Why Did IndiaMart’s Profit Decline 14% in Q1 FY26?
Click to start listening
Synopsis
IndiaMart InterMesh Limited has reported a notable shift in its financial performance. With a sequential profit drop of 14%, the company aims to leverage its growing revenue and unique inquiries to navigate challenges. What does this mean for the future of this leading B2B marketplace?
Key Takeaways
- Profit fell 14% sequentially to Rs 153.50 crore.
- 34% YoY growth in consolidated net profit.
- Operational revenue reached Rs 372.10 crore.
- 29 million unique inquiries registered in Q1 FY26.
- Supplier storefronts grew to 8.4 million.
Mumbai, July 19 (NationPress) IndiaMart InterMesh Limited, the parent entity of the Business-to-Business (B2B) platform IndiaMart, reported a profit of Rs 153.50 crore for the first quarter of the fiscal year 2026 (Q1 FY26), marking a decline of over 14 percent sequentially.
In the previous quarter (Q4 FY25), the company had declared a profit of Rs 180.6 crore, as highlighted in an exchange filing.
On a positive note, the B2B platform's consolidated net profit surged 34 percent year-on-year (YoY), up from Rs 115.50 crore in the same quarter last year.
During the reported quarter, operational revenue reached Rs 372.10 crore, which is a 4 percent increase sequentially from Rs 355.10 crore and a 12 percent rise YoY from Rs 331.30 crore, according to its filing.
The company's total expenses for the quarter amounted to Rs 246.5 crore, reflecting an increase of over Rs 11 crore from Rs 234.7 crore in Q4 FY25 and Rs 24.6 crore from Rs 221.9 crore in the same quarter a year prior.
According to Dinesh Agarwal, the Chief Executive Officer, "We are committed to maintaining our growth trajectory, driven by a robust increase in revenue, deferred revenue, and cash flows."
Agarwal emphasized that the focus remains on fortifying the platform, enhancing user experiences for both buyers and suppliers, and refining offerings to meet the evolving demands of businesses.
In Q1 FY26, IndiaMart recorded 29 million unique business inquiries, representing a 17 percent YoY growth, as stated by the company.
The number of supplier storefronts rose to 8.4 million, showcasing a 6 percent YoY increase, with 2.18 lakh paying suppliers at the end of the quarter, indicating a net addition of 1,500.
IndiaMart serves as India's online B2B marketplace for commercial products and services, facilitating connections between buyers and sellers across various product categories and regions, thereby simplifying business transactions.
In another update, the company's shares closed at Rs 2,655.0, reflecting a 1.08 percent increase on the National Stock Exchange (NSE) on Friday.
Point of View
IndiaMart’s recent performance showcases both challenges and opportunities. While the sequential profit decline raises concerns, the year-on-year growth in net profit and revenue highlights the company's resilience and potential for future growth. It’s crucial for stakeholders to stay informed as IndiaMart navigates the evolving landscape of the B2B marketplace.
NationPress
19/07/2025
Frequently Asked Questions
What caused the sequential profit decline for IndiaMart?
The sequential profit decline of 14% was primarily due to increased expenses and market fluctuations.
How did IndiaMart perform year-on-year?
Year-on-year, IndiaMart reported a significant net profit increase of 34%, indicating strong growth despite the sequential decline.
What strategies is IndiaMart implementing to enhance user experience?
IndiaMart is focused on strengthening its platform and improving user experience for buyers and suppliers to meet evolving business needs.
How many unique business inquiries did IndiaMart register in Q1 FY26?
IndiaMart registered 29 million unique business inquiries in Q1 FY26, representing a 17% year-on-year growth.
What is the current share price of IndiaMart?
As of the latest trading session, IndiaMart's shares closed at Rs 2,655.0, reflecting a 1.08% increase.
