IndiaMart reported Q1 FY26 revenue growth of 12% YoY vs our estimate of 10% YoY growth. Deferred revenue rose 16% YoY to Rs 17 billion. Ebitda margin was down ~90 bp QoQ to 36%, in line with our estimates of 36.4%.
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Motilal Oswal Report
We continue to view IndiaMart Intermesh Ltd. as a key beneficiary of the growing technology adoption by India's MSME universe and the ongoing shift toward a formalized ecosystem.
We keep our estimates largely unchanged. We expect IndiaMart to deliver a 13% revenue CAGR over FY25-27. We estimate the Ebitda margin at 33.4%/33.1% for FY26/FY27.
Currently, IndiaMart is trading at an undemanding valuation, in our view, as the valuations reflect uncertainties surrounding the churn rate, productmarket fit, and subscriber growth.
We value IndiaMart on a DCF basis to arrive at our target price of Rs 3,050, assuming 11.5% WACC and 6% terminal growth. Reiterate Buy.
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