CarTrade Tech Limited , India's multi-category auto and used product platform, has announced a notable milestone in its profitability journey. The company has delivered more than 50% year-on-year EBITDA growth in each of the last 12 consecutive quarters, while expanding EBITDA margins from approximately 3% to 35% over the same period. This disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated May 11, 2026.

Three-Year Growth Story: FY 2023 to FY 2026

CarTrade Tech's performance over the three-year period from FY 2023 to FY 2026 reflects consistent profitable growth with strong operating leverage. The company has continued to invest in product, technology, and AI capabilities across the group during this period. The following table summarises the key financial and operational metrics highlighted by the company:

Capital Strength and Shareholder Value

Beyond earnings growth, CarTrade Tech has maintained a strong balance sheet over the period under review. The company reported cash reserves of ₹1,244 Cr and a zero-debt profile, with a cash balance change of approximately 300 Crores in FY26. Shareholder value metrics have also been notable, with a Share Price CAGR of 62% and an EPS CAGR of 86%, with earnings per share rising from 7 in FY23 to 47 in FY26. The company's profit after tax of ₹244 Cr positions it among India's most profitable listed digital platforms, as stated in the press release.

Management Commentary

Commenting on the milestone, Aneesh Bhandary, Executive Director and CFO, stated:

"We are proud to share this significant milestone in CarTrade Tech's journey. Delivering 12 consecutive quarters of over 50% EBITDA growth while expanding EBITDA margins from 3% to 35% reflects the strength, scalability and operating leverage of our platform-led business model. Over the last three years, the Company has delivered Revenue CAGR of 29%, EBITDA CAGR of 98% and PAT CAGR of 82%, while continuing to invest in AI, product and technology capabilities across the group."

Key Highlights

• 12 consecutive quarters of 50%+ year-on-year EBITDA growth
• EBITDA margin expansion from approximately 3% to 35%
• Structural margin improvement from 9% to 33%
• Zero debt with cash reserves of ₹1,244 Cr
• PAT of ₹244 Cr, among India's most profitable listed digital platforms
• Continued investments in AI, product, and technology capabilities

The company was founded in 2010 and listed in 2021. CarTrade Tech operates multiple brands including CarWale, BikeWale, Shriram, OLX, Adroit Auto, CarTrade Labs, Drive a Smile, CarTrade Ventures, and CarWale Absure.

CarTrade Tech has drawn divergent analyst views, with Kotak Securities and Citi arriving at contrasting ratings and target prices based on their respective assessments of the company's business segments, profitability trends, and growth trajectory.

Kotak Securities: Sell Rating with Raised Target

Kotak Securities has maintained its Sell rating on CarTrade Tech while raising its target price to ₹1860 from ₹1800. The brokerage acknowledges strong segment profitability and EBITDA margin expansion driven by operating leverage as positives. However, these are offset by slight growth moderation observed in both the standalone and OLX businesses. Kotak's stance reflects a focus on better monetization prospects, with the firm indicating it is awaiting a more attractive entry point before revising its recommendation.

Citi: Buy Rating with Revised Target

Citi has maintained its Buy rating on CarTrade Tech, though it has cut its target price to ₹2520 from ₹3150. The revision reflects near-term headwinds, primarily stemming from OLX underperformance that is weighing on immediate results. Despite this, Citi highlights several factors supporting the long-term outlook, including strong product cadence, resilient user traffic even amid AI-driven shifts in consumer behaviour, and promising monetization opportunities in the used vehicles segment. Sustained automotive market growth following GST cuts further underpins Citi's constructive longer-term view.

Analyst Ratings at a Glance

The following table summarises the current analyst positions on CarTrade Tech:

Diverging Perspectives on OLX and Core Business

Both brokerages identify OLX as a notable area of concern, with Kotak pointing to slight growth moderation and Citi flagging underperformance as a near-term drag. However, their overall conclusions diverge significantly. Kotak's Sell rating reflects caution around current valuations and the pace of monetization, while Citi's Buy rating is anchored in confidence over the company's longer-term structural drivers, including resilient traffic metrics and the broader automotive market tailwinds post GST cuts. The contrasting target prices—₹1860 versus ₹2520—underscore the differing weight each brokerage assigns to near-term challenges relative to long-term growth potential.