Transcript of earning call for Q4FY26 result
CARTRADE · price
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CarTrade Tech reported a strong Q4FY26 with PAT crossing INR70.84 crores for the first time (up 54%), while full-year PAT jumped 68% to INR243 crores. Revenue grew 22% for the year and 20% for the quarter, with EBITDA margins at 35% for Q4 and 33% for the full year. The company has INR1,244 crores in cash reserves and targets approximately INR1,000 crores profit in the next 4-5 years (4X current level). Management highlighted AI initiatives including Elite Buyer, Verification, and Super Dost (instant sale tool) across OLX and remarketing businesses, expecting new monetization products to become significant contributors from this quarter onwards. All three business segments achieved highest-ever revenue, margins, and profits. ROE remains low at 10% due to large cash balance, with management planning shareholder returns after 2-3 years once tax shelters are exhausted.
Strong margin expansion and new AI-driven monetization products position the company for sustained growth. The 4X profit target over 4-5 years signals management confidence, though investors should note ROE is depressed by idle cash awaiting deployment or shareholder return.