Nalanda India Equity Fund Limited has increased its shareholding in Indiamart Intermesh Limited to 7.71% following an acquisition of 423,115 shares. The transaction, executed via the exchange on July 21, 2026, was disclosed to the stock exchanges in compliance with regulatory requirements. The acquisition raises the acquirer's stake from a previous 7.67% holding.

The disclosure was submitted under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The acquirer confirmed that it does not belong to the promoter or promoter group of the target company. The shares of Indiamart Intermesh Limited are listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Holding Details

The acquisition involved the purchase of shares carrying voting rights. Prior to the transaction, Nalanda India Equity Fund Limited held 4,612,929 shares, representing 7.67% of the total share capital. Following the purchase, the total holding increased to 4,636,599 shares.

Transaction Information

The trade date for the acquisition was recorded as July 21, 2026, with a settlement date of July 22, 2026. The total equity share capital of Indiamart Intermesh Limited before the purchase was reported as 601,431,480 shares. The mode of sale was specified as an exchange transaction. The disclosure was signed by an authorised signatory from Mauritius on July 22, 2026.

IndiaMART InterMESH reported its audited consolidated and standalone financial results for Q1 FY27 (quarter ended June 30, 2026), posting a consolidated net profit of ₹172 crore, a 12.2% increase from the same period last year. Revenue from operations for the quarter stood at ₹414 crore, driven by growth across its web and related services segment. The company's cash and investments balance stood at ₹3,553 crore as on June 30, 2026, while deferred revenue increased to ₹2,014 crore.

Q1 FY27 Financial Highlights

The company's consolidated EBITDA for the quarter was ₹146 crore, rising from ₹133 crore in the corresponding period of the previous year. The EBITDA margin came in at 35% versus 35.9% year-on-year. Basic earnings per share (EPS) for the quarter were reported at ₹28.66 (not annualised). The statutory auditors, B S R & Co. LLP, expressed an unmodified opinion on the results. Cash flow from operations for the quarter was ₹163 crore, representing 35% of collections.

Standalone Performance

On a standalone basis, IndiaMART InterMESH reported a net profit of ₹176 crore for Q1 FY27, up from ₹166 crore in the prior year. Revenue from operations stood at ₹376 crore, compared to ₹346 crore in Q1 FY26. Total income for the quarter increased to ₹464 crore. The standalone results were also reviewed and recommended by the Audit Committee on July 20, 2026, and approved by the Board on July 21, 2026. Standalone deferred revenue was ₹1,858 crore, and cash flow from operations was ₹153 crore.

Operational Highlights

IndiaMART registered unique business enquiries of 26 million in Q1 FY27. Supplier Storefronts grew to 8.8 million, an increase of 5% year-on-year, and paying suppliers at the end of the quarter were 218,000. Collections from customers grew to ₹463 crore for the quarter, representing a year-on-year growth of 8%. The Annualised Revenue Per Paying Supplier was ₹69,000. The company noted that 1,852 paying suppliers declined this quarter.

Management Guidance: Concall Highlights

Following the quarterly results, management shared its strategic outlook across key business segments during the earnings concall. On the Busy Infotech front, management expects continued ARPU (Average Revenue Per User) expansion over the next three to five years, driven by price increases and value-added services — including a new product offering access across desktop, cloud, and mobile platforms. Management also aims to accelerate new license growth for Busy to 15-20% in the immediate one to two years, up from the current 10% growth rate, with an aspiration to achieve a 35-40% CAGR for Busy Infotech, building on its existing 27-30% CAGR trajectory.

On the advertising and inquiry side, management expects unique business inquiries to increase as advertising efforts expand beyond Google to platforms such as Facebook, Meta, Instagram, and YouTube. Regarding its investment portfolio, management clarified it does not intend to become a venture investing firm but will continue to evaluate new opportunities and conduct follow-on investments in existing portfolio companies, including Bizom, Fleetx, SuperProcure, and Aerchain.

Board Approves Wholly Owned Subsidiary

The Board of Directors approved the proposal for incorporation of a wholly owned subsidiary in India under the name "IndiaMART Finance Limited", subject to necessary approvals. The primary objective of the subsidiary is to strengthen trust, engagement, and retention of users on the platform by enabling business users to meet their short-term working capital requirements and financial needs. The initial paid-up share capital will be 50,000 equity shares of ₹10 each, amounting to ₹5,00,000, fully subscribed by IndiaMART InterMESH Limited.

Analyst View: Jefferies Maintains Underperform

Despite the profit beat, global brokerage Jefferies has maintained its Underperform rating on IndiaMART InterMESH with a target price of Rs 1,650. The brokerage acknowledged that the better-than-expected profit was driven by lower acquisition costs, but flagged the continued decline in paid subscribers as a key structural concern. Jefferies noted that the persistent drop in paying suppliers threatens the company's long-term network effects — a critical pillar of its business model — and has consequently revised its EPS estimates downward.