Just Dial jumps 10% as Kotak retains Buy; Q1 revenue rises 9.9%
Just Dial shares climbed 10% after Kotak Institutional Equities retained its Buy call and set a Rs 1,175 target. Q1FY27 revenue rose 9.9% year on year to Rs 327.5 crore, while management prioritised merchant acquisition, B2B collections and AI-led sales and listing workflows.
What happened
Just Dial shares rose 10% after Kotak retained its Buy rating. New management is prioritising merchant acquisition, product launches, B2B collections and AI-led
Key facts
- 10% share-price rise
- Rs 1,175 target price
- Rs 704.65 intraday high
- 1.6% FY2026 collections growth
- Rs 327.50 crore Q1FY27 revenue
- 9.9% YoY revenue growth
- 6.6% QoQ revenue growth
- Rs 87.40 crore operating EBITDA
- 1.1% EBITDA growth
- Rs 166.20 crore net profit
- 4.1% YoY net-profit growth
- 19.29 crore unique quarterly visitors
- 5.61 crore business listings
Why this matters
Just Dial’s merchant network, B2B collections focus and AI-enabled discovery tools strengthen its strategic value in India’s local-commerce ecosystem.
What to watch
- Q2 revenue growth sustaining or exceeding Q1's 9.9% year-on-year pace.
- Paid merchant/campaign growth, renewal trends and ARPU improvement.
- Collection days, bad-debt provisions and the gap between billed revenue and cash realization.
- Operating-margin trajectory versus sales, marketing and AI-related investment.
- Management commentary on AI workflow adoption, productivity gains and conversion-rate impact.
- Competitive intensity from Google Search/Maps, social platforms and category-specific discovery apps.
- Whether the stock sustains gains toward Kotak's Rs 1,175 target after the initial 10% re-rating.
- Track quarterly paid-campaign additions, renewal rates and average revenue per merchant rather than headline traffic alone.
- Expand AI tools from internal sales/listing workflows into merchant-facing lead qualification, content creation and customer-response products.
- Tighten B2B collections through credit scoring, automated reminders and incentives tied to sales-team realization rather than gross bookings.
- Use the share-price strength selectively for talent, product investment or partnership visibility, while avoiding a spending surge that delays margin leverage.
- Demonstrate whether new merchant acquisition is translating into higher-quality leads and repeat advertiser spend across key local-service categories.