CarTrade Tech delivered a stronger-than-expected operating performance in Q1 FY27, with consolidated revenue standing at ₹201.16 crore, up 16.25% YoY, though slightly below estimates. According to Nomura, adjusted EBITDA margin came in at 34.3%, ahead of Nomura's estimate of 31.6% and consensus estimate of 31%, resulting in EBITDA of ₹689 million, up 46% year-on-year. Adjusted profit after tax rose 32% year-on-year to ₹691 million, while net cash increased to ₹13.2 billion from ₹12.4 billion at the end of the March quarter. The brokerage noted that the key positive surprise came from the OLX segment, with revenue growth of 29% YoY significantly outperforming Nomura's expectation of 18% growth.
The company achieved its highest-ever quarterly total income of ₹230 crore, up 16% YoY, as reported by The Economic Times. EBITDA surged 45% YoY to ₹63 crore, with EBITDA margins improving to 31% in the April-June quarter of FY27. The strong EBITDA performance reflects the company's focus on profitable growth and operational efficiency across its diversified business portfolio. Adjusted EBITDA rose 34% to ₹97.5 crore with adjusted margins expanding to 42%. PBDT surged 34% to ₹88.37 crore and PBT increased 36% to ₹77.60 crore during the quarter. The company reported an adjusted EBITDA of ₹98 crore for the quarter.
All business verticals of CarTrade Tech delivered strong year-on-year growth during the quarter. As reported by ETAuto, the consumer group revenue grew 17.67% YoY to ₹78.11 crore in Q1 FY27, with EBITDA increasing 33% to ₹25.9 crore and segment profit after tax rising 12% to ₹25.7 crore. The remarketing business also showed solid performance with revenue growth of 13.18% to ₹67.23 crore and EBITDA growth of 38% to ₹19 crore. However, the standout performer was OLX India, which emerged as the fastest-growing business with 29.16% revenue growth to ₹62.18 crore and EBITDA surging 76% to ₹18.1 crore. According to Nomura, OLX's revenue growth of 29% YoY was significantly ahead of the brokerage's expectation of 18%, with EBITDA margin at 33.6%, though this was partly offset by slower growth in the standalone Consumer business where revenue increased 18% YoY compared with Nomura's expectation of 23% growth.
CarTrade Tech maintained strong digital engagement during the quarter, attracting around 80 million monthly active users across its platforms, including 47 million users on CarWale, BikeWale and CarTrade, and 32 million on OLX India. According to Indian Television Dot Com, more than 95% of its web traffic is organic, while cumulative app downloads have crossed 100 million. The company now operates across more than 500 physical locations including Shriram Automall, CarWale abSure and Signature dealerships, as well as OLX India franchise outlets, strengthening its nationwide reach. Each of its flagship digital platforms including CarWale, BikeWale, and OLX India each cater to more than 150 million annual unique visitors. The company also rolled out smart match-making, price and condition agent VAYA AI on its platform during the quarter. Additionally, CarTrade announced a strategic partnership with used-car startup Spinny to integrate the latter's services across its consumer marketplaces, CarWale and OLX India. On OLX, management announced a partnership with Spinny that will enable the company to participate in transaction margins, as noted by Nomura, which should improve both user and seller experience meaningfully.
Despite strong quarterly results, CarTrade Tech shares declined 4.68% to ₹2,815.95 following the Q1 FY27 announcement, as reported by Business Standard. However, Nomura reiterated its Buy rating and raised its sum-of-the-parts-based target price to ₹3,340, citing the company's strong performance and potential for further growth. The brokerage noted that the stock trades at around 30x FY28 EV/EBITDA, adjusted for its 51% stake in SAMIL, and expects around 30% EBITDA CAGR over FY26-29F. Nomura highlighted that the seller side of the Elite programme now contributes around 25% of seller revenue, while buyer adoption continues to improve with more than 100,000 sign-ups last month. The brokerage believes given the strong reach of OLX (around 32 million MAUs, 3 million-plus sellers and 5-6 million buyers) and limited monetisation to date, there is potential for revenue to, at least, double from FY26 levels assuming a modest 5% adoption. Management indicated that more AI initiatives are being rolled out to drive Elite programme adoption, alongside new offerings such as financing, escrow and logistics services.
