Growth visibility remains high led by OLX: 1QFY27 EBITDA ahead; focus on monetisation, new initiatives to drive value unlocking in OLX

Research evidence excerpt

Growth visibility remains high led by OLX: 1QFY27 EBITDA ahead; focus on monetisation, new initiatives to drive value unlocking in OLX

Global Markets Research

CarTrade Tech CART.NS CARTRADE IN 29 July 2026

EQUITY: CONSUMER RELATED

RatingGrowth visibility remains high led by OLX Remains Buy

Target price1QFY27 EBITDA ahead; focus on monetisation, new Increased from INR 3,340initiatives to drive value unlocking in OLX INR 3,286

1QFY27: EBITDA ahead of both our and consensus estimates Closing29 July 2026price INR 2,856

CarTrade Tech’s 1QFY27 consolidated revenue of INR2bn (+16% y-y) was ~1%/3% below our/

consensus estimates (Fig.1). Adjusted EBITDA margin was ahead at 34.3% (Nomura: 31.6%, Implied upside +16.9%

consensus: 31%), leading to EBITDA of INR689mn (+46% y-y). Adjusted PAT at INR691mn was

up 32% y-y. Net cash rose further to INR13.2bn in 1QFY27 (INR12.4bn as of 4QFY26). Market Cap (USD mn) 1,442.9

ADT (USD mn) 29.9Segment-wise: Key surprise was in OLX, with revenue growth of 29% y-y (Nomura: 18% y-y), with

EBITDA margin at 33.6% (Nomura: 29.6%). This was partly offset by slower Consumer business

Relative performance chart(standalone) revenue growth of 18% y-y (Nom: 23% y-y), with adjusted EBITDA margin at 37.2%

(Nomura: 36.2%). Remarketing revenue growth was in line at 13% y-y, with EBITDA margin at

28.3%. Monthly Unique Visitors (MAUs) improved to ~80mn in 1Q (~76mn in 4Q).

Management commentary – OLX: Announced a partnership with Spinny which provides the

ability to tap into transaction margins. This should improve both user and seller experience

meaningfully, and later expand into financing etc. It will extend this with more large dealer groups.

On Elite programs, seller is already ~25% of seller revenue and Buyer adoption is going up (>100k