IndiaMart's revenue growth is projected at 14.8%/17.6%/18.3% in FY26E/27E/28E, with Ebitda margins expected to moderate to 33.8%/33.0%/33.3% over the same period due to marginally higher marketing spends and continued investment in platform enhancements. This implies revenue, Ebitda, and EPS CAGRs of 18%/17%/19% respectively over FY26–28E.
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HDFC Securities Institutional Equities
HDFC Securities has upgraded IndiaMart InterMesh Ltd. to Buy, citing improving growth visibility and limited downside risk as churn in the silver-tier customer segment begins to stabilize.
The brokerage has raised its target price to Rs 2,800 (from Rs 2,560), implying a P/E of 27x on FY28E earnings per share.
IndiaMART registered a ~19%/17% CAGR in revenue and collections respectively over FY20–25, driven by an ~8.1%/7.5% CAGR in paying subscribers and average revenue per user.
Ebitda grew at an even faster pace of ~25% CAGR during the same period, supported by margin expansion from 26.0% in FY20 to 37.6% in FY25. The company has stepped up investments, which has led to the margin contracting to ~34% in H1 FY26E, and we expect it margins to settle at ~33% as growth accelerates and investments continue.
Revenue growth is projected at 14.8%/17.6%/18.3% in FY26E/27E/28E, with Ebitda margins expected to moderate to 33.8%/33.0%/33.3% over the same period due to marginally higher marketing spends and continued investment in platform enhancements. This implies revenue, Ebitda, and EPS CAGRs of 18%/17%/19% respectively over FY26–28E.
IndiaMART is currently trading at a P/E of 24x on FY27E earnings, significantly below its five-year average of ~45x.
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