Indiamart Intermesh Limited — Q4 FY26 earnings call

So in terms of about 1,200-odd customers decrease. I think if there was no war, we could have been probably 2,000 customers positive. So that gives you the entire quarter, maybe 3,000. And out of that, I would say 1,000 - 1,500 could be because of the war, 1,000 - 1,500 could have been because of the price.

Management attributes the decline in paying suppliers to a combination of price increases and geopolitical factors, providing a quantitative breakdown of the impact.

Asked by Vivekanand Subbaraman

As I have been repeating quarter-on-quarter, Gold and Platinum continue to do healthy business with the monthly churn rates in the Platinum segment being much lesser than 1% and in the Gold segment anywhere 1% to 1.5%. So on overall basis, about approximately 1% per month. While on the Silver annual, they are about 4% and the Silver monthly, they are about 7%.

Provides specific churn rates for different subscription tiers, highlighting higher churn in the Silver segment.

Asked by Vivekanand Subbaraman

So in total, 1.6 crore GST registered businesses. Typically, about 5% churn in GST registered businesses at the GST registration, cancellation, suspension that you would see. ... almost 50 lakh businesses with GST identified are registered with their own OTP, of the own email on IndiaMART. ... we now have 2 lakh 20 thousand customers which are live online.

Clarifies the total addressable market (1.6 crore GST registered MSMEs) and IndiaMART's current reach (50 lakh registered, 2.2 lakh paying), indicating significant headroom.

Asked by Anmol Garg

So how do you think that the growth going ahead in the business would be from that perspective? ... You can see, out of our total growth number, when we were at upwards of 20%, half of that came from ARPU growth and half of that came from customer growth over a longer period of time. Currently, since the customer growth is hardly 1 - 2%, so most of the growth is coming from ARPU which is growing at 8 - 9%.

Explains the shift in growth drivers, with current growth predominantly ARPU-led (8-9%) due to slow customer growth (1-2%).

Asked by Anmol Garg

I don't know if there are significant impact started to happen on our kind of website today. So in terms of our traffic, there is so much of bot traffic, and there's so much of real traffic, and there's so much of agentic traffic. ... I can't say that there's an impact on B2B kind of enquiry have reached to the ChatGPTs. I think ChatGPTs are still limited to more consumer facing entertainment, infotainment, but I don't think they are yet very, very good at the B2B kind of queries.

Management believes current AI platforms like ChatGPT are not yet significantly impacting B2B enquiries, suggesting limited immediate competitive threat from this vector.

Asked by Anmol Garg

So few experiments that we are doing in the last 3 - 4 months is all these while we have been trying to improve the trust of the platform by putting more verification on the seller side. ... Now we are going ahead and also saying that you can maybe make 1 or 2 enquiry without verifying yourself. But if you're trying to make multiple enquiries, please verify your phone number through an OTP, please verify your email ID, please verify yourself. So we are starting to do more buyer verification also, and that is leading to probably 1% of drop in the conversion from traffic to this.

Management explains the 1% decline in unique business enquiries as a deliberate trade-off due to increased buyer verification efforts aimed at improving platform trust and lead quality.

Asked by Nikhil Choudhary

We are seeing uptick in ARPU because here you are seeing a mixed ARPU of everybody together. So you will see ARPU uptick in times to come because it is only applied to new subscribers signing up, not an entire base over a period of time. So every price hike takes 1,2,3 years. So any price hike that we would have taken 1 year ago in Trustseal or 2 year ago in the Star supplier or 2 year ago in the Silver, is still in the rolling out phase.

Management clarifies that ARPU increases from price hikes are realized gradually over 1-3 years as they apply primarily to new subscribers and roll out across the base.

Asked by Ritvik Agarwal

Yes, there is definitely a worry of falling into the vicious loop because that virtuous cycle where the suppliers were increasing and buyers were increasing. ... I think that's where we have hit a little bit of a saturation point, but we are trying our best to find out what will keep bringing the buyers with a better frequency and what will keep the sellers with a better retention. So I think, this is a typical S curve that you find, it's the growth-consolidation.

Management acknowledges the concern about a 'vicious loop' due to slowing growth in both suppliers and active buyers, viewing it as a 'growth-consolidation' phase requiring new levers.

Asked by Abhisek Banerjee