IndiaMART Q2 Earnings: Profit Declines 39% as Revenue Climbs to ₹391 Crore

IndiaMART InterMESH Ltd reported its second quarter results for FY26 on Friday, October 17, with a 38.8% year-on-year decline in net profit to ₹83 crore, down from ₹135 crore in the same period last year. The decline in profit came despite a 12.5% rise in revenue to ₹391 crore, driven by higher customer collections and expansion in the supplier base.

Margins and EBITDA

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) slipped 3.4% to ₹130 crore from ₹134.6 crore a year earlier. EBITDA margin contracted to 33.2% from 38.7% due to higher investments in product development and technology enhancements. These strategic investments aim to improve the platform’s long-term scalability and user engagement.

Customer Collections and Operational Highlights

Customer collections grew 14% year-on-year to ₹406 crore, with IndiaMART standalone collections contributing ₹365 crore (up 8%) and Busy Infotech adding ₹38 crore. On the operational front, unique business enquiries increased 12% to 31 million, indicating steady demand from businesses seeking digital solutions. 

Supplier storefronts grew 6% to reach 8.6 million, while the number of paying suppliers rose to 2.22 lakh, with a net addition of 4,000 during the quarter.

Management Commentary

Commenting on the performance, CEO Dinesh Agarwal highlighted the company’s focus on enhancing user experience, improving engagement, and driving conversions. He noted, “With a sound business model and businesses embracing digital solutions, we remain committed to creating long-term value for all stakeholders.” 

Stock Performance and Financial Metrics

As of October 17, 2025, the Indiamart Intermesh share price closed at ₹2,342, down 0.67% on the NSE. The company’s market capitalisation reached ₹14,050 crore. Over the observed period, the stock traded between a high of ₹3,067 and a low of ₹1,850.

With a price-to-earnings (P/E) ratio of 23.8 and a book value of ₹364, IndiaMART maintains solid financial metrics. The company offers a dividend yield of 1.28%, while return on capital employed (ROCE) is 34.2% and return on equity (ROE) stands at 26.9%.

Read More:Q2 Performance Update: Tata Technologies Net Profit Up 5% with Services Growth of 5.1%

Conclusion

Despite the 39% decline in net profit, IndiaMART’s revenue growth and steady operational metrics indicate resilience in its B2B platform. Strategic investments in technology and supplier engagement are expected to support long-term growth while maintaining market leadership.

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