🌠IndiaMART InterMESH (IndiaMART) Report

IndiaMART is India’s largest online B2B product and services platform, set to sustain strong growth momentum as businesses are increasingly leveraging online channels for efficient procurement. A large and growing number of buyers and suppliers on the platform are driving up business enquiries, further increasing its attractiveness. The platform is unique as it enables two-way interactions—suppliers can post their listings and buyers too can post their request for quotations (RFQs). This helps IndiaMART generate high-quality leads for suppliers and gauge supplier behaviour, particularly their responsiveness. While the portal is free for buyers, it charges suppliers for premium listing of supplier storefronts and access to buyer RFQs. Over the years, it has widened listings to 98,000+ product categories spanning 77 lakh supplier storefronts and delivers 9.3 cr unique business enquiries from 19.4 cr registered buyers. The company has successfully acquired 100% ownership of Busy infotech in April 2022 for ₹500 cr. Busy is one of the largest accounting software companies in India. It was incorporated in 1997 and has a pan - Indian presence. It had revenues of ₹42.4 cr and a profit after tax of ₹11 cr in FY21. Apart from this, the company has also made few more acquisitions: (1) 26% stake for ₹104 cr in IB MonotaRO Private Limited, an ecommerce platform for business supplies (2) 16.5% stake for ₹91 cr in Fleetx Technologies Private Limited, a freight and fleet management software helping fleet operators and businesses digitize logistics operations through IoT based analytics services (3) 51% stake for ₹46 cr in Finlite Technologies Private Limited, which offers digital integration with mobile-based applications, analytical tools, and APIs for integration with ecommerce platforms over existing on-premise accounting software.

While most suppliers on their platform are registered for free, the company generate revenues by offering paid subscription packages to 2,14,000 suppliers i.e., less than 3% of their overall suppliers listed on the platform. Most of the subscription paying suppliers first subscribe to a Silver subscription package, and then subsequently upgraded to a higher value package and premium subscription of Gold & Platinum. All their subscription packages are offered on an annual or multi-year basis. Only the Silver package is offered on a monthly subscription. The subscription fees is collected upfront in advance, irrespective of the duration of their package. Higher tier packages provide better visibility and more RFQs to suppliers, leading to an increased number of business enquiries for them. Upgrades to premium subscription packages improve the ARPU (Average Revenue Per User) of their overall business which is ₹53,200 in FY24.

Revenue mix

#SALES #GROWTH

5 Year CAGR: 16.8%

In FY25, the revenue grew by ~16% YoY and stood at ₹1,388 cr. The growth was a combination of increase in the paying subscriber by 1.5% YoY to 2,17,000 and an improvement in ARPU by 14.5% YoY to ₹60,900 mainly due to gold & platinum customers. They continue to witness increased churn rate in the silver monthly and annual plans. However, they have increased focus on onboarding high quality businesses. Busy reported a revenue growth of 23% YoY to ₹66 cr. It sold ~33,000 licenses during FY25. In Q1 FY26, the revenue grew by ~12.3% YoY and stood at ₹372 cr. The growth was backed by increase in ARPU. Customer additions continued to be subdued. The deferred revenue stood at ₹1,735 cr. Busy reported a revenue growth of 58.1% YoY to ₹24.5 cr. It sold ~12,000 licenses during the quarter.

#EBITDA #GROWTH 5 Year CAGR: 25.4%


In FY25, EBITDA stood at ₹523 cr, a growth of 57.8% YoY. The company has reduced making growth investments in manpower, product & technology, sales & servicing. In Q1 FY26, EBITDA increased by 11.7% to ₹133.5 crore. The company has initiated performance marketing spends amounting to ~3% of revenue, with plans to continue this investment over the next three quarters. The initial response has been encouraging. Additionally, annual salary increments during the quarter led to a rise in employee benefit expenses

#PAT #GROWTH 5 Year CAGR: 30.2%

In FY25, PAT increased by ~64% YoY and stood at ₹550 cr. However, adjusting for the loss in share of associates the net profit grew by 79% to ₹600 cr. Other income increased by 29% YoY, on account of gain on investments. In Q1 FY26, PAT increased by 34.6% YoY to ₹153.5 cr, on account of increase in other income due to gain on investments. However, adjusting for the loss in share of associates the net profit grew by 33.9% to ₹167.6 cr.

