/** This MDX content is based strictly on the provided IndiaMART investor presentation (Q4 and FY25-26) and Q4 FY26 earnings webinar transcript dated April 30, 2026. */

IndiaMART FY26: Double-digit growth, stable margins, and a trust-first push

IndiaMART InterMESH ended FY26 with steady growth in its core marketplace and improving momentum in its accounting subsidiary, Busy Infotech. On a consolidated basis, revenue from operations was 1,569 crore, up 11% year on year. Collections rose 12% to 1,857 crore, while deferred revenue increased 16% to 1,965 crore, reinforcing the company’s advance-collection model.

Profitability remained healthy at the operating level. FY26 consolidated EBITDA was 530 crore with a 34% margin. However, reported profits were impacted by investment mark-to-market movements in Q4. Consolidated net profit for FY26 was 475 crore, down 14% year on year, and Q4 consolidated net profit fell to 50 crore (14% margin), down 72% year on year.

What drove the quarter: growth held up, profits did not

Management attributed the sharp Q4 profit decline primarily to other income turning negative. Consolidated other income in Q4 was negative 34 crore, driven by mark-to-market losses on the treasury portfolio due to a rise in bond yields. The company described this as notional and potentially reversible over the long term. For the full year, other income was 204 crore.

Operationally, the core business remained steady. In Q4 FY26, consolidated revenue from operations grew 12% year on year to 404 crore. Collections rose 9% to 595 crore, and cash flow from operations was 290 crore (49% of collections). On a standalone basis, Q4 revenue from operations was 368 crore and EBITDA margin was 37%.

Marketplace metrics: supplier base steady, but net adds under pressure

IndiaMART’s scale metrics continue to be large, but recent quarters show a flattening in some activity indicators. In Q4 FY26 (standalone), the company reported 220K paying suppliers, up 1% year on year, but down by 1,236 sequentially during the quarter. Indian supplier storefronts stood at 8.7 million, up 5% year on year, while live product listings reached 129 million, up 9%.

On the buyer side, active buyers (last 12 months) were 41 million, down 3% year on year. Unique business enquiries were 27 million in Q4, down 1% year on year. Management linked the softness in enquiries partly to deliberate steps to increase trust and intent, including increased buyer-side verification and more structured RFQ capture.

A key operational theme in the earnings call was the impact of the Silver tier price increase implemented at the end of Q2. Management said the decline in paying suppliers in Q4 was primarily due to moderation in gross additions following the price hike. It also pointed to broader SME stress and a disruption in late February as an additional factor.

Churn commentary highlighted the gap between premium and entry tiers. Management stated monthly churn in Platinum is much less than 1%, Gold is around 1% to 1.5%, Silver annual is about 4%, and Silver monthly is about 7%. It also said Silver churn has worsened versus historical best levels, and indicated it will not provide net-add guidance until it sees multiple quarters of improvement.

Busy Infotech: high growth and margin expansion in FY26

Busy Infotech was a bright spot in the consolidated profile. FY26 revenue from operations was 119 crore, and billing was 170 crore. FY26 EBITDA was 21 crore (17% margin), with net profit of 20 crore (16% margin) and cash flow from operations of 49 crore.

In Q4, Busy reported revenue from operations of 34 crore and billing of 45 crore. Management also highlighted ongoing investments in product experience and said it is working on adding AI-led features in Busy.

License metrics also improved. FY26 total licenses sold reached 442 thousand, with 45 thousand new licenses sold in the year and 11 thousand in Q4.

Capital position and shareholder returns

IndiaMART continues to hold a large cash and investments balance. As of March 31, 2026, consolidated cash and investments were 3,280 crore. The presentation also highlighted a history of capital return to shareholders of around 1,300 crore.

For FY26, management stated that the board has recommended a total dividend of 60 per share, comprising a final dividend of 30 and a special dividend of 30, subject to shareholder approval.

Takeaways

FY26 reinforced IndiaMART’s ability to grow collections and revenue at a low-teens pace while sustaining strong EBITDA margins and cash generation. The quarter’s reported profit decline was heavily influenced by treasury mark-to-market losses, while operating performance remained stable.

The bigger medium-term question is growth composition. With paying supplier additions under pressure and activity metrics such as active buyers and enquiries showing softness, management is leaning into trust, verification, and AI-led improvements to raise enquiry quality and marketplace relevance. Busy Infotech adds a second growth lever, with strong FY26 execution and profitability improvement. For investors, the next phase likely depends on whether product and trust initiatives can re-accelerate the marketplace flywheel without sacrificing scale.