IndiaMART InterMESH reported a 9.8% year-on-year increase in consolidated net profit to approximately ₹90.8 crore for the second quarter of FY27, while revenue from operations grew 9.6% to ₹428.64 crore. The B2B online marketplace released its results for the quarter ended September 30, 2026, following approval by its board on October 27.
The results reflect continued revenue growth, higher customer collections and an expanding deferred-revenue balance. However, the company also reported a decline in its paying-supplier base and a sharp sequential drop in quarterly profit, partly because other income turned negative after being unusually high in the previous quarter. These contrasting indicators make supplier retention, marketplace engagement and the sustainability of revenue growth important factors to watch.
Key Takeaways
- Net profit: Consolidated profit increased 9.8% year on year to approximately ₹90.8 crore.
- Revenue growth: Revenue from operations rose 9.6% to ₹428.64 crore.
- Customer collections: Consolidated collections increased 9% to ₹443 crore.
- Deferred revenue: The balance rose 16% year on year to ₹2,029 crore.
- Supplier base: IndiaMART ended the quarter with approximately 217,000 paying suppliers, with a net decline of 615 during the quarter.
- Business enquiries: The platform recorded 27 million unique business enquiries.
- Profitability: Consolidated EBITDA reached approximately ₹159 crore, representing a margin of around 37%.
IndiaMART Q2 FY27 Financial Results
IndiaMART’s consolidated results show annual growth across revenue, net profit and operating earnings. The figures below compare the September 2026 quarter with the corresponding period in FY26.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹428.64 crore | ₹391.04 crore | +9.6% |
| Net profit | ₹90.8 crore | ₹82.7 crore | +9.8% |
| Total income | ₹421.0 crore | ₹401.2 crore | +4.9% |
| Total expenses | ₹276.27 crore | ₹269.2 crore | +2.6% |
| Earnings per share (basic) | ₹15.09 | ₹13.77 | +9.6% |
| Consolidated EBITDA | Approximately ₹159 crore | Approximately ₹130 crore | Approximately +23% |
Figures are rounded where appropriate. Sources: HDFC Sky/PTI, Free Press Journal and Q2 FY27 earnings call transcript.
Revenue grew faster than total expenses, supporting operating profitability. EBITDA increased to around ₹159 crore, with a margin of approximately 37%. However, the company’s total income was lower than its revenue from operations because other income turned negative during the quarter.
Why Did IndiaMART’s Profit Rise?
IndiaMART operates a digital marketplace connecting business buyers with suppliers across numerous product and service categories. Its core revenue model relies on paid supplier subscriptions that provide businesses with greater visibility and access to potential customers.
The company’s revenue growth reflects higher revenue from its marketplace operations, including improved realization from paying suppliers. Consolidated revenue from operations increased from approximately ₹391 crore in Q2 FY26 to ₹428.64 crore in Q2 FY27.
Net profit rose from around ₹82.7 crore to ₹90.8 crore over the same period. Total expenses increased by approximately 2.6%, slower than the 9.6% increase in operating revenue.
This difference suggests that revenue growth outpaced the increase in the company’s overall expense base. Still, one quarter alone cannot establish whether the trend will continue. Supplier retention, customer acquisition costs and spending on technology and sales will remain important indicators of future profitability.
Sequential Profit Decline: Why the Comparison Matters
Although IndiaMART’s profit increased year on year, consolidated net profit fell approximately 47.3% from ₹172.2 crore in Q1 FY27 to ₹90.8 crore in Q2 FY27.
The main factor was the sharp change in other income. IndiaMART recorded approximately ₹106.7 crore in other income in the June quarter, compared with negative other income of around ₹7.6 crore in September.
The company’s earnings-call discussion attributed the negative other income primarily to mark-to-market losses associated with rising bond yields. Management described these losses as notional and expressed the view that they could reverse in subsequent quarters, although that outcome is not guaranteed.
The sequential comparison therefore needs context. The decline in reported net profit does not necessarily indicate a comparable deterioration in the core marketplace business. Revenue from operations actually increased approximately 3.4% quarter on quarter, from around ₹414.4 crore to ₹428.64 crore.
For investors, separating operating performance from fluctuations in investment-related income provides a more useful view of the company’s underlying business trends.
Customer Collections and Deferred Revenue Strengthen Visibility
IndiaMART reported consolidated customer collections of ₹443 crore in Q2 FY27, an increase of 9% year on year. Collections provide an indication of cash received from customers, while recognized revenue reflects the portion recorded under accounting rules during the period.
Deferred revenue reached ₹2,029 crore as of September 30, 2026, representing 16% growth from the year-earlier period.
Deferred revenue generally represents payments received or billed for services that have not yet been fully recognized as revenue. For a subscription-based business, this balance can provide visibility into revenue recognition over future periods, although it is not the same as guaranteed future profit.
