IndiaMART InterMESH Limited – Investor Presentation Summary

Key Operational Highlights

  • Registered Buyers: 234 Mn (9% YoY growth)
  • Active Buyers (Last 12 Months): 41 Mn (5% decline YoY)
  • Unique Business Enquiries: 26 Mn (11% decline YoY)
  • Business Enquiries Delivered: 85 Mn (13% decline YoY)
  • Indian Supplier Storefronts: 8.8 Mn (5% YoY growth)
  • Live Product Listings: 132 Mn (8% YoY growth)
  • Paying Suppliers: 218K (flat YoY)
  • ARPU: ₹69 (9% YoY growth)
  • Top 10% ARPU: ₹349 (10% YoY growth)
  • Employees: 6,066 (4% decline YoY)
  • 1,852 paying suppliers declined this quarter

Key drivers of operational performance: Growth in registered buyers and supplier storefronts, increased ARPU, though some metrics like unique business enquiries showed decline.

Financial Highlights

Consolidated Performance:

  • Revenue from Operations: ₹414 Cr (11% YoY growth)
  • EBITDA: ₹146 Cr (10% YoY growth)
  • EBITDA Margin: 35%
  • Net Profit: ₹172 Cr (12% YoY growth)
  • Net Profit Margin: 33%
  • EPS: ₹29 (12% YoY growth)
  • Collections: ₹463 Cr (8% YoY growth)
  • Cash Flow from Operations: ₹163 Cr (2% YoY growth)
  • Deferred Revenue: ₹2,014 Cr

Standalone Performance:

  • Revenue from Operations: ₹376 Cr (9% YoY growth)
  • EBITDA: ₹149 Cr (11% YoY growth)
  • EBITDA Margin: 40%
  • Net Profit: ₹176 Cr (6% YoY growth)
  • Net Profit Margin: 38%
  • Collections: ₹402 Cr (8% YoY growth)
  • Cash Flow from Operations: ₹153 Cr (6% YoY growth)
  • Deferred Revenue: ₹1,858 Cr

Drivers of financial performance: Revenue growth across both consolidated and standalone businesses, margin expansion in standalone business.

Segment-wise Performance

  • IndiaMART standalone business contributed ~90% of total revenue
  • Busy Infotech revenue: ₹36 Cr (47% YoY growth)
  • Others segment revenue: ₹3 Cr

Explanation of significant changes in segment performance: Strong growth in Busy Infotech accounting software business contributing to overall performance.

Balance Sheet Snapshot

Consolidated:

  • Cash & Investments: ₹3,553 Cr
  • Strategic Investments: ₹741 Cr
  • Total Assets: ₹4,862 Cr
  • Capital & Reserves: ₹2,220 Cr
  • Deferred Revenue: ₹2,014 Cr

Standalone:

  • Cash & Investments: ₹3,316 Cr
  • Strategic Investments: ₹1,460 Cr
  • Total Assets: ₹4,822 Cr
  • Capital & Reserves: ₹2,365 Cr
  • Deferred Revenue: ₹1,858 Cr

Financial Health Insights: Strong cash position with ₹3,553 Cr in consolidated cash & investments, healthy deferred revenue balance.

Capex & Cash Flow Health

  • Capital expenditure: Minimal (₹0 Cr in Q1 FY27)
  • Cash Flow from Operations (Consolidated): ₹163 Cr (35% of Collections)
  • Cash Flow from Operations (Standalone): ₹153 Cr (38% of Collections)
  • ~₹1,650 Crore capital returned to shareholders including dividend payout for FY26

Investment Rationale: Focus on maintaining strong cash flow generation and returning capital to shareholders.

Strategic & R&D Initiatives

  • Investments in Accounting space: ~₹730 crores
  • Leveraging AI for enhanced user experience including product category intelligence, data insights, contextual user experience, multimodal search, content moderation, and user verification
  • Services include CRM – Lead Manager & Conversational Commerce with ~146 mn replies & callbacks during Q1 FY27

Strategic Rationale: Expanding into business enablement services beyond marketplace, focusing on accounting software and digital transformation for SMEs.

Industry Trends & Business Environment

  • India's largest online B2B marketplace with presence across ~98,000 categories
  • Well diversified across 57 industries
  • Geographic distribution: Metro cities (Delhi NCR, Mumbai, Bengaluru, etc.), Tier II cities (69), Rest of India (~4,000)
  • 2-way discovery marketplace with behavioral data driven algorithmic matchmaking

Impact on Company: Broad diversification across categories and geographies provides stability against sector-specific downturns.

Management Commentary & Growth Outlook

  • Focus on accelerating revenue growth at Busy Infotech through team investment and awareness building
  • Increase new licenses sold in accounting software business
  • Continue innovation in technology and user experience

ESG Updates

  • Environment: Emissions of 0.03 TCO2e per Mn Turnover, IGBC LEED Gold Certified Corporate Office
  • Social: 100% free assistance to buyers, ~48% buyers from small cities, 8.5Mn suppliers served free of charge
  • Governance: 63% independent directors, 100% board meetings chaired by independent directors
  • Community: 1.8 Million+ lives impacted through education and infrastructure initiatives