How Did CarTrade Deliver Double-Digit Profit Growth in Q1 FY27?
CarTrade Tech, one of India’s leading automobile classifieds and auto-tech platforms, reported a strong start to FY27, posting 16% year-on-year growth in operating revenue and a 21% increase in net profit for the quarter ended June 2026.
According to the company’s unaudited financial results filed with the National Stock Exchange (NSE), revenue from operations rose to ₹201 crore in Q1 FY27, compared with ₹173 crore in the corresponding quarter of the previous financial year.
The company also announced a strategic partnership with Spinny to strengthen the used-car buying and selling experience across CarWale and OLX India, further expanding its presence in the digital automotive marketplace.
Revenue Crosses ₹200 Crore
CarTrade reported ₹201 crore in operating revenue during the first quarter of FY27, representing a 16.2% year-on-year increase.
The Mumbai-based company operates across three core business segments:
- Consumer: ₹78 crore
- Remarketing: ₹67 crore
- Classifieds: ₹62 crore
After accounting for ₹6.4 crore in intersegment eliminations, the company’s operating revenue stood at ₹201 crore.
In addition, CarTrade earned ₹29 crore in non-operating income, taking its total income to ₹230 crore, up from ₹199 crore in Q1 FY26.
On a sequential basis, however, operating revenue declined marginally from ₹203 crore reported in Q4 FY26.
Employee Costs Remain Largest Expense
Employee benefits continued to be CarTrade’s biggest operating expense during the quarter.
The company spent ₹83 crore on employee benefits, up from ₹75 crore in Q1 FY26, accounting for nearly 55% of its total expenditure.
Other major expenses included:
- Other operating expenses: ₹55 crore
- Depreciation: ₹11 crore
- Finance costs: ₹3.2 crore
Overall, total expenditure increased 7% year-on-year to ₹152 crore, compared with ₹142 crore in the same quarter last year.
The relatively slower growth in expenses compared to revenue helped improve the company’s profitability.
Profit Rises 21% Year-on-Year
Supported by growth across all operating segments and disciplined cost management, CarTrade’s net profit increased 21.3% to ₹57 crore in Q1 FY27 from ₹47 crore in Q1 FY26.
However, on a quarter-on-quarter basis, profit declined by nearly 20%, compared with ₹71 crore reported in Q4 FY26.
Despite the sequential decline, the company’s year-on-year performance reflects continued operational strength and healthy margins.
Partners with Spinny to Expand Used-Car Marketplace
Alongside its quarterly results, CarTrade also announced a strategic partnership with Spinny.
Under the collaboration:
- CarWale and OLX India users will gain access to Spinny’s quality-assured used-car inventory.
- CarTrade will utilise its proprietary VAYA AI technology to connect buyers with relevant vehicle listings in real time.
The partnership is expected to enhance customer experience while strengthening CarTrade’s position in India’s fast-growing online used-car market.
Market Performance
As of 11:32 AM, CarTrade Tech’s shares were trading at ₹2,812, giving the company a market capitalisation of approximately ₹14,187 crore.
The company’s consistent profitability, diversified revenue streams, and strategic partnerships continue to strengthen investor confidence in its long-term growth prospects.
What’s Next?
CarTrade has begun FY27 on a positive note with double digit growth in both revenue and profit, supported by strong performance across its Consumer, Remarketing, and Classifieds businesses. The new partnership with Spinny further enhances its presence in the online used-car ecosystem and expands the value proposition for customers. Going forward, investors will closely monitor revenue growth, profitability, and the impact of AI-driven initiatives such as VAYA AI on customer engagement and platform expansion.
