Just Dial shares experienced a remarkable surge on Monday, 19 October, closing 2.82% higher at ₹732.55 on the BSE ahead of the company's Q2 FY27 earnings announcement. The stock rose ₹20.50 during the session, building on the earlier momentum that saw shares jump 13% in intraday trading. According to reports from Business Standard, the strong performance was accompanied by significant volume activity, with trading volume surging 115 times the normal levels, indicating significant investor interest. As per Informist, shares were trading at ₹795.15 on the National Stock Exchange at 1028 IST, up over 11% from Friday's close.
Just Dial announced strong financial results for the second quarter of FY27, with revenue from operations growing 13.11% year-on-year to ₹342.82 crore compared with ₹303.07 crore in the corresponding period last year, as reported by Business Standard. Net profit for the quarter declined 9.73% to ₹107.8 crore from ₹119.44 crore in the same quarter last year. The company reported total income rising 5.6% to ₹397.38 crore in the September quarter. Total expenses stood at ₹262.81 crore, up 14.6% year-on-year, which contributed to the profit decline despite revenue growth. The company, owned by Reliance Retail Ventures, the retail arm of billionaire Mukesh Ambani-led Reliance Industries Ltd, reported these results in its regulatory filing.
Brokerage estimates for the quarter show mixed but positive financial expectations, with the actual results now confirmed. Kotak Securities estimated Just Dial's revenue at ₹3.33 billion, while ICICI Securities projected the top line at ₹3.37 billion. The company's earnings before interest, tax, depreciation, and amortisation is expected to grow marginally to ₹874 million. However, Kotak Securities noted that Just Dial's EBITDA margin is expected to decline by 10 basis points to 26.6% on quarter due to higher expenses and volatile other income.
The current surge builds on Just Dial's strong performance over the past six months, with the stock gaining nearly 40% during this period. As reported by Mint, the stock has demonstrated significant volatility throughout the year, hitting a 52-week high of ₹838 on 15 July and a 52-week low of ₹486.05 on 30 March. On a monthly basis, the stock is up 12% so far in October, positioning it to potentially snap its two-month losing streak. According to Informist, the stock has risen more than 17% since the company announced its June quarter results on July 11.
Market experts maintain positive outlooks for Just Dial's prospects ahead of the earnings announcement. All three brokerage reports available with Informist have a 'buy' recommendation on the stock with an average target price of ₹975 per share, which is roughly 23% higher than the stock's current market price. Vipin Kumar, AVP-Research at Globe Capital Market, highlighted that Just Dial has formed a higher low and is trading above both key long-term and short-term moving averages, with a decisive close above ₹840 potentially leading toward ₹950 in the near term.
