IndiaMART jumps 6% as Q3 collections beat estimates; brokerages bullish

IndiaMART InterMesh shares rallied sharply on Wednesday, rising as much as 6.22 per cent to an intraday high of ₹2,277, as investors reacted positively to the company’s third-quarter performance and upbeat brokerage commentary. 

 

Around 11:30 am, the IndiaMART InterMesh stock was trading 2.68 per cent higher at ₹2,201, even as the benchmark BSE Sensex was down 0.75 per cent at 81,565.86.

 

Brokerage JM Financial said IndiaMART’s consolidated collections grew 17 per cent year-on-year (Y-o-Y) in the December quarter, marginally ahead of its estimate of 16 per cent and a notable improvement over 14 per cent growth reported in the September quarter. On a like-to-like basis, collections rose 15 per cent year-on-year.

 

 

JM Financial highlighted Busy Infotech as the key growth driver, with billings expanding around 60 per cent Y-o-Y, or 28 per cent on a like-to-like basis. Standalone collections growth also accelerated to 14 per cent Y-o-Y from 8 per cent in the previous quarter, though the brokerage noted that this was largely driven by higher realisations rather than volume growth.

 

The brokerage flagged continued pressure on paid subscriptions, which declined by around 1,000 quarter-on-quarter (Q-o-Q) to 221,000 in Q3. This followed the rollout of a sharp price hike for new Silver-category customers in September 2025. JM Financial expects net paid additions to remain muted in the near term, including in the seasonally strong March quarter, due to elevated churn and the impact of higher pricing. The inability to revive subscription growth for the 10th consecutive quarter remains an overhang on the stock, it said. Nonetheless, JM Financial maintained its ‘Buy’ rating with an unchanged DCF-based target price of ₹2,800, citing reasonable valuations of 21x and 18x FY27 and FY28 earnings (ex-cash) and a healthy free cash flow yield of 5.5 per cent for FY27E.

 

Motilal Oswal, too, reiterated its ‘Buy’ rating, with a target price of ₹2,750. The brokerage said IndiaMART reported Q3FY26 revenue growth of 13 per cent year-on-year, ahead of its estimate of 11 per cent. Deferred revenue rose 17 per cent year-on-year to ₹1,750 crore, while Ebitda margin expanded about 30 basis points Q-o-Q to 33.5 per cent, above expectations. Adjusted profit after tax surged 56 per cent Y-o-Y to ₹189 crore, aided by higher other income, excluding a one-time labour code impact.

 

While churn levels remain elevated, Motilal Oswal said valuations are undemanding, supporting its positive stance on the stock.

   

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