INDIAMART
Large CapIndiamart Intermesh Limited
Services
Indiamart Intermesh Limited operates India's largest B2B marketplace, connecting buyers and sellers across various industries. The company offers subscription-based services to suppliers and owns Busy Infotech, a business accounting software provider. It focuses on digitizing Indian businesses and enhancing platform trust through verification and AI.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -72% YoY · margin compression · Rev +14% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹404 Cr | +13.8% | +0.5% |
| EBITDA | ₹120 Cr | +0.8% | +0.0% |
| Operating margin | 30.0% | -400 bps | +0 bps |
| PAT | ₹50 Cr | -72.4% | -73.4% |
| PAT margin | 12.4% | -3861 bps | -3439 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 revenue from operations grew 14% YoY to Rs. 404 crores, with full-year revenue up 13% YoY to Rs. 1,569 crores. However, paying suppliers declined by 1,200 QoQ, attributed to price increases and market pain, while unique business enquiries also saw a 1% QoQ decline.
The core thesis of consistent paying supplier growth driving revenue is under stress, with net additions turning negative and management acknowledging a 'saturation point' in buyer/supplier growth. While ARPU growth is present, it's insufficient to offset customer acquisition challenges. Elevated Silver churn and external market pain are significant headwinds.
Revenue by Customer Tier
Latest issuer-disclosed distribution across 2 reported categories.
ARPU Growth
Currently, most of the growth is coming from ARPU, which is growing at 8-9%.
AI Integration
Embedding AI capabilities across platforms to improve product quality, discovery, and reinforce a trusted marketplace.
Busy Infotech Software
Busy continues to invest in improving product experience and adding AI-led features to drive sales and sustained high growth.
Value-Added Services
Experiments in logistics and credit facilitation are ongoing, though still pilot and not yet substantial.
Busy Infotech Licenses Sold
11,000 new licenses sold in Q4 FY26, taking total licenses to 442,000. 45,000 new licenses sold in FY26.
AI-Driven Platform Enhancements
AI is driving multiple parts of the ecosystem, combining proprietary data with next-generation intelligence for precise and seamless discovery.
Investee Company Performance
Six out of 13 investee companies have crossed Rs. 100 crores in turnover, with potential for IPOs in the next 2-3 years.
Moderation in Gross Additions
Decrease in gross adds due to price increase in the Silver subscription tier and geopolitical events (war) in Q4.
SME Market Pain
SMEs are 'really going through a lot of pain right now,' impacting customer acquisition and retention.
Buyer Verification Impact
New buyer verification processes are leading to approximately a 1% drop in conversion from traffic to enquiries.
Declining Net Paying Suppliers
Total paying suppliers decreased by 1,200 QoQ in Q4, indicating challenges in customer acquisition and retention.
Elevated Silver Churn
Silver monthly churn is running at 7%, a 2% deterioration from pre-COVID levels, impacting overall customer base growth.
Market Saturation & 'Vicious Loop'
Management acknowledges hitting a 'saturation point' and a 'worry of falling into the vicious loop' if buyer frequency and supplier trust don't improve.
Limited Headroom for Supply Growth
From a buyer's perspective, the platform fulfills almost 80% of needs, suggesting limited incremental value from merely increasing seller numbers.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is primary for financial results (revenue, collections, deferred revenue) as reported by management. QoQ is crucial for operational metrics like paying supplier additions and unique business enquiries to assess sequential momentum and recent trends.
Consolidated Revenue from Operations
Q4 FY26: Rs. 404 crores (14% YoY growth); FY26: Rs. 1,569 crores (13% YoY growth).
Consolidated Collections from Customers
Q4 FY26: Rs. 595 crores (10% YoY growth); FY26: Rs. 1,857 crores (14% YoY growth).
Consolidated Deferred Revenue
Rs. 1,965 crores (17% YoY growth).
Total Paying Suppliers
Negative220,000 at FY26 end; declined by 1,200 in Q4 FY26.
Commitment to Double-Digit Growth
Management will 'continue to aim for a double-digit growth in the near term' despite current challenges.
Future Customer Target
Aims to become at least half a million paying customers in times to come, believing there is 'at least 2x more opportunity'.
Growth Strategy
Will continue to look for both customer-led and ARPU-led growth in the medium term, not solely ARPU-led.
Capital Distribution
Consistent in distributing 40% to 60% of cash generated back to shareholders, with Rs. 60 dividend declared for FY26.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Paying Supplier Additions | -1,200 QoQ in Q4 FY26 | Return to positive net additions and sustained growth in subsequent quarters. |
| Unique Business Enquiries | 27 million, declined 1% QoQ | Stabilization and subsequent growth, indicating improved buyer engagement despite verification efforts. |
| Silver Churn Rates | 7% monthly | Any improvement in retention numbers, particularly for the Silver segment, to support customer base growth. |
| ARPU Growth | 8-9% | Sustained ARPU growth and its ability to offset potential stagnation in customer base expansion. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -7.1% / mo · near 52W low
Technical chart
INDIAMARTweekly · 1Y-18.6%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 43. Wait for confirmation.
- SMA20 falling (~7.6% over last month) — short-term momentum negative.
- RSI(14) at 43 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 25% off 52W high · 5% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 41.0%.
- Cash flow contributes 8/10 to the score.
Main drags
- Valuation is weaker at 9/30; verify the latest quarterly trend.
- Growth is weaker at 14/25; verify the latest quarterly trend.
- Quality is weaker at 13/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 93rd percentile of the scored universe and 97th percentile within Services. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Services: 97th pctile, median 66 · Large: 81st pctile, median 74
130 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.9%.
- ▸8 years of positive FCF.
- ▸Debt/equity is 0.01.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 25.40
- P/B
- 5.03
- EV/EBITDA
- 24.05
- Market Cap
- 12074.00Cr
Profitability
- ROE
- 20.70%
- ROCE
- 28.00%
- ROA
- 10.27%
- Dividend Y
- 1.49%
Growth (CAGR)
- Revenue 5Y
- 19.00%
- EPS 5Y
- 11.00%
- Revenue 3Y
- 17.00%
- EPS 3Y
- 19.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 158.33×
- Altman Z
- 4.83
- Book Value
- 399.00
Cash Flow
- FCF Yield
- 2.87%
- FCF Positive Y
- 8/5
- OCF
- 694.00 Cr
- EPS TTM
- 79.00
Shareholding
- Promoter Hold
- 49.12%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 11%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.