First Read CarTrade Tech: OLX delivers; new monetisation levers ahead

Research evidence excerpt

First Read CarTrade Tech: OLX delivers; new monetisation levers ahead

and margin expansion of 770bps to 29.1% 03/27E 63.43 58.16

despite temporary higher other expenses. Overall, employee cost was up owing to 03/28E 84.46 73.60

annual increments despite which EBITDA growth remained strong. 03/29E 103.51 88.73

Key management commentary and growth outlook Shaleen Kumar

Analyst

CarTrade highlighted that platform engagement remains strong, with Q1FY27 MAUs shaleen.kumar@ubs.com

higher both YoY and sequentially. Management announced a strategic partnership with +91-22-6155 6065

Spinny and indicated similar partnerships with large dealer groups are under discussion.

Angad Saluja

The objective is to combine CarTrade's consumer reach, digital capabilities and AI-led

Associate Analyst

buyer journey with partners' operational and physical infrastructure. This will allow the angad.saluja@ubs.com

company to move beyond listing fees into transaction-led monetisation and margin- +91-22-6155 6174

sharing models while remaining asset-light. On OLX, monetisation initiatives are gaining

Raksha Saraf

traction, with the Elite Buyer program surpassing 100,000 paid buyers in a month with Associate Analyst

further improving trends. Management reiterated its focus on used car financing raksha.saraf@ubs.com

ecosystem through partnerships such as IDFC First Bank, and its potential given the +91-22-6155 6041

used-car loan take rates of ~2–3%. The company also plans to extend financing

offerings beyond used cars to categories such as used electronics and appliances as

further monetisation levers.

Valuation: Maintain Buy with an unchanged PT of Rs4,000

Maintain Buy with unchanged estimates and PT of Rs4,000. We value CarTrade using

DCF. Our price target implies ~43x PE on FY28-29 average earnings.