IndiaMART InterMESH Limited started FY27 on a strong note by reporting healthy growth in both revenue and profit during the first quarter. The B2B marketplace also announced a major expansion plan by approving a new finance business that will offer working capital and business loans to small and medium enterprises (SMEs).
The company’s latest quarterly results show steady business growth despite some challenges in adding new paying customers. Along with improving its financial performance, IndiaMART is also investing more in artificial intelligence (AI) and expanding its services beyond its online marketplace.
IndiaMART Reports Strong Revenue and Profit Growth in Q1 FY27
For the quarter ended June 30, 2026, IndiaMART reported consolidated revenue from operations of ₹414.4 crore, an increase of more than 11% compared to the same period last year. The company’s net profit also grew by around 12% year-on-year to ₹172.2 crore. Profit also recovered sharply compared to the previous quarter.
Total income for the quarter stood at ₹521.1 crore, helped by higher other income. EBITDA came in at ₹146.5 crore, while the EBITDA margin remained healthy at around 35.4%.
The company’s total expenses increased to ₹274.8 crore, mainly because of higher employee costs, which stood at ₹174 crore. Diluted earnings per share (EPS) improved to ₹28.56 from ₹25.52 in the same quarter last year.
On a standalone basis, IndiaMART earned revenue of ₹375.9 crore. Standalone EBITDA stood at ₹149 crore with a strong margin of around 40%, while standalone net profit reached ₹176 crore.
IndiaMART also maintained a strong financial position during the quarter. It generated operating cash flow of ₹163 crore and had cash and investments worth ₹3,553 crore. Deferred revenue, which gives an idea of future earnings, increased 16% year-on-year to ₹2,014 crore. Customer collections also grew 8% to ₹463 crore.
Its accounting software business, Busy Infotech, continued to perform well. The segment reported revenue of ₹38.5 crore, up nearly 49% from last year. Busy Infotech also continued adding around 12,000 new software licences every quarter, showing steady demand from businesses.
IndiaMART Enters SME Lending Business
Along with its financial results, IndiaMART’s board approved the formation of a new wholly-owned subsidiary called IndiaMART Finance Limited.
The new company will start with an initial paid-up capital of ₹5 lakh and will provide short-term working capital loans, business finance and credit support to buyers and sellers using the IndiaMART platform. The company will begin operations after receiving the required approvals from the Ministry of Corporate Affairs and the Reserve Bank of India (RBI).
With this move, IndiaMART is entering the embedded finance space. The company believes that offering financial services will help small businesses get easier access to working capital while also increasing customer engagement and loyalty.
The finance business will also allow IndiaMART to use its marketplace data to better understand customer needs and offer suitable credit solutions.
AI Focus Continues as Marketplace Grows
IndiaMART is also increasing the use of artificial intelligence across its platform. The company is introducing AI-powered features such as better product cataloguing, smarter buyer-seller matching, Smart Replies and Voice Agents to improve the user experience.
Founder and CEO Dinesh Agarwal said AI is helping the company make business communication faster and more efficient. During the quarter, IndiaMART facilitated around 146 million replies and callbacks between buyers and suppliers.
The marketplace received 26 million unique business enquiries during the quarter. It now has around 41 million active buyers, 8.8 million supplier storefronts and nearly 132 million live product listings.
However, the number of paying suppliers fell slightly during the quarter. IndiaMART ended Q1 FY27 with around 218,000 paying suppliers after losing 1,852 subscribers compared to the previous quarter. Even so, the company earned more from each paying customer, with annualised revenue per paying supplier increasing 9% year-on-year to ₹69,000.
The company’s premium customers continue to play an important role in its business. The top 10% of paying suppliers contribute more than half of IndiaMART’s total revenue, while the top 1% alone account for around 16%.
IndiaMART also reported a combined loss of ₹14.6 crore from its associate companies during the quarter.
Even after reporting better earnings and announcing its entry into the finance business, IndiaMART’s shares closed lower before the results were announced. The stock ended at ₹1,919.15 on the BSE on July 21. However, analysts remain positive about the company’s long-term growth, supported by its strong financial position, growing use of AI and expansion into SME lending.