Shares of IndiaMART, a leading B2B ecommerce platform, dropped as much as 7.5% intraday to a 52-week low of ₹1,773 before closing 5.25% down at ₹1,817.40 on the NSE following its Q1 FY27 earnings release. The company’s market capitalization stood at ₹10,930.4 crore ($1.1 billion) at session close, reacting to a continued decline in its paid supplier base despite revenue and profit growth, according to inc42.com.
IndiaMART reported a 12% year-on-year increase in consolidated net profit to ₹172.2 crore for the quarter ended June, up from ₹153.5 crore a year earlier. Sequentially, profit surged more than 3.4 times from ₹50.2 crore. Operating revenue rose 11% YoY and 3% sequentially to ₹414.4 crore, with total income including other income of ₹106.7 crore reaching ₹521.1 crore. EBITDA increased 10% both YoY and sequentially to ₹14.6 crore. However, the paid supplier base declined for the third consecutive quarter, raising concerns among investors and analysts, per inc42.com.
The decline in paid suppliers is significant as it impacts IndiaMART’s core revenue streams and growth prospects. Jefferies retained an ‘Underperform’ rating with a target price of ₹1,650, citing the supplier decline and lowering FY28 and FY29 earnings estimates by 1.5% to 4%. Nomura maintained a ‘Reduce’ rating with a ₹1,810 target, emphasizing that recovery in paid supplier additions is critical for any meaningful stock upside. IndiaMART’s core web and related services business grew 9% YoY to ₹375.9 crore, while its accounting software revenue surged 49%, showing some diversification in revenue sources, according to inc42.com.
IndiaMART’s next key milestone will be its performance in the upcoming quarters, where paid supplier trends will be closely watched by investors and analysts. The company’s ability to reverse the decline in paid suppliers will be crucial for stock performance and earnings growth, with Jefferies and Nomura’s target prices reflecting cautious sentiment as of the Q1 FY27 results release, per inc42.com.