MOTILAL OSWAL INITIATES BUY ON INDIAMART WITH A PRICE TARGET OF RS 2,500

IndiaMART Reports Strong 4QFY26 Revenue Growth, Undemanding Valuations

IndiaMART (INMART) has released its fourth-quarter (4Q) results for the fiscal year 2026 (FY26), showcasing a revenue growth of 14% year-over-year (YoY) compared to the research firm Motilal Oswal's estimate of 13% YoY growth. The company's deferred revenue also rose 16% YoY to INR19.6 billion.

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin declined by approximately 80 basis points (bp) quarter-over-quarter (QoQ) to 33%, surpassing Motilal Oswal's estimate of 31.4%. Adjusted Profit After Tax (PAT) was INR500 million, down 72% YoY, and below the research firm's estimate of INR878 million.

For the entire fiscal year (FY26), IndiaMART's revenue and EBITDA grew 13% and 1.4%, respectively, while adjusted PAT declined 15.3% YoY. Looking ahead to the first quarter (1Q) of FY27, Motilal Oswal expects revenue and EBITDA to grow 12.7% and 3.3%, respectively, while adjusted PAT is expected to dip 14.8% YoY due to normalization of other income.

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The research firm's analysis highlights IndiaMART's Return on Equity (RoE) for FY26 at 20.7%, compared to 28.1%, 17.7%, and 11.8% in FY25, FY24, and FY23, respectively.

Motilal Oswal reiterates its "BUY" rating on the stock, citing undemanding valuations and a target price (TP) of INR2,500. The research firm values IndiaMART on a Discounted Cash Flow (DCF) basis to arrive at the target price.