No respite from declining paid subscriber numbers: Customer churn remains elevated; maintain Reduce

研报英文原文证据摘录

No respite from declining paid subscriber numbers: Customer churn remains elevated; maintain Reduce

Global Markets Research

IndiaMART INMR.NS INMART IN 21 July 2026

EQUITY: MEDIA & INTERNET

RatingNo respite from declining paid subscriber numbers Remains Reduce

Target price INR 1,810 RemainsCustomer churn remains elevated; maintain Reduce

Closing price INR 1,918 21 July 2026Paying subscriber addition woes continue – reduction continued in 1Q

In 1QFY27, Indiamart lost 1.8k paying subscribers (vs 1.2k lost in 4QFY26 and 1k lost in 3QFY26). Implied upside -5.6%Gross addition remains anaemic and customer churn remains elevated, aggravating the subscriber

addition problem, in our view. Customer collections rose ~8% y-y to INR4bn, and were largely Market Cap (USD mn) 1,198.6

driven by increased average revenue per user (ARPU). Recall, the company increased prices of its ADT (USD mn) 2.1

Silver Monthly and Annual products by ~33% and ~15%, respectively, in 3QFY26. Gross addition

(due to ongoing marketing efforts) have not yet picked up. We believe the company’s long-term

ambition of ~20% collection growth (10% driven by ARPU increase and 10% by customer base Relative performance chart

increase) needs a significant push on the latter.

Product evolution critical to improve subscriber addition in medium to long term

Indiamart’s experimentation with performance marketing and affiliate marketing on digital platforms

such as Meta and Youtube to reduce churn and increase ARPU continued in 1QFY27. Churn

remains elevated and stable. Unique business enquiries (which we see as a lead indicator for value

delivered to paying subscribers) were down sharply by 11% y-y. Our key concern about its business