CarTrade Tech shares rise 9% after posting third consecutive quarterly profit

CarTrade Tech, one of India’s largest online classifieds and auto auction platforms, saw its share price skyrocket 9% in intra-day trade on Wednesday, January 29 to ₹1,489 apiece following the company's Q3FY25 earnings announcement.

During market hours today, the company announced its December quarter performance, posting a consolidated net profit of ₹45.33 crore, as its three business verticals delivered their highest-ever revenue and profits. In the same quarter last year, the company had reported a net loss of ₹23.55 crore. In the preceding two quarters, it recorded a PAT of ₹23 crore and ₹31 crore, respectively.

Its consumer group led the growth, achieving a 38% revenue increase and an impressive 172% PAT growth in Q3. The remarketing business also delivered strong results, with a 28% revenue increase and a 178% rise in PAT during the same period.

OLX India continued its robust performance, with profits surging 80% in Q3FY25 compared to Q2FY25, according to the company’s earnings filing. Its overall revenue stood at ₹193 crore in Q3FY25, reflecting a 27% YoY growth.

On the operational front, the company reported an EBITDA of ₹50 crore, marking a 98% growth, while the EBITDA margin improved by 1,000 basis points YoY, reaching 28%. In the December quarter, the company recorded an average of 79 million unique monthly visitors, with over 95% being organic. It is now present in over 450 physical locations, including Shriram Automall, CarWale abSure, Signature Dealers, and OLX India Franchisee.

Commenting on the company’s performance, Vinay Sanghi, Chairman and Founder, CarTrade Tech, said, “We are delighted to announce strong growth this quarter. All three of our business verticals delivered their highest-ever revenue and profits, further cementing our leadership in the market."

"Revenue for 9MFY25 grew by 32%, and our EBITDA surged by 100%, leading to PAT zooming to ₹99 crore. Our profit growth outpaced revenue growth, reflecting the strong operating leverage in play. In Q3 alone, profits rose sharply by 48% to ₹46 crore as compared to Q2. This growth underscores the tremendous potential we have ahead. As a product- and technology-led organization, we continue to build on our scalable digital platform, focusing on enhancing our customer experience and expanding our market share. The progress made so far positions us strongly for sustained growth as we continue transforming the digital marketplace," he added. 

Stock up 268% since March 2023

CarTrade Tech shares have been performing well on Dalal Street in recent years. From their March 2023 level of ₹389 apiece, they have surged 268% to trade at the current level of ₹1,432 apiece. Notably, from the all-time low of ₹340 apiece, the shares have surged by 321% to date.

The stock made its debut on the stock exchanges on August 20, 2021, after raising ₹2,998 crore through a complete offer for sale. The company operates an automotive digital ecosystem that connects automobile customers with automotive manufacturers ("OEMs"), dealers, banks, insurance companies, and other stakeholders.

It owns and operates under several brands, such as CarTrade, CarWale, and AutoBiz. Through these platforms, the company enables new and used automobile customers, vehicle dealerships, OEMs, and other businesses to buy and sell their vehicles simply and efficiently.

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