IndiaMART Raises Profit 9.8% to 90.8 Crore Rupees in Second Quarter
Key Facts
IndiaMART InterMESH raised its net profit 9.8% year on year to 90.8 crore rupees in the second quarter of fiscal 2027, compared with 82.7 crore rupees in the same period a year earlier, according to CNBC-TV18. The company reported results for the quarter ended in September and held its results call on October 27, 2026. Consolidated operating revenue rose 9.6% to 428.64 crore rupees, from 391.04 crore rupees a year earlier, according to PTI coverage via Rediff. The results show a divergence between revenue and profit growth on one hand and declines in some activity indicators and the supplier base on the other. The stock closed up 4.09% at 1,625.95 rupees on the BSE on October 27, according to PTI.
Total income was 421 crore rupees, up 4.95% from the year-earlier period, while total expenses rose 2.64% to 276.27 crore rupees, according to PTI. On operating profitability, CNBC-TV18 said the EBITDA margin widened 400 basis points to 37.2%, from 33.2% a year earlier. The company put consolidated EBITDA at 159 crore rupees, with a margin of 37%, on its results call. Consolidated other revenue was also negative 8 crore rupees during the quarter. The chief financial officer attributed the figure to revaluation losses linked to higher bond yields and described the loss as a book entry.
On activity, unique business inquiries totaled 27 million in the quarter, while paying suppliers ended at 217,000, after a net decline of 615 suppliers during the period, according to management on the results call. Management attributed the decline in the supplier base mainly to a higher churn rate in Silver-category subscriptions. The chief executive said on the call that business inquiries were about 10% to 15% below their previous peaks. He linked part of the decline to the blocking of some proprietary information from search engines and AI models. He said the company had begun putting more content behind a login, adding: "You cannot keep collecting my site's data forever without logging in."
By contrast, management said Gold- and Platinum-category customers account for about 50% of the customer base and contribute about 75% of revenue, and that upselling and retention rates for these customers are good. This share reflects the importance of higher-value customers to revenue, alongside subscription-cancellation pressure in the Silver category. Consolidated collections from customers rose 9% to 443 crore rupees, according to the call data. Consolidated deferred revenue also increased 16% to 2,029 crore rupees. These indicators put growth in collections and deferred revenue alongside the net decline in supplier numbers, offering a different picture from inquiry metrics alone.
On business trends, the chief executive said the company was focused on attracting inquiries in the top quartile of categories that account for the greatest amount of business on the platform. He cited a range of 100,000 categories in describing this focus and said the company expected to balance value and volume growth over the long term. Management did not give a separate timeline for inquiries to return to previous levels. Regarding negative other revenue, the chief financial officer said the revaluation loss was "a book entry, and we believe it will reverse over the next few quarters." The results call was held on October 27, and the company said an audio and video recording was available.