Similarly, for used motor cars under the same category, the tariff rate has been lowered from 125% to 70%, with an effective rate of 70% plus 67.5% AIDC.
^ this is +ve for Cartrade i think.
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Summary form Q32025 results PPT and transcript. Please feel free to suggest views/edits.
Not sure what shall be fair PE and need support & advice form members/experts
Revenue and profits:
- Q3 revenues: **Rs. 193 crores
- Profit after tax: **Rs. 46 crores, For the nine months of the year:
- Revenue surged by 32%.
- EBITDA grew by 100%.
- Profit after tax zoomed to Rs. 99 crores.
- Q3 versus Q2 profit soared sharply by 48%.
Growth drivers
- Consumer group (CarWale and BikeWale): Revenue increased 38% year-on-year, resulting in a profit after tax growth of 172%. Achieved a 35% margin.
- Remarketing business: Delivered 28% growth in revenue and 178% profit after tax growth.
- OLX: Continuous growth with an 80% surge in profits.
Additional points
- Market Position- #1 Automotive Platform", “#1 Used Classified Platform”, and number one vehicle auction platform in the country. Used car market is likely to grow as the car penetration increases (my view)
- Traffic: 79 million monthly active unique visitors across platforms. More than 150 million customers per year across CarWale, BikeWale, and OLX India. 95% of users come organically.
- Auction volume went up to a rate of 1.5 million vehicles a year
Disc: Still tracking
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Growth Drivers Here are the key growth catalysts, as per the report: OLX India Acquisition: This has significantly boosted the company’s horizontal reach across 12 non-auto categories, including furniture and real estate. SAMIL Auctions: Offers counter-cyclical benefits, capitalising on asset repossessions.
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PPT MAY 25 CARTRADE.pdf (1.1 MB)
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27%
CAR TRADE:
OLX projects that Q2 FY26 will deliver a strong revenue growth of approx. 15% Y-o-Y,
translating into its highest ever Revenues and Profits and cementing its position as India’s
leading destination for buying and selling used cars and products.
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It’s clearly evident from the traffic surge that CarTrade is set to benefit significantly. Brokerages will have to upgrade their ratings once they realize their earlier mistake
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CarTrade declares super strong set of numbers for Q2.
Key Highlights – Q2FY26 (Consolidated):
• Revenue of ₹222.14 crores in Q2FY26, resulting in YoY growth of 29%.
• EBITDA of ₹63.60 crores in Q2FY26, resulting in YoY growth of 94%
• Profit before tax for the quarter is at ₹79.93 crores, resulting in YoY growth of 115%.
• Profit after tax for the quarter is at ₹64.08 crores, resulting in YoY growth of 109%.
Key Highlights – H1FY26 (Consolidated):
• Revenue of ₹420.64 crores in H1FY26, resulting in YoY growth of 28%.
• EBITDA of ₹107.10 crores in H1FY26, resulting in YoY growth of 96%
• Profit before tax for the H1FY26 is at ₹136.84 crores, resulting in YoY growth of 122%.
• Profit after tax for the H1FY26 is at ₹111.14 crores, resulting in YoY growth of 107%.
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Cartrade Q3 Results & Concall Update
(All growth numbers YoY unless mentioned otherwise)
Headline Performance
1. Revenue Growth ~19%
2. ROE Improved to 10%
3. EBITDA Growth ~56%
4. OPM ~37% vs 33% QoQ
5. PAT Growth ~35% (includes exceptional item impact of ~6 cr)
Consumer Group
1. Revenue Growth ~27%
2. EBITDA Margins ~43%
3. Growth rate expected to sustain in future.
Remarketing Business
1. Revenue Growth ~12%
2. EBITDA Margins ~30%
3. Remarketing business dragged down overall revenue growth.
4. The growth was slow due to price reduction of new cars, while the reduction in price of used cars lagged behind. But it is now normalising. Q4 expected to be better than Q3.
