INDIAMART - Indiamart Inter.

📊 NSE: INDIAMART 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 7:58

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 12% YoY to INR 391 Cr in Q2 FY26. IndiaMART standalone revenue grew 9% YoY to INR 360 Cr, contributing ~92% of total revenue. Busy Infotech revenue grew 88% YoY to INR 29 Cr (normalized growth 46% excluding reclassification), while other subsidiaries contributed INR 2 Cr.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates as India's largest online B2B marketplace with 8.6 million Indian supplier storefronts.

Profitability Margins

Gross Margin for standalone operations stood at 77% in Q2 FY26. Consolidated Net Profit Margin was 21% (INR 83 Cr), a significant decline from 33% in the previous quarter, primarily due to a drop in other income from INR 92 Cr to INR 10 Cr.

EBITDA Margin

Consolidated EBITDA margin was 33% (INR 130 Cr), down from 38% in FY25. Standalone EBITDA margin was 32% (INR 115 Cr), representing a 4% YoY decline in absolute EBITDA value.

Capital Expenditure

Standalone fixed assets stood at INR 27 Cr as of Q2 FY26. Strategic investments increased to INR 1,352 Cr (standalone) and INR 685 Cr (consolidated), reflecting ongoing capital allocation toward the accounting and business enablement space.

Credit Rating & Borrowing

Not disclosed in available documents. The company maintains a strong cash position with INR 2,874 Cr in cash and treasury investments and zero reported long-term debt.

⚙️ Operational Drivers

Raw Materials

As a digital marketplace, the primary 'raw material' is human capital. Manpower costs represent the largest expense at INR 171 Cr (43.7% of consolidated revenue), growing 16% YoY.

Import Sources

Not applicable for a digital platform; talent is primarily sourced from the domestic Indian market.

Key Suppliers

Not applicable. The company provides a platform for 8.6 million supplier storefronts rather than procuring physical raw materials.

Capacity Expansion

Current capacity is measured by 222,000 paying suppliers (up 2% YoY) and 124 million live product listings (up 6% YoY). The company added 2,800 net paying suppliers in Q2 FY26.

Raw Material Costs

Manpower costs grew 16% YoY to INR 171 Cr. Customer service costs for standalone operations were INR 85 Cr (23.6% of standalone revenue), up 14% YoY.

Manufacturing Efficiency

Platform efficiency is reflected in the Annualized Revenue Per Paying Supplier, which grew 12% YoY to INR 65,000, indicating better monetization of the existing supplier base.

Logistics & Distribution

Not applicable; however, the company is exploring 'Logistics/Tracking' as a business enablement opportunity for its SME base.

📈 Strategic Growth

Expected Growth Rate

15-18%

Growth Strategy

Growth will be driven by a 15-18% increase in deferred revenue, expansion of the 'Busy' accounting software (which saw 57% normalized billing growth), and targeting medium-sized enterprises (INR 100-500 Cr turnover). The company is also investing INR 10 Cr in performance marketing to drive unique business enquiries, which reached 31 million (up 12% YoY).

Products & Services

B2B marketplace subscriptions (Silver/Gold/Platinum), Busy Business Accounting Software, Livekeeping (Tally on Mobile), and lead generation services for SMEs.

Brand Portfolio

IndiaMART, Busy Infotech, Livekeeping.

New Products/Services

Expansion of Busy Infotech features including E-Way bills, E-Invoicing, and mobile-first accounting. Accounting software is viewed as a strategic fit to access SKU-level data and provide transaction financing.

Market Expansion

Targeting the 15-20 million 'good' SMEs in India. Currently penetrating only ~5-10% of the potential market. Focus is on top 10,000 product categories for performance marketing.

Market Share & Ranking

India's largest online B2B marketplace with ~60% market share in the organized B2B classifieds space.

Strategic Alliances

Strategic investments in the accounting space totaling ~INR 715 Cr, including a 100% stake in Busy Infotech (INR 508 Cr) and Livekeeping Technologies (INR 42 Cr).

🌍 External Factors

Industry Trends

Shift toward digital procurement and integrated accounting. The industry is evolving from simple discovery to business enablement (logistics, payments, and SKU-level inventory management).

Competitive Landscape

Competes with horizontal search engines (Google), vertical B2B platforms, and traditional offline trade directories.

Competitive Moat

Strong network effect moat: 210 million active buyers and 8.6 million suppliers create a self-sustaining ecosystem. High switching costs in the accounting segment (Busy) further strengthen the moat.

Macro Economic Sensitivity

Sensitive to the nominal growth of the SME sector; management targets a 10% nominal growth rate for the SME base to sustain subscriber additions.

Consumer Behavior

Increasing preference for mobile-first accounting and real-time inventory tracking among SMEs.

Geopolitical Risks

Limited direct impact as operations are primarily within India; however, global supply chain shifts affect the B2B trading activity on the platform.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with GST regulations is a major driver for the accounting software business (Busy), as SMEs require automated E-way bill and E-invoice generation.

Environmental Compliance

ESG initiatives include impacting 14,000+ students through school infrastructure projects and maintaining a 29% female workforce in non-sales roles.

Taxation Policy Impact

Effective tax rate is approximately 25%. Standalone tax liabilities stood at INR 56 Cr in Q2 FY26.

⚠️ Risk Analysis

Key Uncertainties

Slowdown in buyer traffic growth (3% YoY) and the ability to maintain net paying supplier additions (2,800 in Q2) in a competitive digital ad market.

Geographic Concentration Risk

Primarily concentrated in India, though diversified across thousands of cities and product categories.

Third Party Dependencies

High dependency on search engine algorithms for organic traffic and channel partners for Busy Infotech software distribution.

Technology Obsolescence Risk

Risk of Tally-based solutions being disrupted by cloud-native accounting platforms; mitigated by investments in Livekeeping and Busy's cloud features.