Riding high on strong December-quarter earnings, IndiaMART is set to increase its investments in technology over the next two years, with a focus on AI-driven automation and platform upgrades. This strategic move aims to enhance operational efficiency, improve supplier relations, and convert leads into customers, according to Dinesh Agarwal, founder and CEO of IndiaMART.
Agarwal stated that the company began investing heavily in automation tools at the beginning of fiscal year 2025 and intends to maintain this momentum. While he did not disclose specific investment figures, the focus on technology underscores IndiaMART's commitment to long-term growth and its ability to adapt to the evolving e-commerce landscape.
The announcement follows IndiaMART's impressive Q3 FY26 results, which saw a 13% year-on-year increase in consolidated revenue from operations, reaching ₹402 crore. The company's net profit surged by 56% year-on-year to ₹188 crore, demonstrating successful efforts in optimizing operational efficiencies and managing costs effectively. Customer collections also experienced healthy growth, rising 17% year-on-year to ₹426 crore, indicating strong business momentum and effective client engagement. Deferred revenue climbed to ₹1,775 crore, a 19% year-on-year increase, showcasing strong revenue visibility.
IndiaMART's standalone revenue increased to ₹368 crore, up 9% year-on-year, driven mainly by better realization from paying suppliers. Standalone net profit stood at ₹206 crore for the quarter, while standalone deferred revenue rose 16% year-on-year to ₹1,654 crore, reflecting continued customer traction. Busy Infotech, a wholly-owned subsidiary specializing in business accounting software, reported a revenue of ₹32 crore, a substantial 50% year-on-year increase.
The company's strategic priorities include leveraging AI-driven tools to improve operational efficiency and supplier retention. IndiaMART is also exploring quick-commerce partnerships and increasing efforts to deepen its footprint in southern India, even as competition intensifies.
Brokerages have reacted positively to IndiaMART's Q3 performance, with JM Financial noting that the company's consolidated collections grew 17% year-on-year, slightly ahead of their estimates. They also highlighted Busy Infotech as a key growth driver.
Dinesh Agarwal, a leading internet entrepreneur and angel investor, founded IndiaMART in 1996 with the vision of creating a platform that simplifies trade for businesses. Since then, IndiaMART has become India's largest online B2B marketplace, connecting suppliers and buyers across various product categories and geographies. As of 2024, Agarwal's net worth is estimated to exceed ₹5,000 crore, primarily from his stake in IndiaMART.
