IndiaMART InterMESH , a leading B2B e-commerce platform in India, has set its sights on achieving double-digit growth in the current financial year while aiming for a long-term EBITDA margin of 33%. This strategic move comes as the company shifts its focus towards improving customer retention, particularly in the Silver category.

Financial Performance and Growth Strategy

IndiaMART reported strong financial results for the first quarter, with consolidated net profit rising by 34.65% year-on-year to Rs 153.50 crore. The company's total income also saw a significant increase of 20.8%, reaching Rs 464.50 crore.

CEO Dinesh Agarwal explained that the company's current EBITDA margins of 38-39% are higher than the long-term target due to reduced sales investments. This reduction was primarily caused by high churn rates in the Silver customer category.

Customer Retention and Revenue Distribution

The company is now prioritizing retention improvements for Silver customers through product enhancements and better training, rather than increasing sales expenditure. This strategy aims to address the churn issue while maintaining a healthy financial position.

IndiaMART's customer base shows an interesting revenue distribution:

This distribution highlights the importance of higher-tier customers to the company's revenue stream.

Advertising and Marketing Strategy

Despite the focus on customer retention, IndiaMART plans to maintain its advertising spending at Rs 6-10 crore per quarter for the next two quarters. This consistent investment in marketing suggests the company's commitment to balancing growth with profitability.

Investor Relations

In a recent disclosure to the stock exchanges, IndiaMART announced an upcoming one-on-one call with Generation Investment Management LLP on July 21, 2025. This engagement with institutional investors demonstrates the company's commitment to transparent communication with its stakeholders.

Market Response

Following the announcement of these strategic plans, IndiaMART's shares closed 1.87% lower at Rs 2,603.00. This slight dip may reflect the market's initial reaction to the company's long-term margin targets and strategic shift towards customer retention.

As IndiaMART InterMESH navigates its growth strategy, balancing customer retention with profitability targets, investors and market watchers will be keen to observe how these initiatives impact the company's performance in the coming quarters.

IndiaMART InterMesh , a leading B2B e-commerce platform, has reported strong financial results for the first quarter, showcasing robust growth across key metrics.

Financial Highlights

IndiaMART's standalone net profit soared by 35% year-on-year, reaching Rs 154.00 crore compared to Rs 114.00 crore in the same quarter of the previous year. The company's consolidated revenue from operations grew by 12% to Rs 372.00 crore, with IndiaMART's standalone revenue contributing Rs 346.00 crore and its subsidiary, Busy Infotech, adding Rs 25.00 crore to the top line.

Key Performance Indicators

Operational Performance

IndiaMART's operational metrics showed significant improvement, with a 17% year-on-year increase in unique business enquiries, totaling 29 million for the quarter. The company also successfully expanded its paying supplier base, adding 1,500 net new subscribers and bringing the total to 2,18,000.

Financial Position

The company's financial position remains robust, with cash and investments amounting to Rs 2,762.00 crore, providing a solid foundation for future growth and investments.

Analyst Perspective

HDFC Securities has maintained an 'add' rating on IndiaMART InterMESH with a target price of Rs 2,600.00. The brokerage highlighted the company's strong quarterly performance, which was supported by improvements in Average Revenue Per User (ARPU) and higher cash collections.

Margin Impact and Technological Integration

While the company saw an impact on margins due to increased digital marketing spend, it's worth noting that gross margins improved. This improvement is attributed to the integration of Generative AI (GenAI) and automation initiatives, showcasing IndiaMART's commitment to leveraging cutting-edge technologies to enhance operational efficiency.

IndiaMART's Q1 results demonstrate the company's ability to drive growth and profitability in the competitive B2B e-commerce space. With strong financial metrics and a focus on technological advancements, the company appears well-positioned to capitalize on the growing digital transformation trend in the Indian business landscape.