CarTrade Tech Ltd reported a 3% year-on-year increase in net profit to Rs 66 crore in the second quarter of FY27, supported by a 10% rise in revenue to Rs 213.1 crore. The company's OLX India segment surged 26% in revenue, underpinned by new artificial intelligence-powered innovations that aim to enhance customer experience.
- Net profit increased 3% YoY to Rs 66 crore in Q2 FY27
- OLX India revenue jumped 26% aided by new AI tools
- Remarketing business leads with 1.6 million annual auction listings
What happened
CarTrade Tech Ltd posted consolidated net profit of Rs 66 crore in the September quarter of FY27, marking a 3% increase compared to Rs 64.1 crore in the previous year’s corresponding quarter. Revenue from operations rose 10% year-on-year to Rs 213.1 crore, reflecting steady business growth across multiple segments. Including other income mainly from interest and asset sales, total revenue stood at Rs 236.2 crore, a 6% rise from last year.
The company highlighted strong performance from its consumer group business generating Rs 79.5 crore and from its remarketing segment, which achieved Rs 70.3 crore in revenue through wholesale vehicle auctions. OLX India, acquired fully in August 2023, reported a notable 26% revenue increase and 36% rise in EBITDA, signaling successful integration and growth momentum.
Why it matters
CarTrade's financial results reflect solid execution in India's expanding automotive classifieds and remarketing markets. The increase in profit and revenue, alongside continued strong organic traffic of 76 million monthly unique visitors, underscores the platform’s growing relevance for buyers and sellers. OLX India’s robust growth demonstrates the strategic value of its acquisition and the synergy created by combining major online marketplaces under one umbrella.
The launch of AI-powered tools such as virtual assistants addressing test drives, loans, pricing, and delivery indicates a proactive approach to technological innovation aimed at enhancing user experience. The company’s VAYA Live platform, offering real-time market analytics and targeted AI-driven marketing solutions, positions CarTrade as a data-driven leader well-placed to capitalize on evolving digital trends in the automotive sector.
What to watch next
Stakeholders should monitor how CarTrade leverages its AI capabilities to further improve customer acquisition and retention as well as operational efficiencies. The effectiveness of AI assistants in simplifying car buying and the expansion of the VAYA Live platform’s adoption among OEMs and dealers will be key to sustaining profitability and market share gains.
The progress of CarTrade's remarketing business with its annualized auction listings run-rate of 1.6 million warrants attention as it consolidates market leadership. Future quarterly updates will likely reveal the impact of scaling physical presence across dealer networks and franchisees on revenue diversification and potential margin expansion.