IndiaMART InterMesh , a leading B2B marketplace, has set its sights on accelerating growth in the latter half of fiscal year 2026, despite current challenges and increased investment in artificial intelligence (AI) technologies.

Growth Targets and Current Performance

IndiaMART is aiming for double-digit growth in standalone collections for the second half of FY26, a significant increase from its current growth rate. Here's a breakdown of the company's recent performance and future targets:

CEO Dinesh Agarwal attributes the current growth rate of 8-10% to slower net customer addition. However, the company remains optimistic about its Average Revenue Per User (ARPU) growth, projecting a 6-8% increase. This optimism is fueled by an improved platform experience, which has led to an increase in unique business inquiries and repeat customers.

AI Investments and Future Cost Reduction

IndiaMART is making significant strides in AI implementation to enhance its operations:

• Automation Target: The company aims to automate three crore monthly calls between buyers, sellers, and the platform.
• AI Applications:
  • Analyzing call transcripts
  • Improving product specifications through PDF analysis
• Current Impact: AI investments are presently increasing costs due to experimentation with multiple models.
• Future Outlook: CEO expects cost reduction benefits to materialize in 2-3 years.

Chinese B2B Competition and Partnerships

Addressing speculation about Chinese B2B competition, CEO Agarwal:

• Welcomed potential partnerships
• Denied rumors of joint ventures with Chinese players

Market Response

The market has responded positively to IndiaMART's growth plans and technological investments. The company's shares closed 3.76% higher at Rs 2,460.00 on the day of the announcement.

IndiaMART's strategic focus on AI implementation, coupled with its ambitious growth targets, signals the company's commitment to maintaining its competitive edge in the B2B marketplace sector. While the increased AI investments may impact short-term costs, the long-term benefits in operational efficiency and customer experience could potentially drive the company's growth in the coming years.

IndiaMART InterMESH Ltd , India's leading B2B marketplace, has reported a solid performance for the second quarter of fiscal year 2026, with notable growth in revenue and key operational metrics.

Financial Highlights

The company delivered a consolidated revenue of Rs 391.00 crores in Q2 FY26, marking a 12% year-on-year growth. Collections from customers grew 14% to Rs 406.00 crores, while deferred revenue increased 18% to Rs 1,750.00 crores.

Operational Performance

IndiaMART added 2,800 net paying suppliers during the quarter, bringing the total number of paying suppliers to 2.22 lakh. This figure excludes a one-time benefit of approximately 1,200 net additions due to simplification of the onboarding process for new silver paying subscribers.

Unique business inquiries reached 31 million, up 12% year-on-year, indicating strong user engagement on the platform.

Profitability

The company maintained healthy profitability with consolidated EBITDA standing at Rs 130.00 crores, representing a 33% margin. Net profit for the quarter was Rs 83.00 crores.

Key Metrics

Subsidiary Performance

Busy Infotech, a subsidiary of IndiaMART, reported Rs 38.00 crores in billing with 57% normalized growth and sold 12,000 new licenses during the quarter.

Financial Position

IndiaMART's cash and treasury balance stood at Rs 2,874.00 crores as of September 30, 2025, reflecting a strong financial position.

Management Commentary

Dinesh Chandra Agarwal, CEO of IndiaMART, commented on the results: "We continue to focus on improving the platform by creating a better user experience for both buyers and suppliers, improving how users engage and converse, delivering better customer servicing, and building a trusted platform. We are implementing a growing range of AI use cases, which is strengthening our platform and product offering."

Outlook

While the company did not provide specific forward-looking guidance, management emphasized their commitment to enhancing overall product experience and continuing to build growth momentum in the business.

The company's focus on quality and customer service, coupled with its strong financial position, positions IndiaMART well for future growth in the B2B marketplace sector.