IndiaMART InterMESH Ltd

📊 IndiaMART FY2026: Revenue Up 9.3% to ₹14,428M, Net Profit Down 13.5% to ₹5,252M

- Net deferred tax liabilities increased to INR 412.11 million as of 31 March 2026 from INR 312.67 million in the previous year.

- Deferred tax expense recognized in profit and loss was INR 99.44 million for FY 2026, down from INR 150.73 million in FY 2025.

- Defined benefit gratuity obligation rose to INR 558.59 million in FY 2026, with a net liability of INR 351.24 million after plan assets.

- Employee stock-based compensation cost increased significantly to INR 347.36 million in FY 2026 from INR 168.87 million in FY 2025.

- Financial assets measured at fair value through profit or loss totaled INR 31,952.60 million, primarily in mutual funds, ETFs, and government securities.

- Revenue from operations grew to INR 14,428.03 million in FY 2026 from INR 13,200.58 million in FY 2025.

- Profit before tax was INR 6,944.61 million in FY 2026, lower than INR 7,729.66 million in the prior year.

- Key management personnel compensation totaled INR 202.98 million for FY 2026, up from INR 185.07 million in FY 2025.

- Investments in subsidiaries and associates included significant amounts in entities like Fleetx Technologies (INR 410 million) and IIL Digital (INR 85 million).

- The company maintained a capital structure with no borrowings, relying solely on equity, and emphasized liquidity and risk management.

- Purchased shares of Livekeeping Technologies Private Limited for INR 267.74 million, adjusting contractual investment rights of INR 27.18 million and derivative liability of INR 21.10 million.

- Invested INR 90 million in optionally convertible debentures (OCDs) of Livekeeping Technologies Private Limited.

- Recorded an additional impairment loss of INR 160 million for IB Monotaro Private Limited due to lower-than-projected performance.

- Increased equity ownership in Mobisy Technologies Private Limited from 31.33% to 32.53% with an investment of INR 51.30 million.

- Made additional investments in Fleetx Technologies Private Limited totaling INR 410.75 million, increasing equity ownership from 16.53% to 22.25%.

- Invested INR 60 million in compulsory convertible debentures (CCDs) of Tradezeal Online Private Limited.

- Invested INR 85 million in CCDs and OCDs of IIL Digital Private Limited.

- Recognized a fair value loss of INR 46.5 million on investment in Zimyo Consulting Private Limited.

- Revenue from operations increased to INR 14,428.03 million from INR 13,200.58 million in the previous year.

- Net profit for the year was INR 5,251.81 million, with basic earnings per share at INR 87.49.

- Total income tax expense for the year was INR 1,692.80 million, with an effective tax rate of 24.38%.

- Investments in mutual funds and exchange-traded funds increased to INR 19,809.24 million from INR 14,549.41 million.

- Total contract liabilities, including deferred revenue and advances from customers, stood at INR 18,317.86 million.

- Employee benefits expense totaled INR 6,344.12 million, including salaries, gratuity, and share-based payments.

- Other expenses, including impairment loss and corporate social responsibility, amounted to INR 2,881.60 million.

- Impairment calculations are based on valuation multiples, share prices, and fair value indicators, using detailed budgets and forecasts for each cash-generating unit (CGU) over a five-year period.

- For periods beyond five years, a long-term growth rate is applied, not exceeding the average growth rate for relevant products, industries, or countries.

- Impairment losses are recognized in the profit and loss statement, and depreciation is adjusted post-impairment over the asset's remaining useful life.

- Current income tax is measured using enacted tax rates at the reporting date, with provisions established for uncertain tax positions.

- Deferred tax is recognized on temporary differences, with assets assessed for recoverability based on probable future taxable profit.

- Provisions are recognized for present obligations from past events, with reimbursements treated as separate assets if virtually certain.

- Contingent liabilities are disclosed but not recognized unless an outflow of resources is probable.

- Employee benefits include defined contribution plans like provident fund and defined benefit plans like gratuity, measured using actuarial valuations.

- Share-based payments, such as ESOP and SAR, are equity-settled and measured at fair value at grant date, recognized over the vesting period.

- Financial instruments are classified into categories like amortized cost, FVTOCI, or FVTPL, with impairment based on expected credit loss (ECL) models.

- Property, plant, and equipment include categories like computers, office equipment, and motor vehicles, with net carrying values provided for recent years.

- Right-of-use assets for leases, such as buildings, are recognized with details on additions, disposals, and net carrying values.

- Investments in subsidiaries and associates include equity shares, convertible instruments, and impairment allowances, with significant changes noted.

- Auditor B S R & Co. LLP confirmed no non-cash transactions with directors, making Section 192 of the Companies Act not applicable.

- The company is not required to register under Section 45-IA of the RBI Act, 1934, and is not a Core Investment Company (CIC).

- No cash losses incurred in the current or preceding financial year, and no resignation of statutory auditors occurred.

