Automotive classifieds portal CarTrade has released its 3rd quarter of the current financial year (Q3 FY26) financial performance, revealing a phase of strong business expansion and financial soundness. CarTrade is a Mumbai-based company that showed an increase of 19% in revenue generated by the business on an annual basis, thus reaching ₹210 crore in Q3 FY26 as compared to ₹176 crore in the same quarter of the prior fiscal year. This growth trend in revenue was accompanied by a total revenue of ₹228 crore during the quarter, which is an improvement of ₹193 crore in Q3 FY25.
Primary business segments and cost management
CarTrade has three main segments of business: Consumer, Remarketing, and Classifieds. The consumer segment was the highest contributor to the top line of the company, with 41% of the total operating revenue. Revenues of this particular vertical grew to ₹86 crore as of the quarter. The remarketing and classifieds segments were also performing well, adding ₹66 crore and ₹59 crore to the total revenue pool of the third quarter, respectively. This differentiated revenue model has enabled the company to enjoy consistent expansion in various aspects of the automotive industry.
Cost control contributed to the financial success of the company in the Q3 FY26. The overall cost of the quarter increased by a small margin of 3% to ₹144 crore, compared to ₹139.5 crore last year. The most important expense was the employee benefits, which amounted to 53% of total spending. This expense experienced a regulated growth of 4% and amounted to ₹76 crore rupees. CarTrade was in a position to improve its bottom-line performance by ensuring that its operational costs are kept under control while at the same time propelling its revenue levels.
Revenue growth
The combination of doubled revenue growth and strict expenditures permitted a significant increase in profitability. CarTrade in Q3 FY26 recorded an increase in net profit of 35%, surpassing the ₹50 crore mark by hitting ₹61.5 crore. This is a significant rise compared to the ₹45.5 crore profit in Q3 FY25. At the corporate level, the company has just ended the negotiations about a possible merger with a competitor, CarDekho, as the two companies agreed that they should cancel the merger. At the time of the reporting period, the share price of CarTrade was ₹2,333, which means that the company has a market capitalization of ₹11,163 crore (approximately $1.2 billion).
Conclusion
The Q3 FY26 performance of CarTrade demonstrates the strengths of its capacity to grow effectively in a competitive car classifieds market. The 35% increase in net profit and the consistent 19% growth in operating revenue are indicative of a viable balance between being aggressive in the market and operating with caution.
The company has been able to build a profitable edge in the sector through its consumers and remarketing units, as well as its firm grip on managing its employees and operational expenses. These outcomes are indicative of a strong financial background since the company is still struggling alone through the changing Indian automotive environment.
Read the full article here