#EBITDA #MARGIN

In FY25, EBITDA margin was ~37.7%, a significant expansion on a YoY basis due to organic operating leverage, certain cost optimisation initiatives, and saving due to lower customer acquisitions. With pickup in customer acquisitions, margins are expected to normalize. In Q1 FY26, the EBITDA margin contracted by 19 bps YoY to 35.9%, due to increase in advertisement spends.

#PAT #MARGIN

In FY25, PAT margins stood at 39.7% as compared to 28.1% in FY24. However, adjusting for the loss in share of associates the PAT margin stood at 43.2%. In Q1 FY26, PAT margins stood at 41.3% as compared to 34.4% in Q1 FY25. However, adjusting for the loss in share of associates the PAT margin stood at 45%.

#ROCE

Since the company was reporting an EBITDA loss over FY14-18, hence ROCE was negative. However, from FY19 the company was able to turn profitable on account of strict cost control (primarily in the advertisement expenses). ROCE for FY25 improved on a YoY basis and stood at 36.4%, on account of improvement in operating profits.

#ROE

The ROE for the period improved to ~28.6%. The company’s focus on sustaining the revenue growth by retaining customers and attracting more paying subscribers on board, along with various cost optimization drives would help aid the profitability. These would help the company remain a high ROE company as it is currently operating in the growth phase of a business cycle. A strong network effect has created circular value addition for the company. A higher number of buyers has translated into further inquiries, in turn leading to more suppliers and, hence, higher monetization.

#COMPANY #POTENTIAL

• According to Economic times, the global B2B e-commerce market held a market value of USD 8,523.3 billion in 2021 and is projected to reach USD 18,771.4 billion by the year 2027. The market is anticipated to grow at a CAGR of 14.1% from 2022 to 2027. As per Ken Research. The Indian B2B market is expected to grow at a CAGR of ~20% during the period FY19-FY25. • With less than 20% of India’s MSMEs using the Internet for business purposes, as against 54% in the US and 89% in China, there is substantial growth potential for the e-classifieds market. Online classifieds offer businesses a chance to connect with consumers at a low cost and get a measurable return on investment. • The government of India has planned to increase contribution of micro, small and medium enterprises to 50% of India’s GDP over the next five years (~29% currently). This is likely to act as a key catalyst for the industry. up payment transactions. • This coupled with growing internet adoption by MSMEs would push down the costs of communication, advertising, and rentals (since these small and medium businesses can set up digital storefronts rather than physical ones) and would also help to speed • The huge significance of digitalization was driven home like never before due to COVID-19 as the lockdowns hit businesses that could not be categorised as ‘essential services’. With work from home and social distancing measures possibly to stay in place, going online to increase their visibility is the need of the hour for SMEs. • The B2B platform under the classified space have a lower risk of disruption from the likes of Google (horizontal search engines). Success and sustainability of these platforms is dependent on higher organic searches.

