Brokerages Nomura and Citi have reiterated their positive stance on CarTrade Tech, highlighting the company's aggressive artificial intelligence push as a key driver of growth, monetisation and market share gains. Nomura has maintained its Buy rating with a target price of Rs 3,026, while Citi has also reiterated a Buy with a higher target of Rs 3,150, pointing to upside potential of 80-90% as execution strengthens across platforms.
CarTrade is doubling down on AI-led initiatives to deepen user engagement and unlock new revenue streams. With over 8.5 crore monthly unique visitors and a dominant 63% share in India's used car listing market, the company is leveraging its scale to strengthen its competitive moat.
A key upcoming rollout is the “Signature Dealer” experience, expected from next year, which will integrate AI agents across the car-buying journey. These agents will assist users with real-time information on inventory, pricing, discounts and financing options, while also enabling seamless test drive scheduling without requiring dealer intervention.
Citi notes that these AI products are built on CarTrade's strong dealer integrations, proprietary data and ecosystem partnerships, allowing for more personalised and efficient user experiences.
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Monetisation Levers Across Platforms
Both brokerages see significant headroom in monetising OLX's large and underpenetrated user base of around 18 crore users. New AI-led offerings such as Verified Product listings and Elite Buyer and Seller programmes are expected to improve trust, discovery and conversion rates.
Additionally, solutions like SuperDost (C2C) and Super Buyer Gold (C2B) are designed to match buyers and sellers more effectively based on preferences, enabling faster discovery and higher-quality leads. These tools also streamline inventory monetisation by connecting sellers directly with relevant buyers. Nomura highlights that the recent launch of Elite Buyer and Seller features on OLX has already seen strong acceptance, with AI-enabled variants expected to further enhance adoption.
Nomura expects CarTrade to deliver a revenue CAGR of 24% over FY26–28, driven by sustained market share gains and improved monetisation. OLX is likely to outpace this, with an estimated 25% revenue CAGR over the same period. Operational leverage is also expected to kick in, with EBITDA margins projected to expand from 35.4% in FY26 to 39.4% by FY28.
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