CarTrade Tech records Rs 85.45 crore PBT as margin hits 36%

CarTrade Tech Limited reported record Q2 FY27 total income of Rs 236 crore and record profit before tax of Rs 85.45 crore, while its earnings before interest, tax, depreciation and amortisation, or EBITDA, margin reached 36%, up from 31% in Q1 FY27. Consolidated revenue rose Rs 12 crore sequentially to a record Rs 213 crore.

What did CarTrade Tech report in Q2 FY27?

CarTrade Tech recorded its highest quarterly total income, consolidated revenue and profit before tax, with revenue reaching Rs 213 crore in Q2 FY27 from Rs 201 crore in Q1 FY27. Management said the revenue increase of Rs 12 crore was accompanied by 10% year-on-year growth and 13% growth for the first half of FY27. Total income, which included other income, was Rs 236 crore.

EBITDA was Rs 76 crore in Q2 FY27, compared with Rs 63 crore in Q1 FY27 and Rs 63.59 crore in Q2 FY26. Profit before tax rose to Rs 85.45 crore from Rs 74.52 crore sequentially and Rs 79.92 crore a year earlier. Management also said adjusted EBITDA, described as a cash proxy, exceeded Rs 106 crore during the quarter.

The operating data included average monthly active users, or MAUs, of 76 million, 96% organic traffic and 500 physical locations in Q2 FY27. CarTrade Tech was auctioning vehicles at an annualised rate of 1.6 million and reported cash reserves above Rs 1,400 crore as of September 30, 2026. These indicators accompanied the record revenue and PBT figures.

Why did CarTrade Tech's EBITDA margin reach 36%?

CarTrade Tech's EBITDA margin reached 36% because EBITDA rose faster than revenue while employee costs increased 8% year on year, according to management. The margin increased from 31% in Q1 FY27 and 33% in Q2 FY26. EBITDA growth was 20% both sequentially and year on year, based on the Rs 76 crore reported for Q2 FY27.

For the first half of FY27, EBITDA margin was 34%, compared with 29% in the first half of FY26, while first-half EBITDA increased 30% year on year. Management attributed the progression to operating leverage, saying revenue can increase without equivalent cost growth. It described building a higher-margin structure as an ongoing focus.

The segment figures show different contributors to the group result. The consumer group reported a 41% margin, with revenue from operations up 4%, EBITDA up 5% and profit after tax up 13% in Q2 FY27. Remarketing reported quarterly revenue growth of 12%, EBITDA growth of 29% and PAT growth of 47%, while OLX reported a 32% EBITDA margin and 36% EBITDA growth.

Why did CarTrade Tech's PAT rise only 3%?

CarTrade Tech's PAT rose 3% year on year to Rs 65.95 crore because Q2 FY26 included OLX expense write-backs and OLX had tax shelters that did not apply in Q2 FY27, management said. These factors affected the comparison even as Q2 FY27 PBT reached a record Rs 85.45 crore. PAT was also above the Rs 56.75 crore reported in Q1 FY27.

Management said Q2 FY26 contained about Rs 10 crore of OLX-related write-backs, contributing to higher other income in the prior-year quarter. It also referred to Rs 14 crore of write-backs in the previous year. The absence of comparable items lowered year-on-year other income and helped limit reported PBT growth to 7% despite the record quarterly amount.

At OLX, other income fell to Rs 4.41 crore in Q2 FY27 from Rs 13.51 crore in Q2 FY26, while tax increased 58% year on year, according to management. OLX PAT declined under those comparisons, but the business reported revenue growth of 26% and EBITDA growth of 36%. The difference between operating growth and PAT therefore reflected other income and tax rather than the revenue trend alone.

Which businesses drove CarTrade Tech's growth?

CarTrade Tech's OLX and remarketing businesses grew revenue faster than the consumer group in Q2 FY27, while the consumer group reported the highest disclosed margin of 41%. OLX revenue increased 26% in the quarter and 28% in the first half, while remarketing revenue increased 12% in the quarter and 13% in the first half. Consumer-group revenue from operations rose 4% in the quarter and 10% in the half year.

Management attributed slower consumer-group growth partly to a demanding comparison after a goods and services tax reduction on September 22, 2025. It said the new-auto business grew 37% in Q2 FY26 and had delivered more than 20% compound annual growth over two years. Management said it had not seen a material change in original equipment manufacturers', or OEMs', approach or their digital advertising budgets.

OEMs accounted for about 74% of consumer-business revenue in Q2 FY27, management said, with only a slight 3% to 4% change from the earlier mix. It also said the new-versus-used revenue mix was broadly unchanged. Within the faster-growing businesses, remarketing PAT rose 47%, while OLX combined its 26% revenue growth with a 32% EBITDA margin.

What has CarTrade Tech said about Q3 FY27?

CarTrade Tech management said Q3 FY27 is likely to be its best-ever quarter across almost all businesses and expects sequential EBITDA growth similar to the 20% increase reported from Q1 FY27 to Q2 FY27. This is management's outlook rather than a completed financial result. The expectation is based on management's view that business conditions remain favourable and costs can remain comparatively stable as revenue rises.

For OLX, management said quarterly growth should exceed the 26% rate reported in Q2 FY27 and could cross 30% to 35% in coming quarters. It cited existing-product growth, new product adoption, deeper Elite Buyer activity and the rollout of Elite Seller across a large part of the business. Management also referred to a Landmark partnership and e-commerce initiatives planned for future quarters.

Management said October 2026 was expected to deliver the best-ever monthly number for the new-auto business. It said the festival season ended in October in the prior year but was expected to extend into November in FY27, affecting timing. CarTrade Tech also reiterated its longer-term goal of becoming a Rs 1,000 crore profit company in four to five years.

Conclusion

CarTrade Tech's Q2 FY27 result combined record total income of Rs 236 crore, record PBT of Rs 85.45 crore and a 36% EBITDA margin, compared with 31% in Q1 FY27. OLX and remarketing produced the faster revenue growth, while the consumer group maintained the highest disclosed margin at 41%. The 3% PAT increase did not match EBITDA growth because prior-year OLX write-backs and the change in OLX tax treatment affected the comparison.

The next result will test management's expectation that Q3 FY27 will be the best-ever quarter for most businesses. The disclosed points to watch are whether OLX growth exceeds 26%, whether Elite Seller, Elite Buyer, Landmark and planned e-commerce initiatives add to revenue, and whether group EBITDA continues to rise sequentially after the Rs 13 crore increase in Q2 FY27.