IndiaMART Q2 profit rises 10% to Rs 91 cr, revenue at Rs 429 cr

Online B2B marketplace IndiaMART reported a 10% increase in its consolidated net profit to Rs 90.7 crore for the quarter ended September 2026 (Q2 FY27). The company had reported a profit of Rs 82.6 crore in the year-ago period.

Its operating revenue grew 10% year-on-year to Rs 428.6 crore in the September quarter of FY27, despite a decline in paying suppliers, active buyers and unique business enquiries.

During the quarter, IndiaMART’s paying supplier base fell 2% YoY to 217,000 due to elevated churn in Silver subscriptions. Annualised revenue per paying supplier increased 10% year-on-year to Rs 72,000, driven by Gold and Platinum subscriptions.

Active buyers on the B2B marketplace declined 7% YoY to 40 million, while unique business enquiries slipped 14% to 27 million, the company’s investor presentation showed.

IndiaMART moves content behind logins as search shifts to AI

On the analysts’ call, co-founder and CEO Dinesh Agarwal said unique business enquiries declined partly due to Google AI Overviews and partly because the company has moved some content behind logins to prevent unrestricted scraping of its website by search engines and large language models (LLMs).

Google has been sending less traffic to classifieds businesses like IndiaMART and Info Edge as its AI Mode and AI Overviews increasingly respond to user queries themselves.

IndiaMART is “okay to let go of this 10-20% of current business enquiry” to protect its proprietary data, said Agarwal.

100% marketplace model ruled out

Asked whether IndiaMART would consider shifting from its current classifieds model to a fully transactional marketplace model, as rival Justdial is reportedly contemplating, he said, “We do not aspire to complete the entire transaction, which means completely doing away with the listing model”.

Explaining his rationale, Agarwal cited the company’s failed experiments in the past, including Tolexo and a payment platform.

However, IndiaMART does intend to move closer to the transaction layer. That’s why it is running credit facilitation pilots. Management clarified that the company does not want to lend directly from its own balance sheet.

Zooming into expenses

Revenue grew faster than expenses during the quarter. IndiaMART’s spending rose 3% YoY to Rs 276.3 crore, compared to a 10% increase in revenue. On a unit economics basis, the company spent Rs 0.64 to earn every rupee in Q2 FY27.

• Employee benefits expense: This remained the company’s biggest expense head and was largely flat at Rs 171 crore.
• Customer support expenses: Stood at Rs 20.2 crore in the September quarter of FY27, up 31% from Rs 15.4 crore in the corresponding quarter last year.
• Internet and other online expenses: Increased 31% to Rs 21.4 crore in Q2 FY27 from Rs 16.3 crore in the year-ago period.

Also read:

• CCPA delists 3,940 sellers of explosives from IndiaMART, Justdial and five other platforms
• IndiaMART approves MSME lending arm as paying supplier losses deepen

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