Retail stock to buy today: A constituent of BSE 500, IndiaMART InterMESH Ltd., is in focus today as the brokerage firm, HDFC Securities, has maintained a buy call. The company reported its Q4 FY2026 results (ending March 31, 2026), posting consolidated revenue of Rs 404 Crore (up 14% YoY) and a Profit After Tax (PAT) of Rs 50.2 Crore. The company also recommended a total dividend of Rs 60 per share for the fiscal year. Here’s why the firm is bullish on the retail stock.
1. Silver-tier customer churn has remained elevated at around 5% for the past two years; average net additions of around 1,000 per quarter versus the historical average of over 5,000.
2. Unique business enquiries on the platform declined from around 31 million in Q2FY26 to around 27 million in Q4FY26.
3. Recent price hike added further pressure on net additions; growth now primarily driven by average revenue per user expansion.
4. Revenue growth projected at 11.3% in FY27 and 12.5% in FY28; EBITDA margins expected to moderate to around 33% over the same period.
5. Multiple churn-reduction initiatives implemented, but no material improvement achieved yet
AI agent deployed with over 100,000 autonomous conversations daily; 20% higher conversions and 15% lower costs achieved.
6. If silver churn reduces, annual net additions could recover to 12-15,000, boosting revenue by 2-5% and EBITDA by 4-8%.
7. Valued at 26x FY28 estimated EPS on a discounted cashflow basis.
IndiaMART InterMESH Limited announced its financial results for the full year and fourth quarter ending March 31, 2026, on April 30. The company reported consolidated Revenue from Operations of Rs 404 Crore as compared to Rs 355 Crore in the corresponding quarter of last year, representing a growth of 14%. This includes IndiaMART Standalone Revenue of Rs 368 Crore, representing YoY growth of 10% and Busy Infotech Revenue of Rs 34 Crore.
Collections from customers grew to Rs 595 Crore for the quarter, representing YoY growth of 10%, primarily comprising IndiaMART Standalone Collections of Rs 546 Crore, representing YoY growth of 8% and Busy Infotech Collections of Rs 45 Crore.
Deferred Revenue as on March 31, 2026, increased to Rs. 1,965 Crore, representing a YoY growth of 17%. This primarily includes IndiaMART Standalone Deferred Revenue of Rs 1,832 Crore and Busy Infotech Deferred Revenue of Rs 124 Crore.
Net Profit for the quarter was Rs 50 Crore. Cash Flow from Operations for the quarter was Rs 290 Crore. Cash and Investments balance stood at Rs. 3,280 Crore as on March 31, 2026.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
