CarTrade Tech gains 5% intraday after Q3 results; JM Fin upgrades stock

JM Financial said it does not see any major change to CarTrade Tech's revenue estimates across segments and expects the margin trajectory to improve

Shares of CarTrade Tech Ltd. pared gains after rising over 5 per cent on Thursday after an analyst upgraded the stock after it reported a 31 per cent jump in its third quarter earnings for the current financial year (Q3-FY26).

 

The company's stock rose as much as 5.38 per cent during the day to ₹2,536.3 per share, the steepest intraday gains since December 22, 2025. The stock pared gains to trade 0.4 per cent higher at ₹2,415 apiece, compared to a 0.32 per cent decline in Nifty 50 as of 11:38 AM. 

 

CarTrade Tech counter has fallen 14.5 per cent this year, compared to a 3.5 per cent decline in the benchmark Nifty 50. CarTrade Tech has a total market capitalisation of ₹11,550.48 crore. 

 

CarTrade Tech Q3 results 

CarTrade Tech reported a 30.85 per cent year-on-year (Y-o-Y) rise in net profit to ₹55.86 crore for the quarter ended December 2025, compared with ₹42.69 crore in the corresponding quarter a year earlier. Revenue from operations increased 18.98 per cent to ₹209.67 crore during the quarter, up from ₹176.22 crore in the same period last year.

 

The Consumer Group business continued to scale profitably, posting 27 per cent year-on-year growth in revenue and a 17 per cent rise in profit after tax. The Remarketing business also delivered a strong performance, with revenue growing 12 per cent year-on-year and profit after tax surging 68 per cent.

 

During the quarter, CarTrade Tech attracted around 85 million average monthly unique visitors, with about 95 per cent of traffic coming organically, underscoring the company’s strong brand equity and leadership in content.

Analysts on CarTrade Tech earnings 

JM Financial said it does not see any major change to its revenue estimates across segments and expects the margin trajectory to improve further, supported by strong operating leverage and steady business performance.

 

As a result, the brokerage marginally raised its Ebitda estimates by 0-2 per cent for FY26 to FY28. It lowered the valuation multiple for the New Auto segment to 35 times from 40 times earlier, factoring in a higher market risk premium and more normalised growth assumptions.

 

JM Financial expects the recovery in OLX to gain further momentum, while the Remarketing business is seen sustaining its recovery, albeit with a normalising base. The brokerage said the recent correction has made the risk-reward attractive at current market prices. Viewing CarTrade as one of the fastest-growing classifieds platforms in India, JM Financial upgraded the stock to 'Buy' from 'Add', while lowering its target price to ₹2,910.

 

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