CarTrade Tech jumps 10% as Nomura lifts target 2026

Stock jumps as Nomura reiterates ‘Buy’

Shares of CarTrade Tech rallied in Wednesday’s trade after international brokerage Nomura reiterated its ‘Buy’ rating and raised its target price. Nomura lifted the target to ₹3,286 from ₹2,740, implying 22% upside from the then current levels cited in the note. In the same set of market updates, the stock was reported up as much as 6% to a day’s high of ₹2,846 on the BSE. Another trading update cited the stock surging 9.67% to ₹2,614.50, extending gains for a second straight day. The move came alongside broader investor focus on OLX India’s monetisation prospects and CarTrade’s push into a more transactional used-car model.

Why OLX is central to the target hike

Nomura attributed its more constructive stance to stronger medium-term growth visibility for OLX. The brokerage pointed to higher monetisation, the addition of new revenue streams, and the scope for further margin expansion. It highlighted OLX’s scale with around 30 million monthly active users. Nomura also noted OLX’s reach in supply, citing nearly 63% share of used-car industry listings. The brokerage’s view is that the platform’s scale creates room to improve yields per listing and deepen paid offerings without needing heavy balance sheet investment.

Elite programmes and verification plans: what Nomura expects

Nomura’s note referred to Elite programmes and verification plans introduced so far at OLX. Based on these initiatives, it said OLX has the potential to at least double its revenue from FY26 levels, assuming a modest 5% adoption rate. The brokerage added that this estimate does not include possible monetisation from financing, escrow, and logistics. In other words, Nomura’s doubling assumption is framed as a base case that excludes additional adjacent services. It also stressed the asset-light nature of the business as a structural positive for profitability.

Valuation view: 29x FY28E EBITDA cited as attractive

Nomura said the stock was trading at around 29 times FY28 estimated adjusted EBITDA. It described this as attractive in the context of its estimated adjusted EBITDA CAGR of around 32% over FY26-29. The brokerage’s framing suggests it is weighing valuation against expected earnings growth and the scope for operating leverage. This valuation view is also tied to the idea that margin expansion can continue as monetisation improves and newer, higher-margin revenue streams scale.

CarTrade Used Auto: pivot towards a transactional platform

Investor interest also picked up after CarTrade Tech unveiled CarTrade Used Auto, described as a new platform aimed at transforming India’s fragmented used-car market. The company is combining the strengths of CarWale and OLX India to create a unified, technology-driven and asset-light ecosystem. The stated coverage includes the entire used-car journey, spanning buying, selling, and exchanging vehicles. It also includes services linked to financing and ownership transfer. A separate market snapshot described this as an official pivot towards a full-stack transactional model.

Financing push stays “asset-light” via partnerships

CarTrade Tech is also eyeing India’s expanding used-car financing segment. Through CarTrade Used Auto Finance, it plans to offer customers multiple loan options via partnerships with leading banks and NBFCs. The company’s positioning across the updates consistently emphasised that the model will remain asset-light. That matters because the company and brokerages are linking the model to margin resilience and scalability, particularly if transaction-linked services expand over time.

Targets and scale: 2 million deals and ₹120,000 crore GMV

CarTrade Tech has communicated an ambition to build an integrated ecosystem targeting 2 million annual used-car deals. The potential Gross Merchandise Value (GMV) tied to that target was cited at ₹1.2 lakh crore, or ₹120,000 crore. One note argued that achieving even 50% of the 2 million deal target could reset how the market values the company, shifting emphasis from advertising-led revenue towards transaction fees. The company’s platform strategy is also being linked to increasing digitisation of India’s automobile ecosystem.

Recent financial and operating datapoints in focus

In May 2026, CarTrade reported FY26 results with profit after tax (PAT) rising 68% year-on-year to ₹244 crore. The company was also described as zero-debt in one of the market notes. Another market commentary cited a cash reserve of ₹1,244 crore, while a separate brokerage note referenced net cash of around ₹1,250 crore and described it as strategic optionality. Segment performance was also highlighted in a TV update: overall revenue increased 20% and EBITDA rose more than 55% to ₹72 crore versus ₹46 crore in the year-ago quarter, with EBITDA margin at 35% versus 27%. The same update said profit increased by 54%, and that consumer and remarketing segments posted revenue growth of more than 20% excluding OLX India.

Key numbers table

Market moves, technical indicators, and broker calls

The stock’s price action has been strong in several of the cited updates. One note said the stock gained nearly 12% over the last two trading sessions. Another said it rose about 37% over the last month and delivered 410% returns over three years, while a separate report also referenced a 40.33% decline over the past six months at the time of that note. From a technical standpoint, one update said the stock was trading above all eight key simple moving averages (SMAs). It also flagged the 14-day Relative Strength Index (RSI) at 71.9, placing it in overbought territory.

Broker views have been active across the coverage. Earlier this month, Kotak Institutional Equities upgraded the stock to ‘Buy’ with a target price of ₹2,300, citing synergy benefits from the OLX integration. InCred Equities initiated coverage with a ‘Buy’ and a target of ₹2,953, and cited expected margin expansion from 33% in FY26 to 40% by FY28 alongside a debt-free balance sheet and cash of about ₹1,250 crore. Another data point in the updates mentioned Citi with a target of ₹2,520.

Why the story matters for investors

The common thread across the broker notes and company updates is a push to widen CarTrade’s monetisation runway without changing the asset-light structure. Nomura’s upgrade logic relies heavily on OLX’s scale and the optionality in new services, while the company’s CarTrade Used Auto launch frames the strategy as a shift towards more transaction-led growth. The near-term market reaction has also been shaped by a mix of strong reported growth in FY26 profitability and expectations of operating leverage. What remains consistent in the coverage is that platform execution and monetisation adoption rates at OLX are key variables to watch.

What to track next

Investors will be watching how CarTrade Used Auto is rolled out across buying, selling, exchange, financing, and ownership transfer. Updates on adoption of Elite programmes and verification plans at OLX will also be important, given Nomura’s assumption of a modest 5% adoption rate in its revenue-doubling scenario. Any future commentary from the company on deal volumes, transaction take-rates, and partner-led financing traction will likely shape how the market assesses the pivot towards a full-stack transactional model.