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Results · Commerce & Consumer Brands

IndiaMART reports 12% rise in Q1 net profit but shares fall as paid supplier concerns mount

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Date
Company
IndiaMART
What it does
B2B e-commerce platform
Kind
Results
Founded
1996
Sector
Commerce & Consumer Brands

What they do

IndiaMART reported a 12% YoY increase in consolidated net profit to ₹172.2 Cr in Q1 FY27, with operating revenue rising 11% YoY to ₹414.4 Cr

What happened

Despite strong financial performance, shares fell 5.25% on the NSE as investors raised concerns over the continued decline in the number of paying suppliers

Why it matters

The company plans to launch a new subsidiary, IndiaMART Finance, to facilitate short-term working capital financing for buyers and sellers, though it will…

The details

  • IndiaMART reported a 12% YoY increase in consolidated net profit to ₹172.2 Cr in Q1 FY27, with operating revenue rising 11% YoY to ₹414.4 Cr.
  • The company's core web and related services business grew 9% YoY to ₹375.9 Cr, while its accounting software business saw a 49% YoY increase in revenue to ₹38.5 Cr.
  • Customer collections rose 8% YoY to ₹463 Cr, and the company generated 26 Mn unique business enquiries during the quarter.
  • Supplier storefronts increased 5% YoY to 8.8 Mn, but the number of paying suppliers stood at 2.18 Lakh at the end of June, continuing a trend of decline.
  • IndiaMART's board approved the incorporation of a wholly owned subsidiary, IndiaMART Finance, to facilitate short-term working capital financing for buyers and sellers.

The bigger picture

  • The decline in the number of paying suppliers, particularly in the silver tier, has raised concerns among investors.
  • Silver-tier suppliers struggle to compete with gold- and platinum-tier customers, often leaving the platform within their first year.
  • IndiaMART is using AI and other initiatives to improve retention and encourage silver-tier suppliers to upgrade to higher tiers.
  • The company is focusing on better monetisation from gold and platinum customers and improving the overall experience for buyers and sellers.

About the business

  • IndiaMART is one of India's largest online B2B marketplaces, connecting buyers with suppliers across categories such as industrial products, machinery, electronics, apparel, and consumer goods.
  • IndiaMART has expanded into SaaS through its subsidiary Busy Infotech, which provides accounting software solutions to businesses.
  • The company is now planning to enter the business lending space through its new subsidiary, IndiaMART Finance, which will facilitate short-term working capital financing for buyers and sellers.
  • IndiaMART's paid supplier plans include silver, gold, and platinum tiers, with higher tiers offering better visibility and more buyer leads.

What happens next

  • IndiaMART plans to launch its new subsidiary, IndiaMART Finance, to facilitate short-term working capital financing for buyers and sellers.
  • The company is using AI and other initiatives to improve retention and encourage silver-tier suppliers to upgrade to higher tiers.
  • IndiaMART will continue to focus on better monetisation from gold and platinum customers and improving the overall experience for buyers and sellers.

The deal

Type
results

Founders

  • Dinesh Agarwal, CEO

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