Indian small business owner in wholesale shop, using digital tablet and ledger.
IndiaMART InterMESH, a prominent Indian B2B ecommerce platform, announced a 12% year-over-year increase in its consolidated net profit for the first quarter of FY27, reaching ₹172.2 crore. This marks a significant rise from ₹153.5 crore in the same period last year. On a sequential basis, the company’s profit saw a more than 3.4X jump from ₹50.2 crore in the previous quarter.
The company’s operating revenue grew by 11% year-over-year and 3% sequentially to ₹414.4 crore. Including other income of ₹106.7 crore, IndiaMART’s total income for the quarter stood at ₹521.1 crore. EBITDA also saw a healthy increase of 10% year-over-year and sequentially, reaching ₹14.6 crore.
Core Marketplace Performance
The core marketplace, encompassing web and related services, continued to be the primary revenue driver, growing 9% year-over-year to ₹375.9 crore. IndiaMART’s accounting software business, Busy Infotech, also demonstrated strong growth, with revenue rising 49% year-over-year to ₹38.5 crore.
Customer collections across the platform increased by 8% year-over-year to ₹463 crore, while Busy Infotech reported collections of ₹59 crore. IndiaMART facilitated 26 million unique business enquiries during the quarter. The number of supplier storefronts grew by 5% year-over-year to 8.8 million, with 2.18 lakh paying suppliers recorded by the end of June.
Total expenses for the quarter rose by 12% year-over-year to ₹274.8 crore, with employee benefit expenses being a significant contributor, increasing to ₹174 crore.
“We continued our emphasis on sustainable growth and elevating overall marketplace experience by building a highly trusted, reliable environment for our buyers and sellers… Deployment of AI, from standardised cataloging and intelligent matchmaking to advanced conversational tools, is streamlining user interactions and driving efficiency,” stated CEO Dinesh Agarwal.
Strategic Expansion into Lending
In a significant strategic move, IndiaMART’s board has approved the incorporation of a wholly owned subsidiary, IndiaMART Finance. This new entity is intended to provide short-term working capital financing to the company’s business users. The company believes this initiative will enhance customer trust, engagement, and retention by offering crucial credit solutions to both buyers and sellers on its platform.
IndiaMART will initially subscribe to the entire paid-up capital of ₹5 lakh for the proposed subsidiary. The incorporation is subject to necessary approvals from the Ministry of Corporate Affairs and other regulatory bodies.
Founded in 1996, IndiaMART operates one of India’s largest online B2B marketplaces, connecting a diverse range of buyers with suppliers across various sectors. The company’s expansion into business lending follows its earlier diversification into SaaS through Busy Infotech.
Shares of IndiaMART closed 0.74% lower at ₹1,919.15 on the BSE.
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