IndiaMART InterMESH (INDIAMART) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue from operations reached INR 391 crore in Q2 FY26, up 12% year-over-year, with net profit at INR 83 crore and a 21% net margin.

• Customer collections grew 14% year-over-year to INR 406 crore, with deferred revenue up 18% to INR 1,750 crore.

• Unique business inquiries rose 12% year-over-year to 31 million; paying suppliers totaled 2,022,000 with net additions of 2,800 (normalized).

• Busy Infotech posted 57% year-over-year growth in billings and 46% growth in revenue, with net profit at INR 5 crore.

• AI initiatives and platform improvements are ongoing to enhance user experience and retention.

Financial highlights

• Consolidated EBITDA was INR 130 crore, with a margin of 33%, and standalone EBITDA was INR 115 crore (32% margin).

• Net profit for the quarter stood at INR 83 crore; consolidated net profit margin at 21%, standalone at 23%.

• Cash generated from operations was INR 114 crore; cash and treasury balance at INR 2,874 crore as of September 30, 2025.

• Deferred revenue rose 17% year-over-year to INR 1,750 crore consolidated and 15% to INR 1,633 crore standalone.

• Other income declined sharply from INR 92 crore to INR 10 crore due to mark-to-market losses on the treasury portfolio from rising bond yields.

Outlook and guidance

• Management remains focused on improving platform quality, customer servicing, and leveraging AI for long-term value.

• Strategic focus on expanding the buyer and supplier network, commerce enablement, fintech, and SaaS business enablement.

• No specific guidance provided for future paid customer additions; churn remains elevated for silver customers.

• ARPU growth of 6-8% annually is expected to be sustainable based on historical trends.