- Auditor expressed no material uncertainty about the company's ability to meet liabilities within one year from the balance sheet date.

- No unspent amount under Section 135 of the Companies Act for corporate social responsibility projects.

- Auditor found adequate internal financial controls operating effectively as of 31 March 2026.

- Total revenue from operations increased to INR 14,428.03 million in FY26 from INR 13,200.58 million in FY25.

- Net profit decreased to INR 5,251.81 million in FY26 from INR 6,072.24 million in FY25.

- Total assets grew to INR 46,018.37 million in FY26 from INR 40,896.00 million in FY25.

- Equity increased to INR 25,417.13 million in FY26 from INR 22,761.65 million in FY25.

- Final dividend paid was INR 50 per share for FY25, totaling INR 3,000.49 million.

- Cash and cash equivalents rose to INR 770.54 million in FY26 from INR 686.78 million in FY25.

- Tolexo Online Private Limited is contesting a tax demand with CIT(Appeals); management believes its position will be upheld, and no tax expense has been accrued.

- Busy Infotech Private Limited (formerly Tolexo) faces a tax demand of INR 242.99 million for AY 2017-18; management is contesting and believes it will succeed, with no provision made.

- A service tax demand of INR 15.38 million with 100% penalty for FY 2013-14 to 2017-18 is under appeal at the Tribunal; a provision was recorded in FY 2019-20.

- A GST demand of INR 101.90 million with 100% penalty from Central GST Commissionerate, Noida, is being appealed; management believes the credit was valid and no provision is made.

- The Group is involved in various lawsuits, but management believes outcomes will not materially affect financials, with provisions made only when losses are probable and estimable.

- Capital commitments stood at INR 3.64 million as of 31 March 2026, up from INR 3.26 million the previous year.

- Investment in associates had a carrying value of INR 3,550.24 million as of 31 March 2026, with a share in loss of INR 547.72 million for the year.

- A scheme of amalgamation among subsidiaries was approved by NCLT with an appointed date of 1 April 2023; Tolexo changed its name to Busy Infotech Private Limited.

- Key financial ratios show: Current Ratio at 2.34, Debt-Equity Ratio at 0.01, Return on Equity at 20.70%, and Net Profit Ratio at 30.25% for the year ended 31 March 2026.

- New Labour Codes effective from 21 November 2025 increased employee benefit provisions by INR 90.73 million; rules are pending notification.

- Dividends paid include INR 30 per equity share final and INR 20 per share special for FY 2025; a final dividend of INR 30 and special of INR 30 per share is proposed for FY 2026.

- Auditors issued an unqualified opinion on the standalone financial statements, highlighting key audit matters like revenue recognition and investment valuation.

- IndiaMART InterMESH Limited's defined benefit gratuity plan net liability increased to INR 378.75 million in FY2026 from INR 273.67 million in FY2025.

- Leave encashment obligation under other long-term employee benefits rose to INR 212.33 million in FY2026 from INR 207.81 million in FY2025.

- Total employee compensation cost for share-based payment plans was INR 366.20 million in FY2026, up from INR 187.44 million in FY2025.

- Financial assets measured at fair value through profit or loss totaled INR 34,373.10 million in FY2026, with investments in mutual funds and ETFs at INR 24,319.52 million.

- Segment revenue from Web and related services was INR 14,429.38 million in FY2026, while Accounting Software services contributed INR 1,261.04 million.

- Profit for the year decreased to INR 4,746.82 million in FY2026 from INR 5,506.98 million in FY2025.

- Contingent liabilities include income-tax demands of INR 302.68 million and service tax/GST demands of INR 219.18 million as of 31 March 2026.

- Key management personnel compensation totaled INR 202.98 million in FY2026, up from INR 185.07 million in FY2025.

- The Group's capital structure consists solely of equity with no borrowings, and it is not subject to externally imposed capital requirements.

- Sensitivity analysis shows that a 5% change in NAV of investments would impact profit before tax by approximately INR 1,514.70 million.

- Increased equity ownership in Fleetx Technologies from 16.53% to 22.25% by investing INR 410 million in CCPS and INR 0.75 million in equity shares, and converting an advance of INR 283.16 million into investments.

- Invested INR 60 million in CCPS of Truckhall Private Limited at a premium of INR 15,222 per share.

- Raised equity ownership in Mobisy Technologies from 31.33% to 32.53% by investing INR 51.30 million in equity shares at INR 2,352 per share.

- Converted 232,810 CCDs of Baldor Technologies into 695,822 equity shares, recognizing a fair value gain of INR 823.53 million.

- Recorded a fair value loss of INR 46.5 million for Zimyo Consulting due to lower-than-projected performance.

- Total non-current investments decreased slightly to INR 4,079.05 million from INR 4,201.96 million year-over-year.

- Current investments increased to INR 30,294.05 million from INR 27,882.07 million, driven by growth in mutual funds, ETFs, bonds, and government securities.

- Revenue from operations rose to INR 15,690.42 million from INR 13,883.44 million, with significant growth in accounting software services.

