IndiaMART InterMESH Ltd , India's leading B2B marketplace, has reported a solid performance for the first quarter of fiscal year 2026, with notable growth in revenue and customer collections. The company's strategic focus on enhancing its digital presence and improving user experience has yielded positive results.

Financial Highlights

IndiaMART delivered a consolidated revenue of Rs 372.00 crores in Q1 FY26, representing a 12% year-on-year growth. Collections from customers grew by an impressive 17% to Rs 430.00 crores, while deferred revenue increased by 17-18% to Rs 1,735.00 crores.

Operational Performance

The company reported 29 million unique business enquiries, up 17% year-on-year, indicating strong user engagement. The total number of paying suppliers stood at 218,000, with net paying subscriber additions of 1,500 in the quarter.

Digital Marketing Initiatives

In a significant move, IndiaMART increased its digital marketing spend to Rs 5.00-6.00 crores from Rs 1.00 crore in the previous quarter. This investment is part of the company's performance marketing experiments on YouTube and Meta platforms, aimed at enhancing its online presence and attracting more users.

Profitability

The company maintained strong profitability metrics:

IndiaMART's financial position remains robust, with a cash and treasury balance of Rs 2,762.00 crores.

Customer Segments and Retention

Management indicated that churn remains elevated for silver customers but stable for gold and platinum customers. These premium segments constitute approximately 50% of the customer base and contribute about 75% of the company's revenue, showing strong upsell and retention rates.

Future Focus

IndiaMART plans to continue its digital marketing investments at Rs 6.00-10.00 crores per quarter. The company is also focusing on product improvements and AI implementation to enhance its offerings and streamline business operations on the platform.

Investor Relations

The company recently held analyst and institutional investor meetings, demonstrating its commitment to transparency and stakeholder engagement. As per the LODR data, IndiaMART conducted one-on-one meetings with Capital Group and SVAN Investment on July 23, 2025, discussing the company's performance and strategies.

IndiaMART's Q1 FY26 results reflect its strong market position and strategic initiatives in the B2B e-commerce space. The company's focus on digital marketing, coupled with its efforts to improve user experience and implement AI technologies, positions it well for continued growth in the evolving digital marketplace landscape.

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.