1. At a Glance
India’s B2B kingpin just posted another quarter of growth—but is it a data-driven dynasty or a passive profit machine living on other income? The numbers are sharp, margins even sharper, but valuation? Hmm. Let’s scroll and shop for the truth.
2. Introduction with Hook
If Amazon is the mall, IndiaMART is the haat bazaar—messy, massive, and full of surprises. It’s India’s largest B2B classifieds marketplace, boasting nearly 60% market share, a whopping 7.9 million supplier storefronts, and over 100 million+ live listings.
- Q1 FY26 Revenue: ₹372 Cr (+31.9% YoY)
- Q1 FY26 Net Profit: ₹154 Cr (+85.5% YoY)
- Operating Margin: 32% (down from 35%, still elite)
But wait—₹92 Cr of that profit came from other income. Is IndiaMART’s core engine still revving?
3. Business Model (WTF Do They Even Do?)
This isn’t your neighborhood OLX. IndiaMART is:
- A subscription-based B2B marketplace where SMEs list products, buyers send RFQs (Request for Quotes), and transactions begin.
- Revenue Model:
- 90%+ from supplier subscriptions (SaaS-style)
- Rest from ads, value-added services
- No inventory, no delivery. Just matchmaking.
This makes it scalable, asset-light, and insanely cash-rich.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 | TTM |
|---|---|---|---|---|
| Revenue (₹ Cr) | 985 | 1,197 | 1,388 | 1,429 |
| EBITDA (₹ Cr) | 230 | 291 | 474 | 485 |
| Net Profit (₹ Cr) | 284 | 334 | 551 | 590 |
| EPS (₹) | 46.38 | 55.68 | 91.73 | 98.33 |
| OPM % | 23% | 24% | 34% | 34% |
The jump in FY25 net profit is partly due to ₹312 Cr in other income, so don’t let EPS alone sweep you off your feet.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹2,653 |
| PE Ratio | 27x |
| Book Value | ₹364 |
| P/B | 7.29x |
| EV/EBITDA | ~27x (core) |
Fair Value Range:
- DCF (core biz only): ₹2,100–₹2,500
- Peer-multiple adjusted (with other income): ₹2,400–₹2,800
- EduInvesting Range: ₹2,300 – ₹2,700
Currently, you’re not overpaying—but there’s no deep discount either.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Numbers: 32% OPM, ₹154 Cr PAT, healthy cash flows
- Dividend: ₹3,000 Mn paid in Q1 (yes, they’re sharing the love)
- Boardroom Update: Ms. Vasuta Agarwal appointed as Independent Director
- Cash Reserves: Still sitting on ₹3,453 Cr in investments
- Traffic & Listings: 252 Mn repeat visits, 194 Mn registered buyers
- FIIs down, DIIs up: Smart money rotation happening?
7. Balance Sheet
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 31 | 60 | 60 |
| Reserves | 2,028 | 1,676 | 2,125 |
| Borrowings | 46 | 41 | 33 |
| Total Liabilities | 3,442 | 3,449 | 4,130 |
| Cash & Investments | 2,784 | 2,746 | 3,453 |
IndiaMART is almost debt-free and practically swimming in liquidity. Safe balance sheet? Chef’s kiss.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow |
|---|---|---|---|---|
| FY23 | 476 | -324 | -143 | 9 |
| FY24 | 559 | 162 | -695 | 27 |
| FY25 | 623 | -486 | -148 | -11 |
Cash flow from ops is rock solid, but investment outflows and dividend payouts are starting to pinch a bit.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | 19% | 24% | 34% |
| ROE % | 20% | 24% | 27% |
| OPM % | 23% | 24% | 34% |
| Cash Conversion | 1 day | 1 day | 1 day |
Ratios are telling you the story: efficient, high-margin, and low friction. Basically, the Apple of B2B India.
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue (₹ Cr) | EBITDA (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % |
|---|---|---|---|---|---|
| Q1 FY25 | 331 | 108 | 114 | 19.01 | 33% |
| Q2 FY25 | 348 | 122 | 135 | 22.52 | 35% |
| Q3 FY25 | 354 | 124 | 121 | 20.16 | 35% |
| Q4 FY25 | 355 | 119 | 181 | 30.08 | 34% |
| Q1 FY26 | 372 | 119 | 154 | 25.57 | 32% |
Growth is steady, margins premium, but other income is consistently doing the heavy lifting.
11. Peer Comparison
| Company | CMP ₹ | P/E | OPM % | ROE % | PAT ₹ Cr | Sales ₹ Cr |
|---|---|---|---|---|---|---|
| Info Edge (Naukri) | 1,365 | 99x | 30% | 2.7% | 889 | 2,849 |
| Just Dial | 885 | 12x | 29% | 13.5% | 603 | 1,159 |
| Matrimony.com | 538 | 26x | 13% | 17% | 45 | 456 |
| IndiaMART | 2,653 | 27x | 34% | 27% | 590 | 1,429 |
IndiaMART wins on ROE, OPM, and quality of revenue. It’s the HDFC Bank of Indian B2B SaaS.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Jun 22 | Jun 23 | Mar 25 |
|---|---|---|---|
| Promoters | 49.22% | 49.22% | 49.17% |
| FIIs | 23.59% | 26.76% | 18.95% |
| DIIs | 4.96% | 5.62% | 15.49% |
| Public | 21.5% | 18.27% | 16.34% |
Observation:
- FII holding fell in FY25, but DIIs like mutual funds are soaking it up
- Promoter holding is stable—zero pledges
13. EduInvesting Verdict™
IndiaMART’s moat remains wide, its balance sheet squeaky clean, and cash flows gushing. But the heavy lifting by “other income” and slowing subscriber growth are warning signs. At 27x PE, it’s not a steal—but for long-term investors who believe India’s SME digitization story is just beginning, this marketplace may still have many more carts to fill.
Avoid FOMO, but don’t ignore the fundamentals.
Metadata
– Written by EduInvesting Research | 20 July 2025
– Tags: IndiaMART, B2B, Internet Marketplace, SME Digitization, Q1FY26, SaaS India, Digital Bharat
