IndiaMART shares hit 52-week low despite rise in Q3 net profit and revenue; here’s why

The stock opened sharply lower by 8% and dropped further to hit a fresh 52-week low of ₹2,065.4 per share, down 10% from the previous closing price on the NSE. More than 17.5 lakh shares of the company changed hands on the bourse.

IndiaMART shares later pared some of the losses to trade 8.94% lower at ₹2,089 apiece on the NSE at 11:20 am.

IndiaMART reported a 36% rise in consolidated net profit to ₹125 crore for the October-December period against ₹92 crore in the year-ago period. Sequentially, net profit declined by 1.5% compared to ₹127 crore in the September quarter.

The company’s revenue from operations also saw strong growth, rising 16% YoY to ₹354.3 crore. The revenue stood at ₹305.3 crore in Q3 of the previous financial year. On a sequential basis, revenue rose 2% QoQ.

Despite healthy revenue growth in the December quarter, experts flagged elevated churn in the silver category and expressed concerns over muted paid customer addition. During the quarter, the company lost 3,715 paying suppliers.

The company in a statement, said that YoY revenue growth was primarily driven by improvement in realisation from paying suppliers.

Collections from customers grew to ₹341 crore for the quarter, and Deferred Revenue as of December 31, 2024, increased to ₹1,430 crore, reflecting a 16% YoY growth.

“IndiaMART registered Unique business enquiries of 27 million in Q3FY25, representing a YoY growth of 17%. Supplier storefronts grew to 8.2 million, an increase of 5% YoY, and paying suppliers at the end of the quarter were 214K,” the company said.

“We continue to focus on onboarding quality suppliers, improving matchmaking relevancy, and enhancing the overall user experience on our platform. We are confident in the strength of our business model and our unique position to capitalise on the increasing digital adoption by businesses,” Dinesh Agarwal, Chief Executive Officer, said.