CarTrade Tech shares fall 18.18% as shareholder profit holds steady despite revenue growth
Key Facts
CarTrade Tech reported results for the second quarter of fiscal 2027, ended September 30, 2026, showing growth in operating revenue and EBITDA, but a slight decline in net profit attributable to owners of the parent. The stock fell 18.18% during trading on October 28 to a low of 2,307.80 rupees on the Bombay Stock Exchange, according to a Business Today report. Consolidated operating revenue rose to 213.09 crore rupees from 193.41 crore a year earlier, an annual increase of 10.2%. Net profit attributable to shareholders, however, was 59.49 crore rupees, compared with 59.66 crore in the year-earlier period, a decline of 0.3%. The results therefore show a widening gap between growth in operating activity and steady profit attributable to the parent company's shareholders.
At the operating-profit level, EBITDA rose to 76 crore rupees from 63.59 crore in the second quarter of fiscal 2026, up 19.5%. Its margin widened to 35.7% from 32.9%, reflecting an improvement alongside higher revenue. The company said quarterly revenue was the highest ever and that profit before tax reached a record of about 85 crore rupees. The financial statements show profit before tax of 85.45 crore rupees, up from 79.92 crore, or 6.9% year on year. Net profit attributable to shareholders did not keep pace with that increase, distinguishing the quarter's result from its broader description as record-breaking.
Income and expense items included factors that coincided with the divergence between growth in profit before tax and bottom-line net profit. Other income fell 19.5% to 23.13 crore rupees from 28.73 crore a year earlier, while tax expense rose to 19.49 crore from 15.85 crore. Total profit for the period increased 2.9% to 65.95 crore rupees, compared with 64.08 crore in the corresponding period. Profit attributable to non-controlling interests also rose to 6.47 crore rupees from 4.41 crore. Net profit attributable to owners of the parent was 59.49 crore rupees, slightly below its year-earlier level despite increases in total profit for the period and profit before tax.
Operating profit growth also outpaced revenue growth across the expense items cited in the results coverage. Employee costs rose 7.9% to 83.67 crore rupees, while other expenses increased 2.2% to 53.41 crore. At the subsidiary level, CarTrade Tech said OLX India revenue rose 26% year on year and its EBITDA increased 36%. It also said its platforms attracted an average of 7.6 crore unique visitors a month during the quarter, with organic visits accounting for 96% of traffic. These figures reflect the expansion of digital activity, but remain separate from net profit attributable to the parent company's shareholders, which recorded a slight decline.
For the first half of fiscal 2027, operating revenue rose to 414.26 crore rupees from 366.45 crore in the corresponding period. EBITDA increased to 138.98 crore rupees from 107.10 crore. These figures provide a broader picture of continued business growth over the six months, alongside the expansion recorded in the second quarter. The company said its network includes 500 physical locations, and that each of its CarWale, BikeWale and OLX India platforms serves more than 15 crore unique visitors annually. It also reported that its remarketing business achieved an annualized run rate equivalent to 16 lakh auction listings.
During trading on October 28, the stock was at 2,503.40 rupees on the National Stock Exchange of India at 11:51 a.m. India time, down 11.26% from the previous session's close of 2,821.20 rupees. A separate trading report said it later fell to 2,307.80 rupees, down 18.18%, and was down 14% year to date through that date. Business Today described the share move as a reaction to the quarterly results, but the company did not confirm that this was the reason for the decline. The company's founder and chairman said technology and artificial intelligence enable the development of innovative products and the delivery of richer, smoother user experiences across platforms. The discussion call for the second-quarter and first-half results was scheduled for October 28, 2026, at 12:30 p.m. India time.