CARTRADE - Cartrade Tech

📊 NSE: CARTRADE 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 20:43

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, the Consumer Group grew 37% YoY to INR 76.25 Cr, Remarketing grew 23% YoY to INR 62.62 Cr, and OLX India grew 17% YoY to INR 52.52 Cr. For FY25, segment contributions were Consumer (37%), Remarketing (33%), and OLX India (30%).

Geographic Revenue Split

The company operates primarily in India, with 100% of revenue derived from domestic operations across its platforms like CarWale, BikeWale, and OLX India.

Profitability Margins

Net profit margin improved from 16.76% in FY24 to 22.61% in FY25. Q2 FY26 consolidated PAT surged 109% YoY to INR 64.08 Cr, driven by strong operating leverage where revenue growth outpaces cost increases.

EBITDA Margin

Consolidated EBITDA margin for Q2 FY26 reached 43%, up from 33% in Q2 FY25. FY25 consolidated EBITDA margin was 23%, a significant improvement from 16% in FY24.

Capital Expenditure

Not disclosed in available documents; however, the company maintains a debt-free balance sheet with INR 954 Cr in liquidity to support future growth and potential M&A.

Credit Rating & Borrowing

The company is debt-free as of March 31, 2025, and maintains a strong liquidity position of INR 954 Cr, eliminating borrowing costs.

⚙️ Operational Drivers

Raw Materials

As a technology platform, the primary 'raw material' is human capital; Employee costs represent 44% of total revenue at INR 284.36 Cr in FY25.

Import Sources

Not applicable for a digital automotive platform.

Key Suppliers

Not applicable; the company relies on its internal technology infrastructure and organic user base.

Capacity Expansion

Current capacity includes 85 million Monthly Active Users (MAUs) and 500+ physical locations. Expansion is focused on the abSure brand and increasing physical footprint.

Raw Material Costs

Employee costs increased 16% YoY to INR 284.36 Cr in FY25, while marketing expenses grew 12% to INR 31.91 Cr, both growing slower than the 31% revenue growth.

Manufacturing Efficiency

Operational efficiency is measured by the 95% organic traffic rate, which allows for high margins by minimizing customer acquisition costs.

Logistics & Distribution

Not applicable; distribution is digital via web and mobile platforms.

📈 Strategic Growth

Expected Growth Rate

20-22%

Growth Strategy

Growth will be achieved through product innovation (conversational commerce, voice search), improving user experience to increase conversion ratios, and expanding the physical footprint of the abSure brand to 500+ locations.

Products & Services

Used car and bike classifieds, vehicle auction services, automotive inspection reports, and advertising solutions for OEMs and dealers.

Brand Portfolio

CarWale, BikeWale, OLX India, Shriram Automall, abSure, Adroit Inspection Services.

New Products/Services

Expansion of abSure physical outlets and integration of AI-driven conversational commerce to enhance the used vehicle buying experience.

Market Expansion

Focus on deepening penetration in the Indian used vehicle market, which is a large and expanding Total Addressable Market (TAM).

Market Share & Ranking

Ranked #1 automotive platform, #1 used classified platform, and #1 vehicle auction platform in India.

Strategic Alliances

The company operates through subsidiaries like Sobek Auto India (OLX) and Shriram Automall India.

🌍 External Factors

Industry Trends

The industry is shifting toward mobile-first transactions, conversational commerce, and AI-integrated search, with CarTrade positioning itself as a technology leader.

Competitive Landscape

Intense competition from both domestic and foreign players in the digital automotive ecosystem, requiring constant brand equity maintenance.

Competitive Moat

The moat is built on a 95% organic traffic rate and a massive user base of 150 million annual actives, creating a network effect that is highly sustainable and difficult for competitors to replicate without high spend.

Macro Economic Sensitivity

Sensitive to the overall health of the Indian automotive market and digital adoption rates among consumers.

Consumer Behavior

Increasing preference for mobile usage and voice-assisted search for vehicle transactions.

Geopolitical Risks

Minimal direct impact as operations are concentrated within India, though global tech trends influence platform evolution.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution norms for physical auction sites and general digital content liability regulations.

Environmental Compliance

Not disclosed; the company is a digital platform with a low environmental footprint.

Taxation Policy Impact

Effective tax expense was INR 9.83 Cr in FY25, with a significant deferred tax adjustment of INR 13.27 Cr.

Legal Contingencies

The company identifies content liability fraud as a primary concern that could lead to reputational risk, though specific pending case values are not disclosed.