Growth pressure continues; Maintain UNPF

Research evidence excerpt

Growth pressure continues; Maintain UNPF

India | Internet

IndiaMART EquityJulyResearch21, 2026

TARGET | ESTIMATE CHANGEGrowth pressure continues; Maintain UNPF

Jun-26 revs were in line while margins/profits were ahead. Decline in paid RATING UNDERPERFORM

supplier base for third straight quarter was a key negative surprise. Margin PRICE INR1,933.00^

expansion was driven by lower customer acquisition costs, which should PRICE TARGET | % TO PT INR1,650 (INR1,810) |

normalize once the gross addition picks up. Continued weakness in sub -15%

52W HIGH-LOW INR2,686.55 - INR1,860.15

adds can disrupt network effects historically enjoyed by the platform. We

FLOAT (%) | ADV MM (USD) 44.6% | 210.23

cut FY28-29E EPS by ~1.5-4% to factor in lower supplier adds and maintain

MARKET CAP INR116.1B | $1.2B

UNPF with PT of Rs1,650.

TICKER INMART IN

^Prior trading day's closing price unless otherwise

In-line Revenue; Margin/Profit beat: Indiamart's standalone revenues at Rs3.8bn, up 9% noted.

YoY, were tad below our estimate. EBITDA margins at 39.7%, up 80bps YoY, were above our

estimate. Profits, up 6% YoY at Rs1.8bn, beat estimates, primarily due to higher-than-expected

other income and EBITDA beat. While consolidated revenues, up 11% YoY, were in line with our FY (Mar) CHANGE TO JEFe JEF vs CONS

estimates, EBITDA (+10% YoY) and PAT (up 12% YoY) were above our estimates. 2027 2028 2027 2028

REV* NA <-1% NA NA

Sustained decline in Paid supplier base...: The third straight quarter of Paid supplier base EPS +2% -1% -1% -6%

decline (-1.8K in 1Q; -4.1K in last 3 quarters) was the key negative surprise from 1Q. Paid

supplier base continues to be impacted from moderation in gross addition and elevated churn 2027 (INR) Q1 Q2 Q3 Q4 FY

levels at the silver subscription tier.