Indiamart Inter. Q2 FY27 Results (NSE: INDIAMART)
Signal: Steady quarter
The read
The key inflection is margin recovery: consolidated EBITDA reached ₹159 Cr, +23% YoY, at a 37% margin versus the recent 30%-32% OPM range, while revenue growth decelerated to 10% from 12.4% in Q2FY26 and PAT fell 47% QoQ to ₹91 Cr. Deferred revenue growth of 16% to ₹2,029 Cr remains ahead of revenue growth, but paying suppliers declined 2% YoY to 217 thousand.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹429 Cr | 10% | 3% |
| Net profit | ₹91 Cr | 10% | |
| EBIT margin | 37% |
P&L walk
Revenue reached ₹429 Cr, +10% YoY and +3% QoQ, while EBITDA grew 23% YoY to ₹159 Cr at a 37% margin; PAT rose 10% YoY to ₹91 Cr but declined 47% QoQ, indicating weaker sequential earnings conversion despite margin recovery.
Segments
The group-level PAT of ₹91 Cr was ₹15 Cr below standalone PAT of ₹106 Cr, while consolidated EBITDA of ₹159 Cr exceeded standalone EBITDA of ₹156 Cr, indicating that subsidiary or consolidation-level items dragged reported profit despite a slightly higher group EBITDA.
Key positives
- Consolidated EBITDA increased 23% YoY to ₹159 Cr at a 37% margin, an improvement from the 30%-32% OPM range in the recent results series.
- Deferred revenue rose 16% YoY to ₹2,029 Cr, outpacing the 10% YoY revenue increase to ₹429 Cr and supporting future revenue visibility.
- Cash flow from operations was ₹135 Cr, up 19% YoY, while cash and investments stood at ₹3,234 Cr, up 13% YoY.
- Standalone EBITDA rose 36% YoY to ₹156 Cr at a 40% margin, with revenue growth driven by improved realization from paying suppliers.
Key concerns
- Revenue growth slowed to 10% YoY from 12.4% in Q2FY26, while paying suppliers declined 2% YoY to 217 thousand.
- Consolidated PAT declined 47% QoQ to ₹91 Cr despite EBITDA increasing 9% QoQ to ₹159 Cr, indicating weak sequential earnings conversion.
- Collections grew 9% YoY to ₹443 Cr, below deferred-revenue growth of 16% to ₹2,029 Cr, while cash flow from operations fell 17% QoQ to ₹135 Cr.
Research and educational content only. Not investment advice.