CarTrade expects OLX growth to exceed 26% in coming quarters

CarTrade Tech Limited expects OLX revenue growth to exceed the 26% reported in Q2 FY 2027, as management sees momentum in existing products and early buyer monetisation. OLX earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 36% in the quarter and its EBITDA margin reached 32%.

Why does CarTrade expect OLX growth above 26%?

CarTrade expects OLX growth to exceed Q2 FY 2027's 26% rate because its established products are growing alongside newer offerings. Management said it had visibility that the growth rate would strengthen in the coming quarter and the quarter after, and separately said it expected OLX growth to cross 30% to 35% in coming quarters. Those figures are management expectations, not reported outcomes.

The reported trend supports that outlook. OLX revenue grew 26% year on year in Q2 FY 2027 and 28% in the half year ended September 2026, while quarterly EBITDA increased 36% and margin reached 32%. CarTrade said OLX profit after tax declined because other income fell to Rs 4.41 crore from Rs 13.51 crore a year earlier, while tax rose 58% year on year.

Management said much of the nearer-term improvement should come from existing products rather than solely new launches. It said increases in paid seller users, customer acquisition and product improvements are driving growth, while rate escalation is rare. In its view, new products will add to that base over later quarters rather than account for all growth above 26%.

What is driving OLX buyer and seller monetisation?

CarTrade said Elite Buyer is OLX's first buyer-led monetisation model and had seen substantial uptake in about its first 30 days. Management said OLX has roughly six times as many buyers as sellers, whereas a large proportion of historic monetisation has been directed at sellers. That buyer-to-seller difference is the basis for management's view that Elite Buyer can become a large part of OLX over time.

CarTrade did not disclose Elite Buyer revenue or an updated number of buyers in this call. An analyst cited 1 lakh Elite Buyers disclosed in July and days when more than 5,000 buyers were added, but management declined to give a current figure. It said the programme continued to grow and it might provide further data in a future quarter.

Elite Seller, a product for sellers in business and consumer categories, is live across a large part of OLX and is becoming a significant contributor to seller revenue, according to management. In response to a question on new-product contribution, management said it was below 10% to 15% of total OLX revenue. It nevertheless emphasised that older products remain the larger driver of the current 26% growth rate.

When will OLX launch escrow-enabled e-commerce?

CarTrade said OLX is building e-commerce capabilities with escrow and logistics support but has not provided a launch date. Management said technology development, partnership work and integrations were under way, and that services for non-auto categories, including mobiles, could go live in coming quarters. It did not disclose expected transaction volume, commission rates or revenue targets.

The intended service would allow a user to find and buy a product rather than only contact a seller through a classified listing. Management said 25% of India's mobile phones are sold on OLX, identifying mobile phones and white goods as initial non-auto categories. The proposed model would use escrow and logistics facilities to support transactions in those categories.

For cars, CarTrade pointed to its announced partnership with Landmark, under which Landmark would undertake much of the physical operating work. OLX's role would include technology, products and customers, management said. CarTrade described this as its first such dealer arrangement and said it could consider similar partnerships with other dealer groups in the future.

How could loans contribute to OLX revenue?

CarTrade has started bank integrations for loans on used products and used cars, but management described the initiative as early stage. It said it was working toward integrations with more banks and suggested the activity could become significant to the company 12 months from now. No number of bank partners, loan applications, disbursals or lending revenue was disclosed.

Management compared the lending rollout with the development path of Elite Buyer, where products begin contributing after one, two, three or four quarters. That is a description of the product cycle rather than a formal target. If the integrations progress, loans would add a potential monetisation route for OLX users beyond seller payments and buyer-focused products.

The group has reported operational leverage while it develops these products. Consolidated revenue rose by Rs 12 crore sequentially to Rs 213 crore in Q2 FY 2027 from Rs 201 crore in Q1, while group EBITDA rose to Rs 76 crore from Rs 63 crore. Management attributed the 20% sequential EBITDA increase to revenue growing faster than costs.

What do CarTrade's wider results show?

CarTrade reported Q2 FY 2027 total income of Rs 236 crore, its highest in company history, and profit before tax of Rs 85.45 crore, also a record, according to management. Profit after tax was Rs 65.95 crore, up 3% year on year. EBITDA margin expanded to 36% from 33% in the year-earlier quarter and 31% in Q1 FY 2027.

Management said the 3% profit-after-tax growth reflected a base effect from OLX expense write-backs in the prior-year quarter and the absence of previous OLX tax shelters. The Consumer Group recorded 4% revenue growth and 5% EBITDA growth, with a 41% EBITDA margin. CarTrade attributed the slower Consumer Group growth partly to a high base following goods and services tax reductions on September 22 of the prior year.

Remarketing had a different Q2 FY 2027 profile, with revenue up 12%, EBITDA up 29% and profit after tax up 47%. CarTrade attributed this to growth in SAMIL's retail business, where individual users sell vehicles to dealers through online auctions. Management said retail growth exceeded repossession growth and that retail carries its highest margins within SAMIL.

Conclusion

CarTrade's reported OLX performance combines 26% Q2 FY 2027 revenue growth, 36% EBITDA growth and a 32% EBITDA margin. Management's expectation of faster growth rests first on established seller products and buyer monetisation, with Elite Buyer addressing an audience it said is about six times the size of the seller base. Escrow-enabled commerce, dealer partnerships and loan integrations represent additional, but earlier-stage, routes to revenue.

The next disclosed milestone is Q3 FY 2027, which management expects to be its best-ever quarter in almost all businesses and to deliver sequential EBITDA growth similar to Q2's 20% increase. Investors can watch for an Elite Buyer update, a timetable for non-auto e-commerce, further bank integrations and progress in the Landmark car-commerce partnership.