CarTrade’s Q2 margin rebounds as expenses fall despite higher revenue
Operating margin recovered from Q1FY27, though higher tax and reliance on other income limited the conversion of operating gains into net profit.
Filed 28 Oct 2026, 11:45 IST · Cartrade Tech Ltd (CARTRADE)
Key takeaways
- CarTrade’s consolidated operating margin widened 4.36 percentage points QoQ to 35.67% as revenue grew 5.93% while expenses fell 0.80%.
- Consolidated net profit rose 2.92% YoY to Rs 65.95 cr, but the 22.81% tax rate was 2.98 percentage points higher and other income represented 27.07% of PBT.
- The 35.67% operating margin was 23.17 percentage points above the 12.50% median for 73 reported Consumer Discretionary peers.
Price around the results
Revenue growth translated into a sharp operating rebound
Consolidated revenue grew 10.18% YoY and 5.93% QoQ, while expenses rose only 5.60% YoY and fell 0.80% QoQ. That gap lifted operating profit 19.52% YoY and 20.67% QoQ. Net profit rose 2.92% YoY but increased 16.21% QoQ, reflecting the stronger sequential operating performance.
Lower costs helped margins, but profit quality remains mixed
The operating margin expanded 2.79 percentage points YoY and 4.36 percentage points QoQ because expenses did not keep pace with revenue. The tax rate increased 2.98 percentage points YoY, limiting net-profit growth, although it fell 1.03 percentage points QoQ. Other income contributed 27.07% of pre-tax profit, making it a material part of reported earnings.
Margin recovers from Q1 but stays below the recent peak
The operating margin has moved from 25.14% in Q1FY26 to 32.88%, 37.32%, 35.27%, 31.31% and 35.67% in the subsequent five quarters. Q2FY27 therefore marks a recovery from the Q1FY27 trough, but it remains below the 37.32% peak in Q3FY26. The margin was also 23.17 percentage points above the 12.50% median across 73 reported Consumer Discretionary peers.
Presentation sets out a scale-led growth narrative
Management’s presentation describes its FY2023-FY2027 growth story as a 22% revenue CAGR, alongside a 66% EBITDA CAGR and a 54% PAT CAGR. Management also said the company’s ambition is to become an always-on intelligence and action platform for OEMs, dealers and the wider automotive ecosystem.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹213 cr | ₹201 cr | +5.93% | +10.18% |
| Other income | ₹23 cr | ₹26 cr | -9.29% | -19.49% |
| Expenses | ₹137 cr | ₹138 cr | -0.80% | +5.60% |
| Operating profit | ₹76 cr | ₹63 cr | +20.67% | +19.52% |
| Operating margin (%) | 35.67% | 31.31% | — | — |
| Interest | ₹3 cr | ₹3 cr | -4.70% | +0.33% |
| Depreciation | ₹11 cr | ₹11 cr | -1.11% | +13.66% |
| Profit before tax | ₹85 cr | ₹75 cr | +14.67% | +6.92% |
| Tax | ₹19 cr | ₹18 cr | +9.74% | +22.97% |
| Net profit | ₹66 cr | ₹57 cr | +16.21% | +2.92% |
| EPS (₹) | ₹12.30 | ₹10.69 | +15.06% | -2.07% |
Operating margin of 35.67% compares with a Consumer Discretionary sector median of 12.50% across 73 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The FY2023-FY2027 growth story shows a 22% revenue CAGR.
- The FY2023-FY2027 growth story shows a 66% EBITDA CAGR.
- The FY2023-FY2027 growth story shows a 54% PAT CAGR.
- The company states an ambition to become an always-on intelligence and action platform for the automotive ecosystem.
What to watch
- Whether operating margin holds above 35.67% after the 4.36-percentage-point QoQ rebound.
- Whether other income remains close to its 27.07% share of pre-tax profit.
- Whether the tax rate stays below the current 22.81% level.