#SECTOR #Outlook

• Paying subscribers retention remains a key monitorable: Increased business transaction in the post covid period is a huge opportunity for the company to grow its sales and increase the number of paid subscribers. The company is even looking forward to grab this opportunity and increase its investments to elevate its sales. • Indiamart has reduced investments towards customer acquisitions as they are not witnessing improvement in churn rates. Instead they are trying to find out which industry or geography is having an impact and trying to resolve that. • Going forward, further increase in employee base over the next year will be in line with the growth in the number of customers at IndiaMART as well as other businesses. They have commenced building an in-house sales team and plan to expand this over the next few quarters, to reduce their dependence on a completely outsourced sales function. • Management commentary: They are trying to acquire quality customers into their platform. The growth in FY25 is largely ARPU driven and customer acquisition continues to remain a challenge. They guided the collections growth to moderate to ~10% from the previous levels. They plan to hire couple of industry specific people to cater to a particular category. • Threat from Udaan: UDAAN was incorporated in 2016 and with its unique business model and services, it has acquired huge response from the market. With its efficient logistic services and other facilities, the company has won trust from its customers. However, the company is currently running under losses and has not been able to reduce its operating expenses. • Strategy towards Busy: The company successfully acquired 100% stake in Busy infotech for ₹500 cr. As of now, for a year or two, they would still continue to focus on growing Busy first before looking at these cross-sell opportunities for IndiaMART coming in from Busy. They would run this business at breakeven levels for some time.

IndiaMart InterMesh Ltd 2000-2325
Expected level 2900
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Balrampur Chini Mills Limited company details report

Balrampur Chini Mills Limited incorporated in 1975, is one of the largest integrated sugar companies in India. The allied businesses of the company comprise of manufacturing of downstream products like ethanol, power (co-generation), alcohol, molasses and bagasse. Its products include sugar, molasses, alcohol, ethanol, bagasse and power. It sells its products within India and export as per the government quota allocation. The company has identified sugar and distillery as its distinctive operating segments. The company presently has 10 integrated manufacturing units of sugar, ethanol and co-generation located in Eastern and Central Uttar Pradesh (India), having an aggregate sugarcane crushing capacity of 80,000 TCD (tons of cane per day), distillery capacity of 1,050 KLPD (kilolitres per day) and 175.7 MW (megawatt) saleable co-generation capacity. It has grown its capacity by well-planned capacity expansion projects and the acquisition of existing companies over recent years. The SS (sugar season) in India is from October to September and the ethanol supply season is from December to November.

Segment wise Revenue

Products wise revenue

#SALES #GROWTH 5 Year CAGR 5.5%

In FY25, net sales was ~₹5,415 cr, down by ~3% YoY. Revenue growth from the sugar segment grew by 4% YoY while revenue from the distillery segment degrew by 15% YoY. The revenue decline was primarily driven by lower ethanol production & sales due to regulatory restrictions and stagnant prices. Additionally, reduced sugar output owing to reduced cane availability and lower recovery rates contributed the decline in sales. In Q1 FY26, net sales was ~₹1,542 cr and it grew by 8.5% YoY. Revenue from sugar segment was ₹1,168 cr and it increased by 3% YoY while revenue from distillery segment grew by 9% YoY and stood at ₹461 cr. owing to higher volumes and better realization. During the quarter, the company crushed 21.78 lac quintals of sugarcane and it declined by ~66% YoY.

#EBITDA #GROWTH 5 Year CAGR 2.7%

In FY25, EBITDA stood at ₹704 cr, reflecting a 10.4% decline YoY. The company’s profit in the distillery segment was impacted due to rising input costs and stagnant realization rates while in the sugar segment they witnessed reduced sugarcane availability due to adverse weather conditions and crop disease. In Q1 FY26, EBITDA stood at ₹134 cr and it declined by 19.2% YoY owing to fall in sugar production and under absorption of fixed overhead due to the shortened season. During the quarter, the company produced 2.48 lac quintals of sugar as compared to 7.16 lac quintals of sugar in Q1 FY25.

#EBITDA #MARGIN

In FY25, EBITDA margin was 13%, contraction of 105 bps YoY. In Q1 FY26, EBITDA margin was 8.7%, contraction of 299 bps YoY.

#PAT #MARGIN

In FY25, PAT margin was 7.42%, contraction of 167 bps YoY. In Q1 FY26, PAT margin was 2.7%, contraction of 173 bps YoY.