Are Indiamart Intermesh Ltd latest results good or bad?

1 hour ago
share
Share Via
Indiamart Intermesh Ltd's latest results show strong profit growth of 127.69% quarter-on-quarter, but modest net sales growth of 2.71% and declining operating margins raise concerns about sustainability and operational challenges in the competitive B2B marketplace.
Indiamart Intermesh Ltd's latest financial results for the quarter ended December 2025 present a complex picture. The company reported a consolidated net profit of ₹188.30 crores, reflecting a significant quarter-on-quarter growth of 127.69% compared to the previous quarter's decline. However, this impressive profit growth is accompanied by a more modest net sales increase of 2.71% quarter-on-quarter, down from 5.08% in the prior quarter, indicating potential challenges in sustaining customer acquisition and subscription renewals.

The operating margin, excluding other income, stood at 33.42%, which shows a contraction of 561 basis points year-on-year, highlighting pressures on profitability primarily driven by rising employee costs that outpaced revenue growth. The profit after tax margin of 46.89% appears inflated due to a substantial contribution from non-operating income, raising concerns about the sustainability of earnings derived from core business operations.

Despite the strong cash generation and zero long-term debt, the company is facing operational challenges, including margin compression and a deceleration in revenue growth, which may signal structural issues in the competitive B2B marketplace. The company has experienced an adjustment in its evaluation, reflecting these operational trends and market conditions.

Overall, while Indiamart Intermesh Ltd has demonstrated strong profit growth, the underlying operational metrics suggest caution due to potential headwinds in maintaining revenue momentum and profitability.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News