IndiaMART InterMESH (INDIAMART) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was INR 4,286 million, up 10% YoY; EBITDA rose 23% to INR 159 crore and net profit increased 10% to INR 908 million.

• Unique business enquiries fell 14% YoY to 27 million; paying suppliers declined 2% YoY to 217,000, while annualized revenue per paying supplier rose 10% to INR 72,000.

• Consolidated and standalone results received unmodified audit opinions.

Financial highlights

• Consolidated collections were INR 443 crore, up 9% YoY; deferred revenue reached INR 2,029 crore, up 16%.

• Consolidated cash flow from operations was INR 135 crore, up 19% YoY; standalone cash flow was INR 124 crore, up 14%.

• Standalone revenue was INR 3,890 million, up 8% YoY; net profit was INR 1,063 million, up 27%.

• Consolidated Q2 other income was negative INR 76 million, mainly from notional mark-to-market losses on bonds as yields rose; management expected reversal in coming quarters.

Outlook and guidance

• Long-term growth is expected to balance value and volume, historically near 10% each; recent growth has been weighted toward value.

• Long-term EBITDA margin guidance remains 33%; elevated quarterly margins reflect limited sales investment and timing between upfront costs and revenue recognition.

• Gross supplier additions will remain measured until Silver churn improves; management gave no timing and expects stronger sales investment once churn is better understood.

• Busy management expects more comparable growth from Q3, with prior-year billing-methodology changes and win-back activity creating a high Q1-Q2 base.

• Strategic priorities include expanding buyer and supplier networks, focusing on large and medium enterprises, and developing commerce enablement, fintech and business-enablement SaaS.