The company also reported ₹135 crore in cash generated from operations during the quarter and a cash and treasury balance of ₹3,234 crore at the end of September. These figures highlight IndiaMART’s capacity to generate operating cash while maintaining a substantial financial reserve.
Supplier Base and Business Enquiries Remain Important
Despite the increase in revenue, IndiaMART’s operating indicators show areas that deserve attention.
| Operating metric | Q2 FY27 |
|---|---|
| Unique business enquiries | 27 million |
| Paying suppliers | Approximately 217,000 |
| Net change in paying suppliers during the quarter | Down 615 |
| Supplier storefronts | Approximately 8.9 million |
| Consolidated customer collections | ₹443 crore |
| Deferred revenue | ₹2,029 crore |
The company reported 27 million unique business enquiries during the quarter, while its paying-supplier base declined by a net 615 during the period. The earnings call also indicated elevated churn among suppliers on Silver subscriptions.
A decline in paying suppliers can matter because subscriptions are central to IndiaMART’s marketplace business. If more suppliers leave than join, the company may need stronger acquisition, retention or upselling efforts to maintain growth.
Management said its Gold and Platinum customers continued to show encouraging upselling and retention trends. These higher-tier customers account for a substantial share of the paying-supplier base and revenue, making retention in those categories especially relevant.
The company is also working on AI-enabled discovery, matchmaking and voice-based applications. These efforts could improve the experience for buyers and suppliers, but their long-term commercial impact will depend on adoption and measurable improvements in engagement and monetization.
Busy Infotech Adds to IndiaMART’s Business Portfolio
IndiaMART’s accounting software business, Busy Infotech, also contributed to consolidated performance.
Busy reported approximately ₹37 crore in revenue from operations during Q2 FY27, up 27% year on year. Billing increased 20% to ₹46 crore, while deferred revenue and advances reached approximately ₹155 crore, an increase of 40%.
The company said it had sold approximately 11,000 new licenses during the quarter, bringing its total licenses sold to around 466,000. It is also working on a technology revamp and expanding its product capabilities.
Busy gives IndiaMART exposure beyond its core supplier marketplace. Growth in accounting software could help diversify its revenue base, although investors should continue to monitor the segment’s profitability, customer acquisition and recurring revenue.
The Bigger Picture
IndiaMART’s Q2 FY27 results show a business delivering steady annual revenue and profit growth while navigating changes in investment-related income and supplier activity. Higher customer collections, growing deferred revenue and strong operating cash generation provide encouraging signs. However, the decline in paying suppliers and the number of unique enquiries are important indicators to track alongside financial results.
The company’s next phase of growth will depend on retaining paying suppliers, improving buyer-seller matching and expanding the contribution of adjacent businesses such as Busy. AI-led discovery and conversational tools may help improve marketplace engagement, but their success will ultimately be measured by supplier retention, enquiry quality, monetization and sustained earnings growth.
FAQs
1. What was IndiaMART’s net profit in Q2 FY27?
IndiaMART InterMESH reported consolidated net profit of approximately ₹90.8 crore for Q2 FY27, up 9.8% from around ₹82.7 crore in Q2 FY26.
2. What was IndiaMART’s Q2 FY27 revenue?
Consolidated revenue from operations reached ₹428.64 crore, compared with approximately ₹391.04 crore a year earlier, representing 9.6% growth.
3. Why did IndiaMART’s profit fall compared with Q1 FY27?
Net profit declined approximately 47.3% quarter on quarter, largely because other income changed from a substantial positive amount in Q1 to a negative amount in Q2. Management linked the negative other income mainly to mark-to-market losses associated with higher bond yields.
4. How many paying suppliers does IndiaMART have?
IndiaMART had approximately 217,000 paying suppliers at the end of Q2 FY27. The company reported a net decline of 615 suppliers during the quarter.
5. What is IndiaMART’s deferred revenue?
IndiaMART’s consolidated deferred revenue reached ₹2,029 crore at the end of September 2026, up 16% year on year. Deferred revenue generally represents payments received or billed for services that have not yet been fully recognized as revenue.
Looking Ahead
Investors will be watching whether IndiaMART can sustain revenue growth while stabilizing its paying-supplier base and improving marketplace engagement. Customer collections, deferred revenue, enquiry trends and retention across subscription tiers will help indicate whether its growth is supported by a healthy underlying marketplace.
The company’s AI initiatives and Busy software business provide additional avenues for development, but sustained progress will depend on converting those initiatives into stronger customer retention, recurring revenue and operating performance. The Q2 FY27 results are encouraging on an annual basis, while the supplier and enquiry metrics underline the importance of execution in the quarters ahead.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
