Strong margin expansion, weak profit growth clouds acceleration narrative

₹213.1 Cr revenue; ₹236 Cr is total income incl. ₹23 Cr other income

Delivered PAT is ₹66 Cr; ₹10 Cr OLX write-back is one-time tax benefit

Delivered YoY revenue growth 10.2%

Delivered YoY PAT growth 2.9%

OPM 35.7% (EBITDA margin), NPM 27.9%; claim likely refers to EBITDA

Management stated 26% H1 growth; segment-level EBITDA margins not verified

Prior call (FY26) expected margin expansion; Q2 delivered 35.7% OPM (highest), EBITDA ₹76 Cr. On track with prior guidance.

Prior Q1 guidance hinted at growth; Q2 shows 26% H1 growth, management expects >30% ahead. New monetization models (Elite Buyer 6x to 1, Elite Seller scaling) cited as drivers.

Q2 growth only 4% YoY (vs. New Auto 37% prior year); traffic fell 76M→43M; base effects and seasonality cited but fundamental slowdown evident.

Previously (FY26 call) aspiration was vague; Q2 call quantifies 4-5 year target (27x growth), backed by new products and OLX acceleration, though mechanism is still unproven.

Base effect is significant; GST was lowered 22 Sept prior year. Growth of 37% then was inflated. This year, seasonal jump in Sept will flow through Oct.

Elite Buyer 30 days into launch, uptake strong. Growth rates will accelerate as product matures. No specific rates given; we expect 26% to be surpassed.

Base effect high in Q2 last year. Q3 will be best ever in New Auto history. Growth rates will keep improving.

Large reason is GST impact; 76M traffic last year largely due to GST spike. Festival timing delayed this year ~10 days. Organic at 96%; very stable metrics.

Used car business being consolidated. SAMIL is mostly retail auction business; very strong growth momentum.

Elite Buyer, Elite Seller launched late Q3/Q4; already 10%, 15% of revenue. Growth rates 26%, will be surpassed next quarters.

1.56M vehicles listed, 2.35L auctioned (Q2). ARPUs stable, mix shift to newer/older vehicles depending on repo cycles.

Festival season pushed from Sept to Oct this year (delayed ~10 days). Comparisons with prior non-festival periods show stable metrics.

No real change in OEM/dealer mix (65%-70%). We focus on building products and improving user experience, not expense-cutting.

Q3 will be best ever quarter in consumer. Growth rates will be 20%+ CAGR and best absolute numbers.

Costs not material. Built on proprietary AI, not third-party LLM data. Strength is data and intelligence, not cost.

Tech and product side; physical operating logistics with Landmark. Still working out margin structure and capital allocation.

Management claims growth momentum strong, base effects clearing; no specific revenue target given

Currently 26% H1; new product monetization (Elite Buyer, Seller) expected to drive acceleration

Hinges on new product adoption and OLX monetization; no segment-level breakdowns provided

Q2 delivered 35.7% OPM; management targeting 40% as group margin goal in coming years

OLX at 32% EBITDA margin; consumer at 5% (low, room for improvement)

Cash pool ₹1,400 Cr retained for M&A and shareholder returns; no expansion CAPEX mentioned

Consumer business (cars) grew only 4% Q2; traffic fell from 76M to 43M YoY. Base effects cited but underlying slowdown evident. OEM and dealer pressure on ad spends visible.

Elite Buyer/Seller products only ~30 days old; claimed 10-15% of OLX revenue but unverified. 26% growth rate must accelerate to >30% to justify claims; new monetization models are unproven at scale.

PAT growth only 2.9% YoY despite 10.2% revenue growth and 35.7% margin expansion. One-time ₹10 Cr OLX write-back distorts; core PAT growth near 0%. Suggests underlying profitability headwinds (costs, mix, or tax normalization).

VAYA Live is in beta/testing phase; dual products (B2B for OEMs/dealers, B2C for consumers); cost structure unquantified; no revenue contribution yet. Competitive threat from aggregators and OEM platforms.

Landmark partnership for physical operations (B2C marketplace expansion) still in negotiation phase; margin structure and capital allocation unclear; could dilute consolidated margins if capital-heavy.