Broker’s Call: IndiaMART InterMESH (Hold)

Target: ₹2,060

CMP: ₹1,819.05

In Q1FY27, IndiaMART InterMESH reported revenue of ₹414 crore, up 11.4 per cent year on year. EBIT stood at ₹140 crore, up 10.7 per cent, primarily due to lower customer acquisition spending. Net income came in at ₹172 crore, up 12.2 per cent, primarily driven by mark-to-market gains on the company’s treasury portfolio.

The management has intensified its focus on improving customer retention. It noted that acquiring low-quality, low-intent customers artificially inflates customer acquisition costs (CAC) while reducing lifetime value (LTV). To enhance retention, the company is focusing on better cataloguing, improved curation and integrating credit offerings into transactions.

The management views the rise of LLMs and AI as a “double-edged sword” with respect to web traffic and data scraping. To navigate this evolving landscape, the company is adopting a balanced approach rather than taking extreme measures, avoiding strict blocking while continuing to manage free access effectively.

The management continues to strengthen its position as a leading marketplace for MSMEs, and the key initiatives are likely to support higher revenue growth and sustain margins in the long run. However, a higher churn rate in the silver subscription, decline in new inquiries, and continued loss in the subsidiary remain key concerns to watch out for. Therefore, we maintain our HOLD rating on the stock and value the stock at 17x FY28E earnings, arriving at a TP of ₹2,060/share.

Published on July 22, 2026