This article first appeared on GuruFocus .
-
Consolidated Revenue from Operations:INR402 crore, 13% year-on-year growth.
-
Collections from Customers:INR426 crore, 17% year-on-year growth.
-
Deferred Revenue:INR1,775 crore, 19% year-on-year growth.
-
Unique Business Inquiries:28 million, 4% year-on-year growth.
-
Total Number of Paying Suppliers:Declined by 1,000 to 221,000.
-
Busy Infotech Billing:INR33 crore in Q3, 28% normalized year-on-year growth.
-
Busy Infotech Revenue from Operations:INR32 crore, 50% normalized growth.
-
Busy Infotech Deferred Revenue:INR112 crore, 56% normalized growth.
-
Busy Infotech Cash Flow from Operations:INR6 crore for the quarter.
-
Consolidated EBITDA:INR134 crore, 33% margin.
-
Consolidated Other Income:INR135 crore, includes INR82 crore one-time fair valuation gain.
-
Consolidated Net Profit:INR188 crore.
-
Consolidated Cash Generated from Operations:INR129 crore.
-
Consolidated Cash and Treasury Balance:INR3,051 crore as of December 31, 2025.
-
Warning! GuruFocus has detected 1 Warning Sign with BOM:542726.
-
Is BOM:542726 fairly valued? Test your thesis with our free DCF calculator.
Release Date: January 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
IndiaMART InterMESH Ltd ( BOM:542726 ) reported a consolidated revenue from operations of INR402 crore for Q3 FY26, marking a year-on-year growth of 13%.
-
Collections from customers increased to INR426 crore, representing a year-on-year growth of 17%.
-
Deferred revenue grew to INR1,775 crore, showing a year-on-year growth of 19%.
-
The company is rapidly adopting AI-enabled technologies to enhance product quality and user experience, reinforcing trust across the marketplace.
-
Busy Infotech, a subsidiary, reported a normalized year-on-year growth rate of 28% in billing, with revenue from operations at INR32 crore and deferred revenue at INR112 crore.
Negative Points
-
The total number of paying suppliers declined by 1,000 to 221,000, attributed to a price increase in the silver subscription and fewer working days due to the festival season.
-
Unique business inquiries grew only by 4% year-on-year, a slowdown compared to previous quarters.
-
There is a slight reduction in advertisement spending due to holidays, impacting the visibility and potential customer acquisition.
-
The company faces challenges in accelerating the addition of new paid suppliers, with churn levels remaining unchanged.
-
Concerns were raised about the impact of new labor codes, resulting in a one-time expense of INR8.5 crore.
Q & A Highlights
Q: The paid supplier numbers have been subdued for a few quarters. Is the market saturated, or do you plan to change the business model? A: Dinesh Agarwal, CEO, stated that the market is not saturated. There is ample demand for quality leads that sellers can convert. The company prefers to remain a tech-oriented platform without moving to a fulfillment model. They are focusing on improving product-market fit to generate more buyers, which should eventually increase the customer count.
Q: There has been a reduction in advertisement spending. When will it reach INR10 crore quarterly? A: Dinesh Agarwal explained that the reduction was due to holidays like Diwali and Dussehra, where ads were not run. The company is optimizing costs and targeting more keywords. While there is hope for an uptick, there is no specific timeline for reaching the INR10 crore spend.
Q: Unique business inquiries have slowed down. Are there seasonal factors affecting this? A: Dinesh Agarwal attributed the slowdown to seasonal factors, including holidays that reduced advertising days. Historically, Q3 is lower than Q2, and the company advertised fewer days this quarter, impacting inquiry growth.
Q: How is the churn level, and when will you feel confident to accelerate new paid supplier additions? A: Dinesh Agarwal mentioned that churn levels remain unchanged. The company is focusing on improving inquiry quality and quantity. Once there is a consistent trend over a few quarters, they will consider investing more in gross additions.
Q: Can you explain the impact of the new labor code on your business? A: Jitin Diwan, CFO, stated that there was a one-time impact of INR8.5 crores due to the new labor code, which has been accounted for in the financials.
Q: What is the typical progression of paid suppliers from silver to gold or platinum tiers? A: Dinesh Agarwal explained that historically, 15-20% of silver customers move to gold, and 10% from gold to platinum. However, due to a drop in renewals, upsell rates have decreased to 8-9%.
Q: How does the company view the shift from Google Search to AI search in terms of traffic? A: Dinesh Agarwal noted that while AI search expands the total addressable market, the company is focusing on repeat traffic, which is at an all-time high. IndiaMART features well in AI searches, even if direct links are not provided.
Q: How are the accounting products differentiated from competitors like Tally? A: Brijesh Agrawal explained that Busy targets small and medium businesses with inventory and GST needs, Vappar focuses on micro businesses with mobile billing, and Livekeeping offers browser-based access for Tally users, each catering to different customer segments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
