1. At a Glance – Blink and You’ll Miss the Plot
Vertoz Ltd is currently trading around ₹54.9, with a market cap of ~₹468 Cr, down almost 50% over the last one year—which is ironic for a company calling itself AI-driven in MarTech and CloudTech. Latest Q3 FY26 revenue came in at ₹75.4 Cr, up ~14% YoY, but PAT fell ~16% QoQ to ₹6.16 Cr, because apparently margins like to take tea breaks. Operating margins stood healthy at ~17.9%, ROCE at 14.7%, ROE at ~14%, and debt is a modest ₹18 Cr—so balance sheet is not drunk, just tipsy.
Valuation-wise, Vertoz is sitting at ~17.8x P/E, cheaper than industry average (~29x), but before you clap, note this: 80% promoter holding is pledged. Yes, eight-zero. That’s not a typo, that’s a red flag waving enthusiastically.
Despite a 3-year sales CAGR of 83% and profit CAGR of ~59%, the stock has delivered negative returns over 1, 3, and 5 years. So the business runs, numbers grow, but the stock… refuses to cooperate. Welcome to Vertoz.
2. Introduction – A Tech Company With an Identity Crisis
Vertoz is one of those companies that looks fantastic on a pitch deck. AI-driven MadTech. CloudTech. 350 million audience reach. 25,000+ marketing customers. 18,000+ cloud clients. 2.17 million domains processed. Data centres chewing through 1.2 petabytes daily. Sounds like Silicon Valley, priced like Surat.
Founded in 2012, Vertoz started as a programmatic advertising company and slowly decided it doesn’t want to be “just ads”. So now it’s ads + cloud + digital identity + monetization + domain reselling + DOOH + affiliate marketing. Basically, if it touches the internet, Vertoz wants a slice.
But markets hate confusion more than they hate losses. Vertoz is profitable, growing, and global—but also complicated, promoter-pledged, and capital-hungry. The result? A stock that behaves like it’s allergic to good news.
So the real question isn’t “Is Vertoz growing?”
It’s “Does the market trust this growth?”
And that’s where
things get spicy.
3. Business Model – WTF Do They Even Do?
Let’s simplify this without needing a PhD in AdTech.
Vertoz runs four broad verticals:
a) Marketing & Advertising
This is classic programmatic advertising—real-time bidding, audience targeting, campaign optimization. Platforms like Ingenious Plex and Admozart help advertisers buy eyeballs efficiently, while publishers monetize traffic.
b) Media & Monetization
Here Vertoz plays middleman between publishers and advertisers, squeezing margins from impressions, clicks, conversions, and affiliate traffic via Adzorite and Increment X. Think toll booth on the internet highway.
c) Digital Identity
This is where domain processing and reseller business comes in. Vertoz’s Connect Reseller platform makes it the second-largest domain processor globally, managing 3.48 lakh active domains. This is boring, stable, and cash-generating—aka the adult in the room.
d) Cloud Infrastructure
Hosting, data centers, QPS handling, and enterprise cloud solutions. Lower margins, high capex, but sticky customers.
In short:
Ads bring growth. Domains bring stability. Cloud brings ambition. Complexity brings confusion.
If you were explaining Vertoz to your lazy investor friend, you’d say:
“They sell ads, rent servers, and resell internet real estate—globally.”
4. Financials Overview – Numbers Don’t Lie, They Just Get Misunderstood
Consolidated figures in ₹ Crores
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 75.42 | 66.20 | 72.26 | 13.9% | 4.4% |
| EBITDA | 13.47 | 8.28 | 10.43 | 62.7% | 29.1% |
| PAT | 6.16 | 7.35 | 7.24 | -16.2% | -14.9% |
| EPS (₹) | 0.73 | 0.86 | 0.80 | -15.1% | -8.8% |
Commentary:
Revenue is growing steadily, EBITDA margins expanded nicely, but PAT slipped due
