Brokerage firm Nuvama has maintained a 'BUY' rating of ₹2,098 on IndiaMart InterMesh Ltd despite the company's challenging Q4 performance. According to reports from ET Now, the rating is based on expectations of moderate supplier addition growth going forward. The online B2B marketplace connects 86 lakh suppliers with 21.9 crore buyers across various industries.
IndiaMart InterMesh reported a 72.2% decline in consolidated net profit to ₹50.2 crore for the March quarter, compared to ₹180.6 crore in the same period last year. As reported by Inc42, sequentially, net profit has declined 73.3% from ₹188.3 crore. Revenue from operations increased 13.9% YoY to ₹404.3 crore, while EBITDA grew only slightly by 1.7% to ₹132.6 crore. The company's EBITDA margins compressed to 32.8% from 36.7% in the prior year, indicating higher costs or price pressures that offset revenue gains. Total expenses climbed 19% to ₹279.3 crore from ₹234.7 crore in March quarter of FY25.
The company's revenue from 'Web and related services' was ₹368.3 crore, while accounting software services contributed ₹36.1 crore, representing an 83% YoY growth. According to Inc42, CEO Dinesh Agarwal emphasized the company's focus on driving sustained growth through platform quality enhancement and AI adoption. The company is implementing AI across standardized cataloguing, precise matchmaking results, and conversational AI tools to improve marketplace experience. However, the 3.9 percentage point drop in EBITDA margin suggests that AI-driven cost savings haven't yet fully offset rising operational expenses.
For the entire FY26, IndiaMart InterMesh reported a 13% decline in net profit to ₹474.7 crore from ₹550.7 crore in FY25, while total consolidated income rose 13% YoY to ₹1,569 crore. As reported by Inc42, the company's Q3 results showed a 56% jump in consolidated net profit to ₹188 crore versus ₹121 crore in the year-ago period, with revenue growing 13% to ₹402 crore. The board recommended a dividend of ₹60 per share - ₹30 as final dividend and ₹30 as special dividend for the fiscal year, subject to shareholder approval. The company generated ₹694 crore from operations in FY26, demonstrating strong cash flow generation.
Shares of IndiaMart InterMesh ended today's trading session 1.56% lower at ₹2,097.60 on the NSE, closing lower on April 30, 2026. According to Inc42, the company had 2.22 lakh paying suppliers by the end of FY26, which opted for subscription plans. During Q4, the company saw a decline of 1,200 seller subscribers, primarily due to a price hike in its silver subscription plans. Management noted that gold and platinum customers, contributing over 75% of revenue, continue to show strong growth and retention, while live product listings grew 9% YoY to 129. The company's price-to-earnings ratio of around 20x suggests investors expect steady growth, though some analysts suggest a 'Hold' rating, with competitors like Just Dial trading at a much lower P/E of around 9x.
