Earnings Outlook
IndiaMART Q2 consolidated PAT seen sharply up on ARPU growth
This story was originally published at 20:22 IST on 26 October 2026
Register to read our real-time news.Informist, Monday, Oct. 26, 2026
By Aman Gupta
MUMBAI - Online marketplace provider IndiaMART InterMESH Ltd. is expected to report a sharp on-year jump in its consolidated net profit for the September quarter due to a rise in its average revenue per user. The company's net profit is expected to improve on year despite a decline in its subscriber number and continued churn in its entry-level Silver subscription category, according to brokerages tracking the company.
IndiaMART is expected to report a net profit of INR 1.29 billion for the September quarter, up 56% on year, according to the average of estimates from 12 brokerages. Sequentially, the net profit is expected to decline 25%. The highest estimate for the company's September quarter net profit is INR 1.60 billion from Axis Securities Ltd. and the lowest is INR 1.02 billion from Anand Rathi Share and Stock Brokers Ltd.
The company's September quarter net sales are expected to rise nearly 7% on year to INR 4.18 billion, according to the average of estimates. The highest estimate for net sales is INR 4.34 billion from JM Financial Services Ltd. and the lowest is INR 3.84 billion from Kotak Securities Ltd.
Brokerages expect IndiaMART's other income to fall sharply on quarter due to mark-to-market losses incurred due to rising bond yields. The company's consolidated total income for the June quarter was INR 5.21 billion, of which other income was INR 1.07 billion.
Brokerages attribute IndiaMART's revenue growth to the rise in the company's average revenue per user. The company's ARPU is expected to rise 10% on year to INR 71,500, JM Financial said. The brokerage also estimates IndiaMART's consolidated cash collection to rise 7.8% on year to INR 4.4 billion.
Brokerages are divided on the growth of the company's subscriber base in the September quarter. Many brokerages expect IndiaMART's subscriber base to decline on year or remain flat due to a churn in its Silver subscription segment. However, Kotak expects the company's subscriber base to start recovering in the reporting quarter with an addition of 1,000 new subscribers sequentially. On its part, ICICI Securities Ltd. expects 758 new subscriber additions in the quarter.
IndiaMART is expected to report earnings before interest, tax, depreciation, and amortisation of INR 1.46 billion for the reporting quarter, up from
INR 1.3 billion for the year-ago quarter, according to the average of eight estimates. The highest estimate for EBITDA is INR 1.57 billion from JM
Financial and the lowest is INR 1.35 billion from Equirus Securities Pvt. Ltd. Lower marketing spending is expected to boost the company's EBITDA margin by 560 bps in the reporting quarter to 37.5% from a year ago, Kotak said.
IndiaMART is a business-to-business online marketplace company, which connects manufacturers with buyers. It handles a wide range of products from construction and building materials to houseware goods and cosmetics. The company will release its September quarter earnings Tuesday. Analysts will track the company's average revenue per user growth, the performance of its subsidiary Busy Infotech, trends in the Silver category churn rate, new subscriber additions, and the trajectory of monetisation of buyers who currently avail of its services free, brokerages said.
Monday, shares of IndiaMART InterMESH ended at INR 1,562 apiece on the National Stock Exchange, slightly down. The stock has fallen over 18% since the company announced its June quarter earnings on Jul. 21. Of the eight research reports on the company available with Informist, six have a 'buy' recommendation on the stock, with an average target price of INR 2,358. This implies an upside of 51% over the current market price. One brokerage has a 'sell' recommendation, and another has a ‘hold' recommendation.
Following are the Jul-Sept. earnings estimates for IndiaMART InterMESH from 12 brokerages, in the descending order of estimates for net profit, in INR billion:
|
Brokerage |
Net sales |
Net profit |
EBITDA |
|
Axis Securities Ltd. |
4.30 |
1.60 |
N.A. |
|
Kotak Securities Ltd. |
3.84 |
1.54 |
1.44 |
|
ICICI Securities Ltd. |
4.31 |
1.50 |
1.46 |
|
360 ONE Capital Market Pvt. Ltd. |
3.93 |
1.33 |
N.A. |
|
Nuvama Wealth Management Ltd. |
4.24 |
1.31 |
1.44 |
|
Choice Equity Broking Pvt. Ltd. |
4.20 |
1.29 |
1.52 |
|
Dolat Capital Market Pvt. Ltd. |
4.27 |
1.29 |
N.A. |
|
Motilal Oswal Financial Services Ltd. |
4.20 |
1.20 |
1.44 |
|
JM Financial Institutional Securities Pvt. Ltd. |
4.34 |
1.16 |
1.57 |
|
HDFC Securities Ltd. |
4.16 |
1.14 |
1.47 |
|
Equirus Securities Pvt. Ltd. |
4.10 |
1.12 |
1.35 |
|
Anand Rathi Share and Stock Brokers Ltd. |
4.30 |
1.02 |
N.A. |
|
Average |
4.18 |
1.29 |
1.46 |
End
Edited by Biswadip Mitra
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