OLX
1. Revenue Growth ~18%
2. EBITDA Margins ~37%
3. Costs to be stable.
4. Growth rate improvement expected due to launch of Elite buyers program in last quarter. Good traction seen in last 30-40 days.
5. OLX verified to be launched in a few weeks. Big business expected, but no specific guidance as of now.
Other Concall Points
1. Management is optimistic about the ongoing quarter (Q4FY26) and the upcoming ones.
2. Management expects further margin improvement even from current high level of 37%
3. The current ~1100 cr. cash on balance sheet is expected to be used in acquisitions to fuel inorganic growth.
Key things to track in upcoming quarters
1. Remarketing business growth recovery
2. Traction in elite buyers program for OLX
3. Potential Slowdown In consumer business
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Cartrade tech announced yet another quarter of good results .
What stands out for me is the continuous expansion of the operating margins quarter on quarter .
- As per the management ,the operating margins will continue to grow from the current quarter 37% further due to operating leverage being played out. The management does not expect any further large incremental cost increase ,hence most of the incremental revenues should flow directly to the PBT .
- This quarter (Q3) ,all the 3 verticals have grown topline with non linear growth in operating profit and PAT due to the aforesaid operating leverage being played out. While Consumer , Remarketing and OLX have grew revenues at 27%, 12% and 18% respectively , they have growth EBITDA at 55%, 47% and 70% respectively.
- Global peers like Mobiles.de and Craigslist are operating at an OPM of c. 65%+ , so there seems to be a long runway ahead. Vinay Sanghi was alluding in the same direction.
- Their Consumer business is essentially a duopoly with Carwale/Bike wale and Carsdekho while their classifieds business is essentially a monopoly (OLX).
Disclosure : Invested in personal accounts
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Yes - Margins are increasing, but the revenue growth has slowed down quite a bit. We can always argue that the base has gone up etc etc. but for a high PE, revenue growth has to be higher too.
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Adjusted EBITDA for Q3 is 100crs (proxy for cash generation) as per concall. If we annualize it, this comes to 400cr CFO, even if I discount it to 300cr - its trading at 40x Mcap/FCF (Capex is low for business) which seems quite reasonable for a monopoly business with tailwinds.
Todays price action is suprising considering such strong results.
Anyone has a view on the business wrt valuations?
Market fears, after Anthropic AI tools development, that traffic on Cartrade verticals shall be disrupted by AI tools in near future. Management feels that with their proprietary data which is not available on LLM, they don’t foresee any disruption. In few days market should discount the fear and price up trend should resume .
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Any new development that has caused back to back 8-10pc declines from yesterday
Disc: Not invested. Booked profits at 3000, looking to add again
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in Concall, management said multiple times that they are betting big on Elite Buyer program on OLX. Subscrpiption model. Good to keep an eye on how this is received. Expects it to be a “very large revenue opportunity” and “flagship revenue earner.”
EBITDA margin jumped significantly to 37%% from 28% last year. This growth is not stopping or slowing for several quarters now, unlike top line growth that is seeing a slowdown (after the peak in March 2024). Platform based leverage play is really showing.
No guidance was given. Only said that last quarter will be good.
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Stock is seeing exit of some big players and shares being added by retail.
DIIs and FIIs are both reducing - even today close to 3% equity changed hands.
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The Company is rolling out AI agents across platforms to enhance transaction efficiency, improve customer outcomes, and deepen engagement across customer segments.
AI is the in thing and Company seems to be wanting to fully capitalise on the same.
It would be interesting to see how these agents help the Company and what kind of outcomes these would lead to.
As of now, personally its very difficult to guess the impact of this implementation.
Personally, I feel the fall for CarTrade was unwarranted due to AI fears, and believe they should be able to maintain leadership in their niche. If you see valuations, they are quite mouth-watering after current fall.
In 9m FY26, they have FCFs of around 190cr, translating to 250cr of FCF for FY26. At current enterprise value of ~9k crore, its valued at 35 times FCF. Compare it to any other platform or new age companies, this is a steal
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