IndiaMART Shares Slipped ~10% Despite Reporting 36% Rise in PAT During Q3FY25

On January 22, 2025, IndiaMART shares dropped ~10% and touched the day low of ₹2064.10 at 09:20 AM after opening at ₹2,095.00. The fall in IndiaMART shares follows the release of Q3FY25 results. IndiaMART recorded 27 million unique business inquiries in Q3FY25, marking a 17% year-on-year growth. Supplier storefronts grew 5% year-on-year to 8.2 million, with 2,14,000 paying suppliers at the end of the quarter.

IndiaMART Q3FY25 Consolidated Performance

IndiaMART reported consolidated Revenue from Operations of ₹354 Crore, up 16% from ₹305 Crore in the same quarter last year. This includes ₹337 Crore from IndiaMART Standalone Revenue and ₹16 Crore from Busy Infotech, reflecting a year-on-year growth of 16% and 30%, respectively. Collections from customers rose 10% to ₹363 Crore for the quarter, mainly consisting of ₹341 Crore from IndiaMART Standalone and ₹20 Crore from Busy Infotech.

Deferred Revenue as of December 31, 2024, increased by 17% to ₹1,492 Crore, with ₹1,430 Crore from IndiaMART Standalone and ₹57 Crore from Busy Infotech. Net Profit for the quarter was ₹121 Crore, yielding a margin of 30%. Cash Flow from Operations stood at ₹114 Crore, and the Cash and Investments balance was ₹2,606 Crore as of December 31, 2024.

IndiaMART Q3FY25 Standalone Performance

Standalone Revenue from Operations increased by 16% to ₹337 Crore, compared to ₹291 Crore last year, driven primarily by improved realization from paying suppliers. Collections from customers reached ₹341 Crore for the quarter, and Deferred Revenue as of December 31, 2024, grew 16% year-on-year to ₹1,430 Crore. EBITDA for the quarter was ₹144 Crore, resulting in a margin of 43%. Net Profit was ₹125 Crore, yielding a margin of 35%.

Commenting on the performance, Mr Dinesh Agarwal, Chief Executive Officer, said: This quarter, we saw healthy growth in revenue and operating margins, along with a modest increase in deferred revenue and cash flow. We continue to focus on onboarding quality suppliers, improving matchmaking relevancy, and enhancing the overall user experience on our platform. We are confident in the strength of our business model and our unique position to capitalize on the increasing digital adoption by businesses. On the back of sustained profitability and healthy cash flow, we remain committed to strengthening our value proposition for all stakeholders.

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