Just Dial Shares Hit 10% Upper Circuit: What’s Next?

Just Dial shares jumped 10% to hit the upper circuit on August 28 after Kotak Institutional Equities retained its Buy rating and backed the company’s growth strategy under new CEO Dinkar Ayilavarapu.

The stock touched ₹704.55, while Kotak reportedly set a target price of ₹1,175. That target implies more than 83% upside from the previous closing price, although a brokerage target is not a guarantee of future returns.

Why did Just Dial shares hit the 10% upper circuit?

The immediate trigger for the Just Dial share price rally was positive brokerage commentary from Kotak Institutional Equities.

Kotak expects the company’s new leadership to put greater emphasis on merchant acquisition, return on investment, new product launches and growth in its business-to-business operations.

Just Dial shares quickly climbed to the 10% upper circuit of ₹704.55 following the brokerage commentary. At that price, the company’s market capitalisation was around ₹5,992 crore.

Just Dial share price: Key numbers

Metric	Details
August 28 share price	₹704.55
Intraday move	+10%
Kotak rating	Buy
Kotak target price	₹1,175
Implied upside from previous close	More than 83%
New CEO	Dinkar Ayilavarapu
CEO tenure began	August 1, 2026

Why is Kotak bullish on Just Dial?

Kotak’s bullish view is closely linked to expectations around Just Dial’s new management.

Dinkar Ayilavarapu took over as CEO on August 1, replacing founder VSS Mani, whose tenure as managing director and CEO ended on July 31.

The leadership change is significant because Ayilavarapu brings experience across e-commerce, B2B operations and business strategy.

Before joining Just Dial, he headed Flipkart Wholesale. He had also served as Flipkart’s group head of strategy and spent nearly 15 years at Bain & Company, working in areas including technology and telecom strategy.

1. Greater focus on merchant acquisition

One of the biggest opportunities is increasing the number of businesses paying to use Just Dial’s services.

Kotak expects the new management to sharpen its focus on merchant acquisition while improving the return businesses receive from the platform.

Better products and stronger merchant economics could potentially help Just Dial convert more businesses into paying customers.

2. Faster growth in B2B collections

B2B is another important part of the investment case.

Kotak expects Just Dial to focus on business verticals where competition is limited or absent. The idea is to find segments where the company can use its existing merchant network and brand recognition without facing intense competition.

This matters because collections growth was subdued in FY26, at just 1.6% year-on-year, according to the brokerage commentary reported by Moneycontrol.

3. More product launches

Kotak also expects enhanced product launches to support merchant growth.

For Just Dial, simply adding merchants may not be enough. The company needs products that businesses are willing to pay for and continue using.

If new management can improve merchant ROI while expanding the product portfolio, collections and revenue growth could benefit over time.

How is Just Dial’s underlying business performing?

Just Dial’s latest quarterly numbers provide some support for the growth argument.

Revenue from operations increased 9.9% year-on-year to ₹327.5 crore in the June quarter of FY27. Net profit rose 4.1% year-on-year to roughly ₹166 crore.

Operating EBITDA came in at ₹87.4 crore, up 1.1% from the previous year.

However, the EBITDA margin contracted to 26.7%, showing that faster growth may come with additional costs.

Paid campaigns are also growing

Active paid campaigns reached 639,200 during the June quarter, representing 3.5% year-on-year growth.

Revenue growth was also helped by a 6.2% improvement in realisations, according to Kotak Neo’s post-results analysis.

That combination matters because Just Dial’s longer-term performance depends not only on attracting businesses, but also on increasing the value generated from each paying merchant.

Does Just Dial have a strong balance sheet?

One of Just Dial’s notable strengths is its cash position.

As of June 30, 2026, the company held cash and investments of about ₹6,022 crore.

A large cash balance can provide flexibility to invest in technology, product development, sales teams and new growth initiatives.

It may also offer some valuation support, although investors still need to assess how effectively that capital is deployed.

Why did Kotak raise its Just Dial target?

Kotak Institutional Equities’ latest reported target of ₹1,175 is considerably above the ₹1,100 fair value mentioned by Kotak Neo following Just Dial’s June-quarter results in July.

The newer bullish thesis appears to put greater weight on what the new management could achieve through:

• Faster merchant acquisition
• Better merchant return on investment
• More product launches
• Higher B2B collections growth
• Expansion into less competitive verticals

The key word, however, is execution.

Investors will need evidence that these plans translate into sustained growth rather than a short-term improvement in market sentiment.

What are the risks for Just Dial shares?

The 10% rally and bullish brokerage target do not eliminate the risks surrounding the stock.

Collections growth needs to improve

FY26 collections growth of 1.6% was weak. If the new strategy does not produce a sustained acceleration, expectations built into the stock could cool quickly.

Margins are under pressure

Just Dial’s Q1 FY27 operating EBITDA margin fell to 26.7%.

Investments in sales, technology and new products could support longer-term growth, but they may also limit near-term margin expansion. Kotak Neo had already trimmed its earnings estimates slightly after accounting for lower margin assumptions.

The new CEO strategy still needs to be proven

The market is currently reacting to expectations surrounding the leadership change.

Ayilavarapu only took charge as CEO on August 1. Investors therefore have limited operating data to judge how successfully the new strategy will be implemented.

Brokerage targets can change

A target price represents an analyst’s estimate based on assumptions about future earnings, growth and valuation.

Changes in business performance, competition, market conditions or those assumptions can lead brokerages to revise their targets.

What should investors watch next?

For investors tracking Just Dial shares, the next few quarters could be more important than the 10% single-day rally.

Key indicators to monitor include:

1. Growth in active paid campaigns
2. Merchant acquisition rates
3. Collections growth, particularly in B2B
4. Revenue growth
5. EBITDA margins
6. New product launches
7. Deployment of the company’s cash balance
8. Management commentary on long-term growth targets

A sustained improvement across these indicators would provide stronger evidence for the bullish thesis.

Is Just Dial stock a buy after the 10% rally?

Kotak Institutional Equities remains bullish on Just Dial, with its reported ₹1,175 target suggesting substantial potential upside. The brokerage is betting that the new CEO can revive growth by focusing on merchants, B2B collections and product expansion.

Still, the investment case now depends heavily on execution.

Just Dial has a large cash balance, improving revenue growth and a new management team with relevant digital and B2B experience. On the other hand, collections growth has previously been weak and margins have softened.

Investors considering the stock should therefore look beyond the upper circuit and track whether the operational numbers begin to validate the market’s expectations.

This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a SEBI-registered investment adviser before making investment decisions.

FAQs

Key takeaways

• Just Dial shares hit the 10% upper circuit at ₹704.55 on August 28.
• Kotak Institutional Equities retained its Buy rating with a reported target of ₹1,175.
• The brokerage is optimistic about new CEO Dinkar Ayilavarapu’s strategy.
• Merchant acquisition, B2B collections and new products are key areas to watch.
• Q1 FY27 revenue grew 9.9% year-on-year to ₹327.5 crore.
• Just Dial had more than ₹6,000 crore in cash and investments at the end of June 2026.
• Margin pressure and execution of the new strategy remain important risks.