CarTrade Tech , a leading player in India's auto-tech space, is reportedly in advanced stages of acquiring CarDekho (Girnar Software Pvt. Ltd.) in a deal valued at over $1.2 billion. This potential merger comes on the heels of CarTrade's impressive quarterly performance, signaling a transformative period for the auto-tech industry in India.

Acquisition Details

CarTrade Tech is set to acquire CarDekho in a cash-and-stock transaction. The deal, currently in the due diligence phase, is expected to be announced soon. This strategic move could reshape the competitive landscape of India's digital automobile marketplace.

CarTrade's Q2 Financial Highlights

CarTrade Tech has reported robust financial results for the second quarter:

The company maintains a debt-free status, showcasing strong financial health.

CarDekho's Financial Position

CarDekho's parent company has also demonstrated strong financial performance:

Strategic Implications

The potential merger would combine two complementary strengths in the auto-tech sector:

1. CarTrade's expertise in dealer auctions and B2B remarketing
2. CarDekho's strong presence in consumer listings and digital retail

This consolidation could create one of India's largest auto-tech entities, potentially offering a more comprehensive suite of services to consumers and businesses alike.

Market Impact

The deal, if finalized, may be one of the most significant in India's auto-tech sector. It could trigger further consolidation in the industry and intensify competition in the digital automobile marketplace.

As the due diligence process continues, market watchers and industry stakeholders will be keenly observing the developments of this potential game-changing acquisition in India's rapidly evolving auto-tech landscape.

CarTrade Tech Limited , India's leading multi-channel auto platform, has reported a stellar performance for the second quarter of fiscal year 2026, with profits soaring 109% year-on-year to INR 64 crores. The company's revenue grew by 29% to reach a record INR 222 crores, marking its best-ever quarterly performance.

Strong Performance Across Segments

The company's consumer group, which includes CarWale and BikeWale, achieved an impressive 37% revenue growth, resulting in an 82% increase in profits. The EBITDA margins for this segment expanded significantly, reaching 40%.

OLX India, part of the CarTrade Tech group, recorded its highest-ever revenue with a 17% growth and an astounding 213% jump in profits. The EBITDA margins for OLX reached 30%, demonstrating strong operational efficiency.

The remarketing business also showed robust growth, with revenue increasing by 23% and profits by 30%.

Key Metrics and Financial Highlights

CarTrade Tech's platforms, including CarWale, BikeWale, and OLX, collectively crossed 85 million monthly active users, with 95% of the traffic coming organically. The company maintains a strong physical presence with over 400 abSure and OLX outlets.

Cost Discipline and Operational Leverage

Despite the significant revenue growth of 29%, the company managed to keep cost escalation at just 8%, demonstrating strong operational leverage. This disciplined approach to costs has contributed significantly to the expansion of profit margins across all verticals.

Future Outlook and Initiatives

The company is focusing on leveraging artificial intelligence (AI) to enhance user experience and develop new products. CarTrade Tech is also exploring monetization opportunities for both sellers and buyers on its platforms, particularly through the recently launched Elite Buyer Program on OLX.

Vinay Sanghi, Chairman and Managing Director of CarTrade Tech, expressed optimism about the company's growth trajectory, stating, "We feel very optimistic about the growth for this quarter, coming quarter and the quarters after that at OLX."

With a strong cash position and continued focus on product innovation, CarTrade Tech appears well-positioned to capitalize on the growing digital automotive market in India.

Investors and market watchers will be keen to see if the company can maintain this growth momentum in the coming quarters, especially as it continues to expand its services and leverage its strong market position across various automotive-related segments.