CarTrade Tech Stock Slumps 17% After Q2 Results

CarTrade Tech shares plunged more than 17% on Wednesday after the company's September quarter results showed slower revenue growth and a marginal decline in net profit.

The stock declined 17.2% to reach ₹2,336.10 following the earnings announcement, reflecting investor concerns over the company's financial performance.

It was also nearly 30% below its 52-week high of ₹3,290.

Revenue Growth Slows To 10.4%

CarTrade Tech reported revenue of ₹213 crore for the September quarter, representing a 10.4% year-on-year increase from ₹193 crore.

However, the growth rate was considerably lower than the 27% recorded in the corresponding quarter of FY25 and 29% in FY26.

Consolidated net profit declined 0.8% to ₹59.5 crore from ₹60 crore in the year-ago period.

Despite slower revenue expansion, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 18.8% to ₹76 crore.

The EBITDA margin improved by 270 basis points to 35.7%, compared with 33% a year earlier.

The contrasting trends indicated stronger operating profitability even as overall earnings growth remained subdued.

CarTrade Tech reported nearly 76 million average monthly unique visitors during the quarter, with organic traffic accounting for 96% of the total.

The company's physical presence expanded to more than 500 locations.

Its remarketing business achieved an annualised auction listing run rate of 1.6 million.

Meanwhile, OLX India recorded 26% revenue growth and a 36% increase in EBITDA.

CarTrade Tech Chairman and Founder Vinay Sanghi expressed optimism about the company's technology-driven expansion.

He said artificial intelligence (AI) was creating opportunities to develop innovative products and improve user experiences across its platforms.

Sanghi also highlighted the company's scale, organic reach and asset-light operating model as strengths supporting sustainable profitability.

However, the sharp decline in CarTrade Tech's share price following the results reflected market concerns about slowing topline growth despite improvements in operating margins.