CarTrade's Q4 margin eases, but operating profit jumps 55.19% YoY
Revenue grew 19.84% YoY as expenses rose 6.60%, while a lower 5.54% tax rate also lifted net profit.
Filed 07 May 2026, 11:37 IST · Cartrade Tech Ltd (CARTRADE)
Key takeaways
- Consolidated operating profit rose 55.19% YoY as revenue grew 19.84% while expenses increased 6.60%.
- Sequential momentum softened, with revenue down 3.11% and operating margin narrowing 2.05 percentage points to 35.27%.
- Net profit growth was helped by the tax rate falling 8.01 percentage points YoY, while other income contributed 23.48% of pre-tax profit.
Price around the results
Operating leverage drove the YoY profit jump
CarTrade Tech's consolidated revenue grew 19.84% YoY, while expenses rose only 6.60%, lifting operating margin by 8.04 percentage points. That gap drove a 55.19% increase in operating profit and a 53.65% rise in net profit. The improvement was partly offset by other income falling 11.73% YoY.
Q4 saw a sequential margin pullback
Revenue fell 3.11% QoQ while expenses were almost flat, up 0.05%, so operating margin narrowed 2.05 percentage points. Interest rose 8.44% and depreciation increased 16.42%, adding to the sequential decline in operating profit. Net profit still rose 15.17% QoQ because the tax rate dropped 15.58 percentage points to 5.54%.
Margin remains well above the sector median
The 35.27% operating margin was below Q3FY26's 37.32%, but it remained above the previous quarter's 32.88% and the 27.23% recorded a year earlier. This is not a third straight quarterly decline: margin rose through Q2FY26 and Q3FY26 before easing in Q4. It was 20.46 percentage points above the 14.81% median among 93 Consumer Discretionary peers that had reported.
Presentation highlights expansion beyond listings
The company said it sees online buying, financing, AI and brand as future opportunities, and described an AI-led experience for used goods. It also said its platforms host 63% of India's used-car listings and identified a Verified Product, Elite Buyer and Elite Seller programmes, and products for deeper partnerships as current initiatives. These statements extend the business focus beyond the quarter's listing-led operating performance.
The market reaction was within CarTrade's usual range
The stock rose 6.34% on the results day, with volume at 11.41 times the usual level. That move was modestly above the 5.81% median absolute move after its last eight results, when the stock rose on six occasions and fell on two. The gain extended to 8.17% on the next trading day before the 15-day return stood at -3.99%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹203 cr | ₹210 cr | -3.11% | +19.84% |
| Other income | ₹18 cr | ₹12 cr | +44.46% | -11.73% |
| Expenses | ₹131 cr | ₹131 cr | +0.05% | +6.60% |
| Operating profit | ₹72 cr | ₹78 cr | -8.43% | +55.19% |
| Operating margin (%) | 35.27% | 37.32% | — | — |
| Interest | ₹3 cr | ₹3 cr | +8.44% | +6.37% |
| Depreciation | ₹11 cr | ₹9 cr | +16.42% | +13.28% |
| Profit before tax | ₹75 cr | ₹78 cr | -3.83% | +40.63% |
| Tax | ₹4 cr | ₹16 cr | -74.80% | -42.60% |
| Net profit | ₹71 cr | ₹62 cr | +15.17% | +53.65% |
| EPS (₹) | ₹13.50 | ₹11.70 | +15.38% | +53.06% |
Operating margin of 35.27% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +6.34% | +6.35% |
| Next session | +8.17% | — |
| 5 sessions | +1.61% | +4.25% |
| 15 sessions | -3.99% | — |
| 30 sessions | +41.57% | — |
Volume on the results session was 11.41× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New products
- The company launched a first-of-its-kind Verified Product.
New initiatives
- The company identifies online buying, financing, AI and brand as future opportunities.
- The company describes an AI-led experience for used goods.
- The company has an Elite Buyer and Elite Seller Program.
- The company is building products for deep partnerships.
Competition
- The company says it is the number-one destination for new cars and bikes online.
- The company says its platforms host 63% of all used-car listings in India.
What to watch
- Whether operating margin holds above 35.27% after the 2.05-percentage-point sequential decline.
- Whether revenue resumes growth after the 3.11% QoQ fall.
- Whether other income's 23.48% share of pre-tax profit reduces and the tax rate remains near 5.54%.