Info Edge's Shiksha Faces Billing Decline Due to AI Search Changes

Info Edge's education business, Shiksha, experienced a 27.2% year-on-year decrease in billings, falling to Rs 20.5 crore in the quarter ending September 2026 (Q2 FY27). The company cited the growing impact of Google's AI-generated search summaries, which provide direct answers to user queries, as a primary reason for reduced traffic to the Shiksha platform.

In a regulatory filing, Info Edge stated that AI-driven search is increasingly answering user queries directly, thereby reducing search referrals to platforms like Shiksha. This shift has created significant headwinds for Shiksha, which relies heavily on search engine referrals for user acquisition.

Despite Shiksha's challenges, Info Edge's other major business verticals—recruitment (Naukri), real estate (99acres), and matchmaking (Jeevansathi)—reported growth in billings. Naukri's billings increased by 12.6% to Rs 613 crore, 99acres rose to Rs 148.3 crore, and Jeevansathi saw an 18.4% rise to Rs 39.7 crore.

Info Edge Managing Director Hitesh Oberoi explained that Shiksha's dependency on third-party distribution channels makes it more vulnerable to changes in search behavior compared to businesses like Naukri, where the company controls both sides of the marketplace. AI enhances these marketplace businesses by improving matching, but it has negatively impacted Shiksha's traffic-dependent model.

Shiksha is actively adapting by diversifying its revenue streams and reducing reliance on search traffic. Initiatives include expanding domestic counseling services and focusing on its Study Abroad platform. While these changes are expected to yield results over the medium term, billings growth is likely to remain under pressure in the interim.