AI impacts Info Edge's Shiksha service, not Naukri

Info Edge's education arm, Shiksha, experienced significant headwinds in the first quarter, with reduced referral traffic from Google Search impacting billings. The company reported that AI-related changes have diminished traffic to Shiksha, leading to a 23% year-on-year drop in billings to Rs 35 crore for the April-June period.

Revenue fell by 12% to Rs 44 crore, and profit before tax slumped by 49% to Rs 3 crore. Managing Director Hitesh Oberoi explained that unlike Info Edge's other platforms such as Naukri (recruitment), 99acres (real estate), and Jeevansathi (matrimony), Shiksha relied on external distribution channels for information discovery. As AI has altered user search behavior, this dependency became a disadvantage.

According to Oberoi, within Info Edge's core businesses where it controls both sides of the marketplace (e.g., job seekers and employers on Naukri), AI enhances matching recommendations and customer outcomes. Conversely, AI-driven shifts in user discovery and search behavior have created headwinds for services like Shiksha, which are more reliant on third-party distribution.

Despite these challenges, Shiksha is working to counter the AI impact by investing in domestic counseling services and AI chatbots. It has also strengthened its overseas study services to address shifting trends, such as increased interest in the UK and Australia. The company anticipates that growth in these services will gradually offset the negative effects of AI in the near term.