Reliance Retail-owned Justdial has reported a robust 42.7% year-on-year increase in net profit to ₹131.50 crore for Q3 FY25, demonstrating strong growth in Tamil Nadu’s digital business landscape. The hyperlocal search platform, which maintains a significant presence in the state with over 40,000 registered businesses from Chennai alone, achieved this despite a sequential decline of 14.3% from the previous quarter’s ₹153.52 crore.
The company’s performance reflects the growing digital adoption among Tamil Nadu’s small businesses, with net revenue from operations reaching an all-time high of ₹287.33 crore, marking an 8.4% increase year-on-year. Including other income of ₹77.41 crore, the total income stood at ₹364.74 crore for the quarter.
A notable highlight of the quarter was the significant improvement in operational efficiency, with EBITDA rising 43.4% year-on-year to ₹86.6 crore. The EBITDA margin expanded considerably to 30.1% from 22.8% in the year-ago quarter, indicating stronger profitability metrics.
“Our focus remains on driving top line growth while maintaining operational efficiency,” says Shwetank Dixit, Justdial’s chief growth officer. “By enhancing our offerings for users and providing businesses with easy-to-use, advanced tools, we are creating sustainable growth for all stakeholders. Stories of growth of small and medium businesses through Justdial continues to inspire us to keep pushing boundaries and unlock opportunities for MSMEs.”
The platform reported total traffic of 19.12 crore during the quarter, representing a 15.3% year-on-year increase, though there was a 3.5% sequential decline attributed to the festival season impact. The company’s business listings grew to 4.75 crore, showing a healthy 14.2% year-on-year growth.
“Justdial’s performance reflects the increasing digitalization of Tamil Nadu’s MSME sector,” observes Dr. Rajesh Kumar, Director of the Chennai Digital Commerce Association. “The platform’s growing adoption among local businesses indicates a shift towards digital discovery platforms, particularly in tier-2 and tier-3 cities across the state.”
The company has implemented several strategic initiatives, including enhanced platform content and a revised sales approach. Moving away from traditional cold calling, Justdial has adopted a multi-platform engagement strategy utilizing social media, email, and messaging apps. This new approach has particular relevance for Tamil Nadu’s digital ecosystem, where mobile-first internet usage continues to grow.
On the operational front, Justdial managed to optimize its expenses, which decreased to ₹215.57 crore, down 1.6% year-on-year. Employee expenses, the company’s largest cost component, saw a 3% reduction to ₹173.17 crore, while other expenses increased marginally by 5.3% to ₹27.56 crore.
For Tamil Nadu’s startup ecosystem, Justdial’s performance sets a benchmark for sustainable growth in the digital services sector. The company’s success in balancing growth with profitability offers valuable lessons for the state’s emerging digital businesses, particularly in the B2B discovery and listings space.
The market response, however, was mixed, with the company’s shares closing 3.75% lower at ₹1,034.60, reflecting broader market sentiments despite the strong operational performance.
