CARTRADE's Q2 FY27 numbers came in strong, with revenue of Rs. 213.09 Cr (+10.17% YoY) and PAT growth of +2.93% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 213.09 Cr (+10.17% YoY) |
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| PAT (Q2) | Rs. 65.95 Cr (+2.93% YoY) |
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| EBITDA margin | 35.67% (+280 bps YoY) |
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| EPS (Q2) | Rs. 12.30 (-2.07% YoY) |
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| Market cap | Rs. 11,532.38 Cr |
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| CMP | Rs. 2,372.20 |
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Quarter Snapshot
CarTrade delivered an all-time-high revenue of Rs.213.09 Cr (+10.17% YoY) with company-basis EBITDA margin of 35.67%, beating management's own guidance to surpass 31% by ~470 bps, led by OLX Classifieds (+26.4% revenue, +41.8% result). The disconnect is that PAT to owners was flat YoY (-0.30%) due to the guided OLX tax normalization (ETR 19.83% to 22.81%) and 46.6% NCI growth, while Consumer segment growth of 4.26% YoY lags its ~25% long-term guide. Cash conversion (1.12x), a zero-debt balance sheet with Rs.1,088 Cr of cash and investments, and clean sequential PAT growth of +16.2% support a positive but not unambiguously strong read.
Key Investment Insights
Key Positives
- Revenue from operations grew 10.17% YoY to Rs.213.09 Cr, an all-time quarterly high
- Company-basis EBITDA margin of 35.67% exceeded management's guidance to surpass 31% by ~470 bps, up ~280 bps YoY and ~440 bps QoQ
- Classifieds (OLX) revenue grew 26.41% YoY with segment result up 41.81% and margin up ~410 bps to 38.09%
- Remarketing revenue grew 12.26% YoY with segment result up 29.16% and margin up ~395 bps to 30.16%
- All three segment margins expanded YoY, consistent with management's FY27 margin-expansion guidance
- H1 CFO of Rs.137.51 Cr was 1.12x H1 PAT; FCF of Rs.101.25 Cr after Rs.36.26 Cr capex
- Zero-debt balance sheet with Rs.1,088.06 Cr of cash plus investments, up ~Rs.153 Cr since March 2026
- No exceptional item in Q2; sequential PAT growth of +16.21% is clean of one-time noise
Risk Factors
- PAT to owners declined 0.30% YoY despite 10.17% revenue growth, as tax expense rose 22.93% YoY (ETR 19.83% to 22.81% on OLX taxability) and NCI rose 46.58%
- Consumer segment revenue grew only 4.26% YoY and 1.77% QoQ, well below management's ~25% 3-5 year growth guide and its stated expectation of re-acceleration
- Remarketing growth of 12.26% YoY fell short of the ~22% growth guide from the Q3 FY26 call
- Share-based expenses nearly doubled YoY to Rs.6.36 Cr (+86.6%), with no scheme-level split disclosed
- Consumer Business CEO resigned August 25, 2026 with succession not addressed in the filing
- H1 PAT to owners of Rs.110.73 Cr (+7.99% YoY) tracks below the ~40% compounding required for the Rs.1,000 Cr PAT ambition in 4-5 years