- Net profit decreased to INR 4,746.82 million from INR 5,506.98 million, with basic EPS falling to INR 79.07 from INR 91.84.

- Income tax expense increased to INR 1,732.61 million from INR 1,551.11 million, with an effective tax rate rise to 26.74% from 21.98%.

- IndiaMART Intermesh Limited's financial statements for the year ended 31 March 2026 detail accounting policies for taxes, provisions, employee benefits, financial instruments, and more.

- Taxes paid on expenses and assets are recognized net of recoverable amounts, except when non-recoverable or included in receivables/payables.

- Provisions are recognized for present obligations with probable outflows, while contingent liabilities are disclosed but not recognized.

- Employee benefits include short-term obligations, defined contribution provident fund, and defined benefit gratuity plan measured using actuarial valuations.

- Share-based payments (ESOPs and SARs) are equity-settled, with costs recognized based on fair value at grant date.

- Financial assets are classified into categories like amortized cost, FVTOCI, or FVTPL, with impairment assessed using expected credit loss models.

- Financial liabilities include trade payables and borrowings, measured at amortized cost or fair value through profit or loss.

- Foreign currency transactions are translated at spot rates, with exchange differences recognized in profit or loss.

- Earnings per share calculations consider net profit and weighted average shares, adjusted for dilutive effects.

- Segment reporting identifies 'Web and Related Services' and 'Accounting Software Services' as reportable segments.

- Property, plant, and equipment include computers, office equipment, and leasehold improvements, with net carrying values provided.

- Goodwill of INR 4,542.72 million is allocated to CGUs like Busy Infotech and Livekeeping, tested for impairment using value-in-use calculations.

- Intangible assets include software, technology, and channel network, with amortization details disclosed.

- Investments in associates like Simply Vyapar Apps and Mobisy Technologies are accounted for using the equity method, with share of losses recognized.

- Recent accounting pronouncements include Ind AS 118, effective from April 1, 2027, impacting presentation and disclosures.

- Significant estimates involve taxes, share-based payments, impairment of assets, defined benefit plans, and fair value measurements.

- Consolidated profit before tax for the year ended 31 March 2026 was INR 6,479.43 million, down from INR 7,058.09 million in the previous year.

- Cash generated from operations increased to INR 8,510.13 million in FY2026 from INR 7,780.55 million in FY2025.

- Dividend paid during the year was INR 3,000.37 million, significantly higher than the INR 1,198.85 million paid in the prior year.

- Net cash used in investing activities was INR 3,473.43 million, primarily due to purchases of current investments (INR 12,269.82 million) and investments in associates (INR 750.48 million).

- The Group's subsidiaries include Tradezeal Online Private Limited, Busy Infotech Private Limited, Livekeeping Technologies Private Limited, Pay With IndiaMART Private Limited, and IIL Digital Private Limited, all fully owned except Livekeeping (100% in 2026 vs. 65.97% in 2025).

- Associates include Simply Vyapar Apps Private Limited (28.59%), Truckhall Private Limited (34.46%), and others, with varying ownership percentages on a fully diluted basis.

- Revenue recognition policies are outlined for web services (pro-rata over contract period), lead-based services (on consumption or expiry), and software licenses (point-in-time activation).

- Depreciation rates for property, plant, and equipment are specified: Computers (63.16%), Furniture and fittings (26.89%), Office equipment (45.07%), and Vehicles (31.23%).

- The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) and were authorized for issue by the Board of Directors on 30 April 2026.

- Audit firm B S R & Co. LLP, with partner David Jones, provided the audit report, and key signatories include Managing Director Dinesh Chandra Agarwal and CFO Jitin Diwan.

- IndiaMART InterMESH Limited submitted its audited consolidated and standalone financial statements for the quarter and year ended March 31, 2026.

- Revenue from operations increased to INR 15,690.42 million in FY2026 from INR 13,883.44 million in FY2025.

- Net profit for the year was INR 4,746.82 million, down from INR 5,506.98 million in the previous year.

- Earnings per share (EPS) were INR 79.07 (basic) and INR 78.77 (diluted) for FY2026, compared to INR 91.84 and INR 91.59 in FY2025.

- Goodwill remained stable at INR 4,542.72 million, primarily from acquisitions of Busy Infotech Private Limited (INR 4,122.34 million) and Livekeeping Technologies Private Limited (INR 420.38 million).

- Investments in associates amounted to INR 3,550.24 million, and investments in other entities were INR 4,079.05 million as of March 31, 2026.

- Total equity increased to INR 24,003.75 million from INR 21,852.90 million in the prior year.

- A final dividend of INR 50 per share was proposed for FY2026, subject to shareholder approval.

- Key audit matters included revenue recognition from web services, goodwill impairment testing, and valuation of investments in associates and other entities.

- The auditor, B S R & Co. LLP, issued an unmodified opinion, confirming the financial statements present a true and fair view.