Investment volatility in Info Edge was markedly observed with its stakes in Eternal and PB Fintech during FY26, highlighting fluctuations in the technology stock market. As revealed in the company’s annual filings, Info Edge noted an unrealised fair value increase of Rs 3,296 crore concerning its shares in Eternal Limited (previously Zomato) during FY26. However, in Q4 FY26 alone, the company recorded an unrealised fair value decrease of Rs 5,874 crore on this investment, which resulted in a steep drop in Eternal’s stock price in the quarter ending in March.
The firm’s investment in PB Fintech also faced notable volatility throughout the year. In Q4 FY26, Info Edge registered an unrealised fair value loss of Rs 2,287 crore for its PB Fintech shares, shown through other comprehensive income (OCI). For the complete fiscal year FY26, a net negative fair value movement of Rs 1,472 crore was reported.
Despite the quarterly declines, Info Edge’s annual financial performance benefitted from a unique exceptional gain linked to PB Fintech. During FY26, the company recognised an exceptional gain of Rs 5,200 crore resulting from the merger of Makesense Technologies, previously viewed as a joint venture of Info Edge, with PB Fintech.
Post-merger, the shares of PB Fintech awarded to the company were reclassified as financial investments and assessed at fair market value in accordance with Ind AS 109 accounting regulations. This revaluation triggered the exceptional gain reported during the fiscal period.
Both the gains and losses associated with Eternal and PB Fintech are classified as non-cash and were processed via OCI, indicating that they did not directly influence the company’s operating revenue or cash flow. Nevertheless, these factors had a substantial impact on Info Edge’s comprehensive income and net worth over FY26.
Thus far in FY27, shares of PB Fintech have shown slight increases, while shares of Eternal have either stagnated or decreased. This situation underscores the growing correlation between Info Edge’s financial outcomes and the fluctuations within the technology stock market, alongside its primary internet operations such as Naukri, 99acres, Jeevansathi, and Shiksha.
For investors, there seems to be a compelling argument for establishing Info Edge’s investment business as a distinct entity, particularly given the extensive portfolio the firm has amassed and the funds it currently manages. With its joint venture with Singapore’s Temasek involved in various investments, significant price volatility is already present with just two publicly listed entities in which it holds considerable stakes.
Investors seeking direct participation in Naukri’s classified advertising sector encounter the necessity of dealing with a venture portfolio characterised by unpredictable outcomes, illiquid assets, and a valuation approach dependent on mark-to-market assessments. Conversely, those interested in the venture portfolio ultimately pay for Naukri’s comparatively stable, slower-growing operational business. Each group fails to obtain precisely what it desires.
As matters approach a critical juncture, FY27 is anticipated to be the year in which Info Edge begins to pursue a formal separation. What is currently postponing such a transition is Info Edge’s inclination to hold out longer than typical investors prior to divesting. Motivated by conviction, along with a perceived absence of superior alternatives as management frequently emphasises, investments like Ixigo and Bluestone remain within the firm post-IPO, although their influence is lesser compared to that of Eternal and PB Fintech.
