CarTrade Tech shares surged 5.02% to ₹2,827.85 on the BSE after international brokerage Nomura reiterated its 'Buy' rating and raised its target price to ₹3,286 from ₹2,740, implying an upside of 22% from current levels. According to Business Standard, the stock touched an intraday high of ₹2,846 on the BSE, tracking strong buying interest following the brokerage's positive commentary on the company's growth prospects. The stock opened at ₹2,701 per share today, compared to the previous close of ₹2,693 on Tuesday.
The brokerage highlighted that AI models will use the company's proprietary data, which is likely to keep costs lower. As reported by The Economic Times, it expects these offerings to be monetised through Elite programmes, which could become a significant revenue contributor over the medium term. The broader objective is to improve monetisation in the largely untapped consumer-to-business (C2B) and consumer-to-consumer (C2C) segments. According to Business Standard, the outlook remains supported by improving monetisation of the OLX platform, expansion of new revenue streams, and sustained margin expansion.
According to Nomura, CarTrade Tech rolled out used-car financing in partnership with IDFC First Bank in June 2026. The brokerage noted that financing penetration in the used-car segment remains relatively low at 20-30%, compared with around 80% in the new-car market, and expects the financing offering to be gradually expanded to other used-vehicle categories. Based on the Elite programmes and verification plans launched so far, Nomura estimates that OLX has the potential to more than double its FY26 revenue with a modest 5% adoption rate. As per Business Standard, OLX continues to benefit from strong user engagement and a dominant position in used-car listings, providing scope for further revenue growth as premium and value-added services gain traction.
Factoring in the stronger outlook, Nomura raised its FY27 and FY28 revenue growth estimates for OLX to 25% and 30% respectively, from 22% and 25% earlier. According to The Economic Times, it also increased margin estimates to 39.4% for FY27 and 44.1% for FY28 from 39% and 41%, respectively. The brokerage introduced FY29 forecasts, projecting 30% revenue growth and a 48% margin for OLX. As a result of these revisions, Nomura increased its consolidated EBITDA and earnings per share estimates by 1-5%. Business Standard reports that the brokerage also noted emerging growth drivers such as artificial intelligence-led monetisation, used-car financing, and expansion into services like escrow and logistics.
According to Business Standard, CarTrade Tech operates a digital marketplace ecosystem comprising platforms such as CarWale, BikeWale, CarTrade, OLX India, Shriram Automall and CarTrade Exchange. On a consolidated basis, its profit after tax jumped 53.6% YoY and 15.2% QoQ to ₹70.85 crore in Q4 FY26. Revenue from operations stood at ₹203.14 crore in Q4 FY26, up 19.8% YoY but down 3.1% QoQ. The company's strong performance reflects continued investor interest in India's online auto classifieds and digital vehicle marketplace space, with the stock remaining volatile but strong over the past year.
