IndiaMART Surges 6% as Q3 Collections Beat Estimates, Brokerages Bullish

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AuthorIshaan Verma|Published at:
IndiaMART Surges 6% as Q3 Collections Beat Estimates, Brokerages Bullish
Overview

IndiaMART InterMesh shares rallied sharply, climbing as much as 6.22% to an intraday high of ₹2,277 on Wednesday. Investors reacted positively to the company's third-quarter performance, which saw consolidated collections grow 17% year-on-year, surpassing analyst expectations. Key subsidiaries also posted robust billing growth. However, the company faces ongoing challenges with declining paid subscriptions due to recent price hikes, impacting near-term subscriber additions.

Q3 Performance Drives Surge

IndiaMART InterMesh shares experienced a significant upswing, reaching an intraday high of ₹2,277, marking a 6.22% gain. This rally was fueled by strong third-quarter financial results that exceeded market expectations. Consolidated collections expanded by 17% year-on-year, a notable improvement and a beat against the 16% estimate. On a like-to-like basis, collections grew 15%.

Key Growth Drivers and Concerns

The company's subsidiary, Busy Infotech, emerged as a primary growth engine, with billings surging approximately 60% year-on-year. Standalone collections also accelerated to 14% year-on-year from 8% in the prior quarter, primarily due to higher realization rates rather than increased volumes. Despite these positives, IndiaMART faces continued pressure on its paid subscriber base. The number of paid subscriptions declined by around 1,000 quarter-on-quarter to 221,000 in Q3, following a significant price increase for new Silver-category customers implemented in September 2025.

Brokerage Outlook Remains Positive

Leading brokerages have reiterated their optimistic stance on IndiaMART. JM Financial maintained its 'Buy' rating with an unchanged target price of ₹2,800, citing reasonable valuations of 21x and 18x FY27 and FY28 earnings, alongside a healthy free cash flow yield. Motilal Oswal also reiterated its 'Buy' recommendation, setting a target price of ₹2,750. The firm highlighted Q3FY26 revenue growth of 13% year-on-year and a significant 56% surge in adjusted profit after tax to ₹189 crore, supported by deferred revenue growth and margin expansion. Both analysts noted that while churn remains elevated, current valuations are considered undemanding.

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