Shiksha Faces Challenges in Education Sector

Shiksha, part of Info Edge’s education sector, encountered traffic and demand-related challenges in Q1 FY27. The company indicated that this slowdown is partly linked to adjustments in Google search as a result of the growing impact of AI.

As outlined in the company’s Q1 FY27 earnings presentation, Shiksha experienced a 22.8% year-on-year decline in billings, amounting to Rs 35 crore for the quarter. Revenue reduced by 11.9%, resulting in Rs 44 crore. The operating profit before tax (PBT) fell by 48.8% compared to the previous year, settling at Rs 3 crore. Furthermore, cash from operations recorded a negative Rs 7 crore.

This decline in traffic is attributed to the influence of AI-generated search experiences on referral traffic from Google, which is a primary acquisition source for content-driven platforms such as Shiksha. In response to the diminishing traffic, the platform is investing in comprehensive and engaging content for students while also enhancing its domestic counselling services. Additionally, Shiksha plans to keep investing in its Study Abroad platform.

Market Trends in Overseas Education

The overseas education market is currently undergoing noteworthy changes. Info Edge has indicated that interest from students wishing to study in the US is waning, while there is a noticeable shift in preference towards the UK, Australia, and European countries. This evolving landscape may necessitate that Shiksha adjusts its offerings and counselling services to cater to various study destinations.

Scalable Platform and Impact

Despite facing short-term hurdles, Shiksha operates on a significant scale. The platform boasts a listing of over 68,000 colleges and 574,000 courses, encompassing more than 1,150 entrance examinations. From July 2025 to June 2026, it recorded upwards of 6.3 million annual registrations, 467 million page views, and 228 million visits.

In the financial report for Q1 FY27, Info Edge recorded consolidated revenue of Rs 881 crore from operations, with Shiksha contributing approximately 5% of this total operating revenue. Meanwhile, the company’s overall profit surged by 43% year-on-year, reaching Rs 490 crore during the quarter.