Zerodha-backed stock crashes 11% after announcing its Q3 results

SYNOPSIS: CarTrade Tech Limited reported healthy year-on-year revenue and profit growth in Q3 FY26, though a sequential dip in profitability and moderation in growth momentum weighed on investor sentiment during the session.

During Wednesday’s trading session, shares of India’s largest digital marketplace ecosystem, operating multiple platforms, tumbled nearly 11 percent on BSE, despite reporting a revenue growth of around 8 percent QoQ and 19 percent YoY.

At 02:28 p.m., shares of Cartrade Tech Limited were trading in the red at Rs. 2,439.4 on BSE, down by around 4 percent, compared to its previous closing price of Rs. 2,542.3, with a market cap of Rs. 11,671 crores. The stock has delivered positive returns of over 78 percent in the last one year, but has fallen by around 10 percent in the last one month.

Financial Performance for Q3 FY26

Cartrade Tech Limited announced the financial results for the third quarter of FY26 on Wednesday during market hours, as per the latest regulatory filings with the stock exchanges.

For the quarter, the company posted a consolidated revenue from operations of Rs. 209.67 crores, reflecting a sequential growth of over 8 percent QoQ compared to Rs. 193.4 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue also grew nearly 19 percent from Rs. 176.2 crores recorded in Q3 FY25.

Net profit for Q3 FY26 stood at Rs. 61.5 crore, indicating a decrease of nearly 4 percent QoQ from Rs. 64 crores in Q2 FY26. Meanwhile, on a year-on-year basis, the PAT surged by more than 35 percent from Rs. 45.5 crores reported in Q3 FY25. Excluding the impact of the New Labour Code, PAT stood higher at Rs. 68.03 crore, translating into a 49 percent YoY growth.

Despite the strong year-on-year improvement in profitability, the stock tumbled during Wednesday’s session. The sequential dip in profit, along with a relatively slower pace of revenue growth compared to the previous quarter, may have tempered investor sentiment and contributed to the stock’s decline.

Further, operating performance improved significantly during the quarter, with consolidated EBITDA rising sharply by about 56 percent YoY to Rs. 78.2 crore from Rs. 50 crore in Q3 FY25. EBITDA margins also expanded to 37 percent from 28 percent.

Segment Performance

For Q3 FY26, the Consumer Group remained the largest contributor with Rs. 86.3 crore, accounting for about 41 percent of total revenue, and delivered a strong operating performance with 27 percent YoY revenue growth, 55 percent EBITDA growth, and an EBITDA margin of 43 percent in Q3 FY26.

The Remarketing business generated Rs. 65.6 crore, contributing nearly 31 percent of revenue, reporting 12 percent YoY revenue growth, a sharp 68 percent rise in PAT, and an EBITDA margin of 30 percent.

Meanwhile, OLX India (Classifieds) posted revenue of Rs. 58.8 crore, forming around 28 percent of total revenue, supported by 18 percent YoY revenue growth, 70 percent EBITDA growth, and a healthy EBITDA margin of 37 percent during the quarter.

Operational Highlights

During the quarter, Cartrade Tech engaged around 85 million average monthly unique visitors, with organic traffic contributing about 95 percent. The company now operates across over 500 physical locations, including Shriram Automall, CarWale abSure and Signature dealerships, and OLX India franchise outlets, strengthening nationwide presence and enabling effective last-mile connectivity.

Its flagship digital platforms – CarWale, BikeWale and OLX India – each attracted more than 150 million annual unique visitors, highlighting the scale and depth of engagement across the ecosystem. Meanwhile, the remarketing business achieved an annualised run-rate of around 1.9 million auction listings.

CarTrade Tech Limited operates an automotive digital ecosystem which connects automobile customers, OEMs, dealers, banks, insurance companies and other stakeholders.

The company owns and operates under several brands: CarTrade, CarWale, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, OLX India and Lead To Retail (L2R). Through these platforms, CarTrade enables new and used automobile customers, vehicle dealerships, Automotive Manufacturers (OEMs) and other businesses to assist dealers in buying and selling their vehicles. As per the December 2025 shareholding pattern, Zerodha Broking holds a 1.16 percent stake in the company.

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