Just Dial shares rally 15%, biggest gain in two years after strong Q1 performance

Shares of Just Dial surged nearly 15% on Monday, marking their biggest single-day gain in two years, after the Reliance Retail Ventures-backed local search platform reported a strong set of June quarter earnings and announced a key leadership transition.

Just Dial shares rallied as much as 14.8% to ₹648 on the BSE in early trade. At the time of writing, the stock was trading at ₹643.50, up 13.97%, with a market capitalisation of ₹5,477 crore. This marked its sharpest intraday gain since July 18, 2024, when the stock had rallied 20% in a single session.

The stock hit a 52-week high of ₹957.90 on July 15, 2025, and a 52-week low of ₹480.05 on March 30, 2026. The counter has declined nearly 11% so far in calendar year 2026 and is down nearly 30% over the past one year. However, the small-cap stock has rebounded nearly 20% over the past one month.

Reliance Retail Ventures Ltd (RRVL), led by Mukesh Ambani, held a 63.84% stake in Just Dial as of March 31, 2026.

What fuelled the rally in Just Dial shares?

For the quarter ended June 2026, Just Dial reported a 4.1% year-on-year increase in net profit to ₹166.2 crore, while revenue rose 9.9% to ₹327.5 crore. On the operating front, EBITDA (earnings before interest, taxes, depreciation and amortisation) increased 1.1% year-on-year to ₹87.4 crore, while the EBITDA margin stood at 26.7% in Q1 FY27.

Operationally, total active listings rose 13% year-on-year to 56.1 million as of June 30, 2026, while active paid campaigns increased 3.5% to 639,200. Total unique visitors stood at 192.9 million, broadly flat year-on-year but up 5.8% sequentially.

Commenting on the performance, Chief Growth Officer Shwetank Dixit said the company had begun FY27 on a strong note, with revenue growing 6.6% quarter-on-quarter, its fastest sequential growth in a decade outside the post-pandemic recovery period.

"This performance reflects focused execution across our core business, alongside sustained investment in technology capabilities that are now translating into tangible outcomes," Dixit said.

ICICI Securities retains 'Buy' rating

Brokerage ICICI Securities said revenue growth was driven by a 3.5% increase in paid campaigns and pricing-led improvements, while collections rose 13.7% year-on-year despite largely flat web traffic. It has maintained its 'Buy' rating on the stock, while revising its target price to ₹825 from ₹968 earlier.

The brokerage noted that the EBITDA margin contracted by 233 basis points year-on-year due to headcount expansion, with the company adding 267 employees during the quarter, and higher marketing investments.

ICICI Securities also highlighted the company's management overhaul. Founder VSS Mani will step down as Chief Executive Officer and Managing Director on July 31 after leading the company for 33 years. Dinkar Ayilavarapu, a former Flipkart executive, has been appointed CEO-designate and will assume the role of CEO from August 1. The company has also appointed Dinesh Taluja as its Chief Financial Officer.

"We believe improving clarity on this management transition could help rerate the stock," ICICI Securities said.

The brokerage said key upside triggers include improved visibility on cash distribution to shareholders and stronger-than-expected growth in paid campaign conversions, while downside risks include slower growth in paid campaigns and a lack of clarity on capital distribution.