CarTrade Tech Q2 Profit More Than Doubles: Stock Soars to All-Time High
CarTrade Tech has made headlines as its Q2 net profit skyrocketed, more than doubling to ₹64.1 crore, resulting in a substantial 18% surge in its stock—reaching a new 52-week high of ₹3143 on the BSE. This impressive growth has been fueled by strong revenue increases and enhanced profit margins.
Key Financial Highlights
– Net Profit Growth:
– Q2 FY26 net profit rose 109% year-on-year, from ₹30.7 crore to ₹64.1 crore.
– Sequentially, profit increased 36.1% from ₹47.1 crore in the previous quarter.
– Revenue Performance:
– Revenue for the September quarter grew 25% year-on-year, totaling ₹193.4 crore compared to ₹154.2 crore a year earlier.
– This marks an increase of nearly 12% from ₹173 crore in the previous quarter.
– Expense Management:
– Total expenses were modestly up by 5.3% year-on-year, and 0.4% quarter-on-quarter, amounting to ₹142.2 crore in Q2 FY26, showcasing effective cost management strategies.
Consumer Group Spearheads Growth
The company’s Consumer Group division emerged as a pivotal growth driver:
– Revenue Surge: Revenue in this division surged 37% year-on-year.
– Profit After Tax: Increased by 82%.
– EBITDA Margin: Achieved an impressive 40%, setting a high industry standard.
OLX India Integration
The performance of OLX India, acquired by CarTrade in 2023, was also noteworthy:
– Revenue Enhancement: Grew 17% year-on-year.
– Profits: Profits after tax surged 213%.
– EBITDA Margin: Maintained a solid 30% for Q2 FY26, reinforcing its consistent growth trajectory.
The stock’s rise underscores a remarkable performance in the past year, with shares up 169% amidst renewed investor confidence. CarTrade’s stock has seen an 85.5% increase year-to-date, highlighting a strong turnaround and optimistic growth potential.
Conclusion
CarTrade Tech’s robust financial results for Q2, marked by significant profit and revenue growth, have propelled its stock to unprecedented heights. As the company continues to navigate its growth strategy, investor interest remains high, indicating a promising future in the online auto reselling market.