CarTrade Tech shares fell 4.6% after the company reported a sharp slowdown in quarterly revenue growth to 10.4%. While net profit remained nearly flat, the core consumer business underperformed expectations. Investors are now weighing this growth deceleration against the positive contribution from the OLX India segment, which remains a key growth pillar for the auto marketplace platform.
CarTrade Tech shares fell 4.61% on the National Stock Exchange following the release of its second-quarter financial results. The company reported revenue from operations of Rs 213 crore, representing a 10.4% increase compared to the same period last year. This growth rate marks a significant deceleration when compared to the 27% growth recorded in the second quarter of the 2025 financial year and the 29% expansion in 2026.
Despite the slower revenue growth, the company showed an improvement in operating profitability. Net profit saw a minor decline of 0.8% to Rs 59.5 crore, while EBITDA, a measure of operating profit, increased by 20% to Rs 76 crore. This indicates that while the top-line growth faced pressure, the company has been focusing on cost control measures to protect its operating margins.
The performance across business segments was mixed. The consumer business, which is a major part of the company's platform, saw revenue grow by only 4% year-on-year. This result was notably lower than the 17% growth that many market participants had expected. In contrast, the company’s acquisition of OLX India has provided stability to its operations. The OLX segment reported a 26% revenue increase and a 36% rise in EBITDA, serving as a vital contributor to the company’s overall performance.
Financial analysts have offered a balanced perspective on the results. Nomura has maintained a Buy rating on the stock, expressing optimism about the long-term outlook despite the immediate operational headwinds. Analysts at the brokerage firm noted that the OLX segment is expected to show growth acceleration beyond 30% in the second half of the 2027 financial year. The firm's outlook is based on the potential for better monetization through new initiatives, including programs for elite buyers and sellers, expanded partnerships with car dealers, and new tie-ups for used-car financing.
Investors tracking the company may monitor whether the growth in the OLX business can continue to offset the weakness observed in the core consumer segment in the coming quarters. The market is also keeping an eye on how the company balances its investment in new growth areas with the goal of improving profit margins through operational efficiency.