REA Group H1 FY26: Australia Carries the Load as India Is Rebuilt

REA Group has delivered a solid first-half result for FY26, with continued yield expansion in Australia offsetting a sharp contraction in reported international revenues following a deliberate reset of its India business. The group’s underlying performance remained steady, even as headline comparisons were distorted by last year’s PropertyGuru divestment and the exit from non-core Indian operations.

• Group revenue of A$916 million, up 5% year-on-year
• EBITDA (excluding associates) of A$569 million, up 6%
• Net profit of A$341 million, up 9%
• Earnings per share of A$2.58, up 9%
• Interim dividend of A$1.24 per share, up 13%
• On-market share buy-back announced of up to A$200 million

The reported net profit number was down 24% at A$336 million due to the absence of a one-off gain booked in the prior period following the sale of REA Group’s stake in Southeast Asian portal operator PropertyGuru. That transaction was completed in H1 FY25 and continues to skew year-on-year comparisons across both revenue and profit lines.

Australia again did most of the heavy lifting. Domestic revenue rose 8% to A$872 million despite national Buy listings falling 6%. Residential revenue increased 7% to A$658 million, driven by a 14% increase in Buy yield as agents continued to absorb higher pricing for premium products, deeper depth penetration and add-on services. A 7% average price rise for Premiere+ was a key contributor.

Audience and engagement metrics strengthened further. Realestate.com.au claimed an average of 12.7 million monthly users during the half, peaking at 13.2 million in November, while buyer enquiries rose 20% year-on-year and seller leads increased 38%. REA continues to convert that engagement into pricing power, even as listing volumes remain uneven across cities.

Chief executive Cameron McIntyre said:

“REA Group’s first half performance was underpinned by strong double-digit yield growth in our core residential business. Our focus on richer, more immersive consumer experiences supported record audience and strong engagement.”

The international picture was dominated by a structural reset in India. REA Group operates Housing.com as its core Indian portal and previously also owned PropTiger and Makaan, alongside the Housing Edge adjacencies platform. During the half, the group completed the sale of PropTiger and exited Housing Edge entirely, leaving Housing.com as the sole strategic focus for the market.

As a result, REA India’s reported revenue fell 40% year-on-year to A$38 million. Housing.com itself generated A$26 million in revenue, broadly flat year-on-year, or up 3% on a constant currency basis. Growth in customer numbers and improved monetisation in Tier 2 cities was offset by sustained competition on pricing and packaging, which management said continues to pressure yields in the Indian market.

Costs in India moved sharply lower following the simplification. Operating expenses declined 27%, reflecting the removal of Housing Edge and PropTiger-related costs, although EBITDA losses still widened slightly to A$18.5 million for the half. REA reiterated guidance for full-year India EBITDA losses of A$40–45 million as it prioritises stabilisation over growth.

McIntyre framed the changes as necessary groundwork rather than retrenchment.

“With a simplified business structure, REA India’s new management team has clear strategic focus on the Housing.com portal,”

Looking ahead, REA expects national Buy listing volumes in Australia to decline by 1–3% for FY26 but is guiding for continued Buy yield growth of 12–14%. With Australia continuing to fund the group and India now in rebuild mode, the next test will be whether Housing.com can return to growth without the drag of loss-making adjacencies.