Indiamart's 37.14% margin stands out as enquiries fall 14% YoY
Management reported 27 million unique enquiries and 158 million replies and callbacks, while negative other income reduced profit conversion.
Filed 27 Oct 2026, 15:14 IST · Indiamart Intermesh Ltd (INDIAMART)
Key takeaways
- Consolidated operating margin was 37.14%, 24.86 percentage points above the Consumer Discretionary median across 66 reported peers.
- Management said unique business enquiries recorded a -14.00% YoY change to 27 million in Q2FY27, while replies and callbacks reached 158 million.
- Negative other income of Rs 22.9 cr weighed on the conversion of Rs 159.2 cr operating profit into Rs 90.8 cr consolidated net profit.
Price around the results
High margin, but weaker enquiry momentum
Indiamart posted a 37.14% consolidated operating margin in Q2FY27, well above the 12.28% median for the 66 Consumer Discretionary peers that have reported. The key operating concern was engagement at the top of the funnel: management said unique business enquiries fell 14.00% YoY to 27 million.
Negative other income diluted operating earnings
Other income was negative at Rs 22.9 cr, so operating profit of Rs 159.2 cr did not translate proportionately into profit before tax of Rs 129.4 cr. Consolidated net profit was Rs 90.8 cr after a 29.83% tax rate, making the quarter's profit conversion an important quality point.
Replies remained high despite fewer enquiries
The platform recorded 158 million replies and callbacks, indicating that activity beyond the initial enquiry count remained substantial. The company cited 58% repeat buyers and said 37% of suppliers are also buyers as competitive strengths.
Management outlines a broader services strategy
Management said it plans to improve engagement through commerce enablement, fintech and accounting, and business-enablement SaaS. It also said the company plans to focus on large and medium enterprises while continuing to expand its buyer and supplier network. The presentation said strategic investments span logistics, invoice discounting, transport management, fraud detection and related verticals.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹429 cr |
| Other income | ₹-23 cr |
| Expenses | ₹269 cr |
| Operating profit | ₹159 cr |
| Operating margin (%) | 37.14% |
| Interest | ₹1 cr |
| Depreciation | ₹6 cr |
| Profit before tax | ₹129 cr |
| Tax | ₹39 cr |
| Net profit | ₹91 cr |
| EPS (₹) | ₹15.09 |
Operating margin of 37.14% compares with a Consumer Discretionary sector median of 12.28% across 66 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.
This quarter
- The platform recorded 27 million unique business enquiries in Q2 FY27.
- The platform recorded 158 million replies and callbacks in Q2 FY27.
Guidance & outlook
- The strategic outlook is to improve engagement through commerce enablement, fintech and accounting, and business-enablement SaaS.
- The company plans to focus on large and medium enterprises.
- The company plans to keep expanding its buyer and supplier network.
New initiatives
- The company identifies commerce enablement and business enablement as part of its journey toward broader business services.
- The company has strategic investments spanning logistics, invoice discounting, transport management, fraud detection and related verticals.
Competition
- The company cites 58% repeat buyers and 37% of suppliers also being buyers as competitive strengths.
Problems & risks
- Unique business enquiries declined 14% year on year in Q2 FY27.
What to watch
- Whether unique business enquiries recover from 27 million after the -14.00% YoY change.
- Whether consolidated operating margin holds above 37.14%.
- Whether replies and callbacks remain near 158 million as the company expands its buyer and supplier network.