Hold IndiaMart InterMesh: target of Rs 2580: ICICI Securities

ICICI Securities's research report on IndiaMart InterMesh

Management dialled up ad spends, targeting buyers on the platform. This led to ~7% YoY increase in traffic and ~17% YoY growth in unique business enquiries. While we think this is a move in the right direction, the quality of these enquiries shall determine supplier experience and whether churn is contained as a result. Management envisages the impact of these interventions to be visible by Q3–Q4 of FY26. In Q1FY26, therefore, net subscriber addition remained subdued at ~1.5K (~30% lower than that in Q4FY25). In the interim, ARPU improvement remains the only driver of revenue growth, EBITDA growth is also likely to remain subdued given management guidance of lower margin (as they re-invest in ad spends).

Outlook

We maintain HOLD and revise our target price to INR 2,580 (from INR 2,445), based on 20x one-year forward EV/EBITDA multiple (FY27E).