IndiaMART Intermesh Ltd Q2 FY26 – 83 Crore Profit, 391 Crore Revenue, and 108 Million Listings Later — Still India’s Most Profitable Bazaar
1. At a Glance
IndiaMART, the country’s largest B2B marketplace, just dropped its Q2 FY26 results — and it looks like the bazaar is still buzzing, but the hawkers are tired. Revenue came in at ₹ 391 Cr (up 12.4 % YoY) and PAT ₹ 83 Cr (down 38.8 % YoY — thanks to last year’s “other-income as-oxygen” effect). The stock trades near ₹ 2,344, down almost 10 % over three months, with a P/E of 26 ×, ROE 26.9 %, and ROCE 34.2 %. Market-cap sits at ₹ 14,072 Cr, dividend yield 1.28 %, and debt basically a rounding error.
So the marketplace that sells everything from bathroom tiles to bulldozers is still a cash machine — just that investors wanted AI fireworks, not accounting software mergers.
2. Introduction – The Great Indian Bazaar Online
Imagine Chandni Chowk got Wi-Fi and a subscription model — that’s IndiaMART. Founded by Dinesh Agarwal in the dial-up era, the platform has somehow convinced 7.9 million suppliers and 194 million buyers to talk business without meeting at a chai stall.
But Q2 FY26 shows that growth is no longer on steroids. Revenue is rising in single digits; profits are stable only because the company doesn’t have warehouses to burn. While peers like Info Edge and Just Dial chase “super-apps,” IndiaMART is building a SaaS empire quietly — buying stakes in everything from Busy Accounting to Fleetx Logistics to IDfy AI verification.
Still, investors ask: “Is it a tech company or a slightly more honest kirana CRM?” The answer lies somewhere between “Excel with a search bar” and “Tally with better marketing.”
3. Business Model – WTF Do They Even Do?
IndiaMART is a subscription-driven B2B marketplace where small businesses pay to be discovered. Buyers post RFQs (Requests For Quotation), sellers respond, and the company collects money like a digital tollbooth.
Revenue split? About 95 % from subscriptions and lead-generation fees; the rest from advertising and “value-added” tools. The company’s ARPU for top 10 % clients is ₹ 2.6 L per year, and the top 1 % pays nearly ₹ 9 L — the kind of loyalty only found in telecom bills or gym memberships never used.
Unlike e-commerce peers, IndiaMART doesn’t touch logistics, returns, or inventory. It just connects businesses and lets them fight in peace. It’s a B2B classifieds + CRM hybrid, monetised via recurring subscriptions and quotas of leads.
And now it wants to become the QuickBooks + LinkedIn of Indian SMEs by acquiring small SaaS players — an accountant’s version of a Marvel cinematic universe.
4. Financials Overview
Source table
Metric
Latest Qtr (Q2 FY26)
YoY Qtr (Q2 FY25)
Prev Qtr (Q1 FY26)
YoY %
QoQ %
Revenue (₹ Cr)
391
348
372
12.4 %
5.1 %
EBITDA (₹ Cr)
116
122
119
-4.9 %
-2.5 %
PAT (₹ Cr)
83
135
154
-38.8 %
-46.1 %
EPS (₹)
13.8
22.5
25.6
-38.8 %
-46.1 %
Commentary: Revenue is doing surya-namaskar; profits are doing plank. The YoY fall is due to last year’s “other income” fiesta (₹ 256 Cr in FY25 TTM). Core operations remain healthy with 30 % OPM, but the thrill is gone.
5. Valuation Discussion – The Fair Value Range
Let’s crunch some neutral, educational, totally-not-stock-tip numbers.
P/E Method: TTM EPS ≈ ₹ 89.6. Assume fair P/E range 22 – 30 × (Industry ≈ 27.5). → Fair Value Range = ₹ 1,970 – ₹ 2,690.
EV/EBITDA Method: TTM EBITDA ₹ 479 Cr, EV ₹ 14,065 Cr. EV/EBITDA ≈ 19 ×. Fair range 16 – 22 × → ₹ 12,000 – ₹ 16,500 Cr EV → Equity ≈ ₹ 2,000 – ₹ 2,750 per share.
