Cartrade Tech Ltd. shares fell nearly 5% in trade on Wednesday despite the company reporting positive earnings growth for the first quarter of fiscal 2027, supported by double-digit growth in revenue, profit and operating margins.
Investors were also tracking the company's user engagement, physical network expansion and artificial intelligence initiatives, as it continued to strengthen its digital automotive ecosystem.
The stock was trading at Rs 2,804 apiece, declining from its previous close at Rs 2,962.7 on NSE.
Revenue, Profit Grow In Double Digits
Cartrade Tech reported a consolidated net profit of Rs 51.2 crore in the June quarter, up 19.3% from Rs 42.9 crore a year ago.
Revenue rose 16.3% year-on-year to Rs 201 crore from Rs 173 crore in the corresponding quarter last year.
Operating performance remained robust, with earnings before interest, taxes, depreciation, and amortization increasing 46.7% to Rs 63.1 crore from Rs 43 crore a year ago. Ebitda margin expanded to 31.4% from 24.9%, reflecting improved operating efficiency.
The company said its platforms engaged around 80 million average monthly unique visitors during the quarter, marking growth over the March quarter. Organic traffic accounted for 95% of total traffic, highlighting the strength of its brand and content ecosystem.
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Expands Reach, Bets On AI
Cartrade Tech now operates through more than 500 physical locations, including Shriram Automall, CarWale abSure and Signature dealerships, along with OLX India franchise outlets, expanding its nationwide footprint.
Its flagship platforms—CarWale, BikeWale and OLX India—each attract more than 150 million annual unique visitors, while its remarketing business reached an annualised run rate of 1.5 million auction listings, reinforcing its leadership in the vehicle remarketing segment.
Commenting on the results, Chairman and Founder Vinay Sanghi said the company started FY27 on a strong footing with another quarter of profitable growth, driven by its diversified businesses across the Consumer Group, Remarketing and OLX India.
"We are pleased to begin FY27 on a strong note, delivering another quarter of profitable growth. Total income grew by 16% to an all-time high, EBITDA increased by 45%, with EBITDA margins at 31%, and Profit After Tax stood at ₹57 crore. This performance reflects the strength of our diversified business portfolio across Consumer Group, Remarketing and OLX India, supported by disciplined execution, operating leverage and a continued focus on profitable growth. With the launch of VAYA AI, we remain focused on leveraging technology, AI and partnerships to enhance customer experience, improve operational efficiency and create long-term value for our customers, partners and shareholders,”said Shanghi.
Share Price Movement
Despite the strong quarterly performance and improving operating metrics, Cartrade Tech shares traded about 5% lower following the earnings announcement on Wednesday. However, the stock rallied over 32% during the past year, and over 3.5% during the past month.
Currently, it is trading at a price-to-earnings multiple of 58.43 times, with a market cap of Rs 13,415.23 crore, as at the end of the previous trading session.
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