Shares of Indiamart InterMESH Ltd. experienced a significant decline of 7.51 percent, hitting Rs 1,775 apiece on the BSE, following the release of its first-quarter results. The sharp fall, which contributed to a 26.60 percent drop over the past year, was primarily attributed to elevated customer churn and a notable decrease in paid subscriber numbers.
Q1 Performance Highlights and Brokerage Reactions
Indiamart's Q1FY27 saw a loss of 1,800 paying subscribers, an increase from 1,200 in Q4FY26 and 1,000 in Q3FY26. This trend, coupled with what analysts described as 'anaemic' gross additions, has intensified concerns about the company's subscriber growth trajectory. Despite an 8 percent year-on-year increase in customer collections, largely driven by higher average revenue per user (ARPU) from previous price hikes, the overall sentiment among several brokerages turned cautious.
Revised Price Targets and Ratings
Following the results, a number of financial institutions revised their outlooks on Indiamart's stock:
- Nomura maintained a target of Rs 1,810, highlighting persistent customer churn and slow gross subscriber additions.
- Jefferies downgraded its rating to 'Underperform' and lowered its target price to Rs 1,650 from Rs 1,810.
- Centrum Broking shifted its stance from 'Buy' to 'Neutral,' reducing its target from Rs 2,570 to Rs 2,073.
- DAM Capital also revised its target downwards to Rs 1,680 from Rs 2,020.
- Choice Institutional Equities reiterated an 'ADD' rating but adjusted its target to Rs 2,060, citing expectations of near-term growth remaining ARPU-led due to elevated churn and softer buyer inquiries.
Contrasting Views and Consensus
While many brokerages adjusted targets downwards, not all shared the same pessimistic view. ICICI Securities maintained a 'Buy' rating with a target of Rs 2,300, arguing that the stock appears attractive at its current valuation. This assessment is based on sustained monetization improvements from core customers and efficiency gains through automation, including a 6 percent reduction in employees over the last nine months.
The Bloomberg consensus target for Indiamart now stands at Rs 2,095.11, suggesting an 11 percent potential upside. The overall analyst sentiment reflects a mixed bag, with 10 'Buy' calls, six 'Sell' recommendations, and two 'Hold' ratings on the stock.