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IndiaMART Q1 profit jumps to Rs 172.2 crore, sets up finance arm for SME lending
Revenue rises as B2B marketplace enters lending with new wholly owned finance subsidiary
MUMBAI: IndiaMART InterMESH has clicked all the right buttons this quarter, delivering strong earnings while laying the foundation for its next growth engine. The online B2B marketplace reported a sharp rise in consolidated net profit for the quarter ended June 30, 2026, while also approving the incorporation of a wholly owned subsidiary, IndiaMART Finance Limited, to expand into business lending.
The company posted a consolidated net profit of Rs 172.2 crore in Q1 FY27, a steep increase from Rs 50.2 crore in the previous quarter and Rs 153.5 crore in the corresponding quarter last year. The board approved the results and the new subsidiary during its meeting held on July 21, which commenced at 11 am and concluded at 3.15 pm.
IndiaMART’s consolidated total income rose to Rs 521.1 crore, driven by Rs 414.4 crore in revenue from operations and Rs 106.7 crore in other income. This compares with total income of Rs 370.4 crore in the preceding quarter, when other income had turned negative. Revenue from operations also improved from Rs 404.3 crore in Q4 FY26 and Rs 372.1 crore in Q1 FY26, reflecting steady growth in the company’s core marketplace business.
On the expenditure front, total expenses stood at Rs 274.8 crore, marginally lower than Rs 279.3 crore in the previous quarter despite higher revenue. Employee benefits remained the largest cost at Rs 174 crore, followed by Rs 93.9 crore in other operating expenses. Depreciation and amortisation amounted to Rs 6.4 crore, while finance costs remained modest at Rs 0.5 crore.
As a result, profit before tax climbed to Rs 231.7 crore, compared with Rs 78.4 crore in Q4 FY26 and Rs 203.9 crore in the year-ago period. Basic earnings per share improved to Rs 28.66, up from Rs 8.36 in the preceding quarter and Rs 25.59 a year earlier.
The company’s Web and Related Services business continued to be its primary growth driver, generating Rs 375.9 crore in external revenue and delivering a segment profit of Rs 149.2 crore. Meanwhile, the Accounting Software Services business contributed Rs 38.5 crore in revenue but reported a marginal segment loss of Rs 2.7 crore during the quarter. Total segment assets stood at Rs 4,862.4 crore, while liabilities were Rs 2,642.8 crore.
Alongside its financial performance, IndiaMART approved the incorporation of IndiaMART Finance Limited, a wholly owned subsidiary that will operate in the financial services sector. The new entity will focus on providing short-term working capital solutions to small and medium businesses on the IndiaMART platform, strengthening customer engagement while expanding the company’s ecosystem beyond marketplace services.
The subsidiary will be incorporated with an initial paid-up capital of Rs 5 lakh, comprising 50,000 equity shares with a face value of Rs 10 each. The entire capital will be subscribed in cash by IndiaMART, subject to the necessary regulatory approvals from the Ministry of Corporate Affairs.
IndiaMART also recognised a total share of loss of Rs 14.6 crore from its seven associate companies. This included Rs 12.78 crore from continuing associates and Rs 1.77 crore relating to IB MonotaRO Private Limited until May 29, 2026, when it ceased to be an associate.
With profits rising sharply, costs remaining under control and a new lending business set to take shape, IndiaMART is looking to deepen its relationship with SMEs while creating additional growth avenues beyond its core B2B marketplace.
