IndiaMART InterMESH (INDIAMART) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue from operations reached INR 391 crore in Q2 FY26, up 12% year-over-year, with customer collections at INR 406 crore, up 14% year-over-year.

• Net profit for the quarter stood at INR 83 crore, with a net margin of 21%.

• Busy Infotech posted 46% year-over-year revenue growth and 57% growth in billings, with net profit at INR 5 crore.

• Platinum and gold customers, making up 50% of the base and over 75% of revenue, maintained strong upsell and retention rates.

• AI initiatives are being implemented to enhance user experience, engagement, and platform trust.

Financial highlights

• Consolidated EBITDA was INR 130 crore, with a margin of 33%.

• Deferred revenue increased 18% year-over-year to INR 1,750 crore.

• Cash generated from operations was INR 114 crore; cash and treasury balance was INR 2,874 crore as of September 30, 2025.

• Collections from customers grew 14% year-over-year to INR 406 crore.

• Busy Infotech sold 12,000 new licenses in the quarter, bringing the total to 4,021,000.

Outlook and guidance

• Management remains focused on improving platform quality, customer service, and leveraging AI for long-term value creation.

• No specific guidance provided for future paid customer additions; churn remains elevated for silver customers.

• ARPU is expected to continue growing at a 6%-8% CAGR, with sustainable marketing and selling costs at 16%-18% of revenue.

• Strategic focus remains on expanding the buyer and supplier network, enhancing engagement, and driving commerce enablement, fintech, and SaaS business enablement.

• Continued investment in technology and employee incentives, including stock appreciation rights.