Cartrade Tech Q2 FY27 Results (NSE: CARTRADE)
Signal: Margin expansion
The read
The trajectory remains margin-led rather than growth-led: revenue growth decelerated to 10.2% YoY from 16.2% in Q1FY27, but operating margin expanded to about 35.7% from roughly 31%, with Classifieds driving the acceleration; parent PAT was held back by a 19.5% decline in other income and higher minority interest.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹213.09 Cr | +10.2% | +5.9% |
| EBIT | ₹65.35 Cr | +20.5% | |
| Net profit | ₹59.49 Cr | -0.3% | |
| EPS | ₹12.3 | -2.1% | |
| EBIT margin | 35.7% |
P&L walk
Revenue increased to ₹21,309.18 lakh, +10.2% YoY and +5.9% QoQ, while segment results rose to ₹8,236.46 lakh, +22.9% YoY, lifting operating margin to about 35.7%; parent PAT slipped 0.3% YoY because lower other income and higher non-controlling interest offset operating gains.
Segments
Classifieds was the main growth driver at ₹7,018.15 lakh of revenue, +26.4% YoY, and ₹2,672.97 lakh of segment result, +41.8%, while Consumer revenue grew only 4.3%; the consolidated result also materially exceeded standalone PAT because of subsidiary contributions.
Key positives
- Operating margin was about 35.7%, up 480bps YoY, as segment results rose 22.9% while revenue rose 10.2%.
- Classifieds revenue grew 26.4% YoY to ₹7,018.15 lakh and segment result grew 41.8% to ₹2,672.97 lakh, making it the fastest-growing disclosed business.
- Employee expense grew 7.9% YoY versus revenue growth of 10.2%, supporting margin expansion.
- H1 operating cash flow rose to ₹13,751.13 lakh from ₹9,238.76 lakh, while PPE and CWIP increased alongside depreciation.
Key concerns
- Revenue growth slowed to 10.2% YoY from 16.2% in Q1FY27, while Consumer revenue grew only 4.3%.
- Parent PAT declined 0.3% YoY to ₹5,948.76 lakh despite operating improvement, because other income fell 19.5% and non-controlling interest increased to ₹646.73 lakh.
- Other income of ₹2,313.42 lakh represented about 27.1% of consolidated profit before tax, leaving reported earnings meaningfully supported by investment and other non-operating income.
- Share-based payment expense rose 86.6% YoY to ₹636.03 lakh and diluted EPS was ₹11.88 versus basic EPS of ₹12.30.
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