IndiaMART InterMESH reported a steady performance for Q2 FY2026, with consolidated revenue rising 10% YoY to Rs 429 crore. While EBITDA remains strong at a 37% margin, the company faced a net decline of 615 paying suppliers, primarily due to churn in the Silver subscription tier. The firm is prioritizing retention over aggressive expansion while scaling its AI capabilities.
IndiaMART Q2 Performance: Revenue Rises as Subscriber Churn Remains a Focus
Consolidated Revenue: Rs 429 crore (10% YoY growth) | Net Profit: Rs 91 crore
Reader Takeaway: Revenue growth remains steady, but persistent churn in the Silver subscriber category limits net user expansion.
What just happened
IndiaMART InterMESH has released its financial results for the quarter ended September 30, 2026. The company posted a 10% year-on-year growth in consolidated revenue to Rs 429 crore, supported by a 9% rise in customer collections to Rs 443 crore. Consolidated EBITDA reached Rs 159 crore, representing a 37% margin.
Why this matters
The core business is showing resilience in revenue, yet the operational metrics show a slight cooling. The total paying supplier count dropped by a net 615 to 2,17,000. Management noted that while high-value Platinum and Gold segments—which drive 75% of revenue—remain stable, the Silver segment is experiencing elevated churn, prompting a shift in strategy away from aggressive subscriber acquisition until retention improves.
BUSY Infotech Performance
The subsidiary BUSY Infotech continues to be a growth engine. It reported a 27% YoY revenue jump to Rs 37 crore, with deferred revenue soaring 40% to Rs 155 crore. It added 11,000 new licenses during the period.
Strategic Initiatives
IndiaMART is leveraging AI across 20 internal processes, focusing on cataloguing and buyer-seller matchmaking. Regarding its business model, the company clarified it is not transitioning to a full transactional model but is exploring credit facilitation for large equipment purchases to support its marketplace ecosystem without assuming significant balance-sheet risk.
Risks to watch
The primary concern remains the plateauing supplier base. Increased competition and shifting search behaviors driven by AI technologies are creating volatility in business enquiries. Furthermore, while margins are currently elevated, management maintains a long-term EBITDA target of 33%.