India’s leading B2B ecommerce platform, IndiaMART InterMESH, has reported strong year-on-year (YoY) growth in its financial performance for the first quarter of FY26, even as it witnessed a sequential dip in net profit. The company’s consolidated net profit surged by 35% YoY to INR 153.5 crore, up from INR 114 crore in the same quarter last year.
However, on a quarter-on-quarter (QoQ) basis, IndiaMART experienced a decline in profitability, with net profit dropping 15% from INR 180.6 crore recorded in Q4 FY25. This sequential dip is attributed primarily to an increase in tax expenses and other operational costs.
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Strong Revenue Growth Drives Positive Outlook
IndiaMART’s operating revenue stood at INR 372.1 crore for Q1 FY26, showcasing robust growth of nearly 12% YoY, compared to INR 331.3 crore in the corresponding quarter of FY25. On a sequential basis, revenue rose 5%, up from INR 355.1 crore in the previous quarter.
This consistent growth in revenue highlights the platform’s continued expansion and deeper market penetration, supported by its large user base and comprehensive B2B services.
Tax Expense Surge Impacts Bottom Line
One of the notable metrics this quarter was the sharp increase in tax expenses, which jumped to INR 50.4 crore in Q1 FY26. This compares to INR 37.4 crore in Q1 FY25 and INR 37.5 crore in Q4 FY25. The higher tax outgo has been a key factor in the sequential decline in net profit, despite strong operational performance.
IndiaMART has not disclosed specific reasons for the increased tax burden, but it could be linked to changes in tax policies or a rise in taxable income due to improved core business performance.
IndiaMART’s Continued Market Leadership
IndiaMART remains a dominant player in India’s B2B ecommerce space, connecting millions of buyers and suppliers across various sectors. The platform benefits from a strong brand presence, high organic traffic, and a subscription-driven model that supports steady revenue inflows.
With small and medium enterprises (SMEs) increasingly adopting digital platforms for procurement and sales, IndiaMART is well-positioned to capture this growing market demand. Its focus on value-added services, technology upgrades, and customer engagement continues to fuel its top-line performance.
Future Outlook
Despite the quarter-on-quarter dip in net profit, IndiaMART’s YoY growth and consistent revenue gains signal strong business fundamentals. The company is expected to continue investing in product innovation, AI-driven matchmaking, and enhanced user experience to maintain its leadership in the Indian B2B ecommerce space.
As digital transformation in the SME sector gains momentum, IndiaMART is poised to benefit from rising demand for online B2B services, making it a stock to watch in the Indian tech-driven commerce sector.
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