IndiaMART InterMESH (INDIAMART) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue from operations reached INR 414 crore in Q1 FY27, up 11% year-over-year, with net profit at INR 172 crore and a 33% margin.

• Customer collections grew 8% YoY to INR 463 crore, while deferred revenue increased 16% YoY to INR 2,014 crore.

• Unique business inquiries were 26 million, with a paying supplier base of 218,000, reflecting a net decline of 1,850 suppliers due to elevated churn at the Silver tier.

• Platinum and Gold subscribers, representing 50% of the customer base and over 75% of revenue, maintained strong upsell and retention rates.

• Board approved the incorporation of IndiaMART Finance Limited, a wholly owned subsidiary, to provide financial services and support business users' working capital needs.

Financial highlights

• Consolidated EBITDA was INR 146 crore, with a margin of 35%, supported by lower customer acquisition costs and operating leverage.

• Other income stood at INR 107 crore, mainly from mark-to-market gains on the treasury portfolio.

• Consolidated net profit for the quarter was INR 172 crore; cash generated from operations was INR 163 crore.

• Cash and treasury balance as of June 30, 2026, was INR 3,553 crore.

• Busy Infotech posted 47% YoY revenue growth to INR 36 crore and net profit of INR 6 crore.

Outlook and guidance

• Investments in product and user experience, such as the launch of BUSY Magic, are expected to drive the next phase of growth.

• Management expects continued normalized growth in BUSY's billing and revenue, targeting 27%-30% CAGR in the next few years, with aspirations for 35%-40% CAGR over five years.

• Buyer monetization experiments are ongoing, with voluntary paid programs and audience monetization initiatives.

• The company will evaluate the impact of new Labour Codes as rules are notified by remaining states and will recognize any consequential effects in future periods.