Target: ₹2,953

CMP: ₹1,836.20

CarTrade Tech Ltd is India’s leading multi-channel digital marketplace, connecting consumers, dealers, OEMs and financial institutions across verticles, majorly the vehicle buying and selling journey. The company operates a multi-brands model across three complementary segments – Consumer (CarWale and BikeWale), Remarketing (Shriram Automall – SAMIL) and Classifieds (OLX India).

With 500+ physical touchpoints, over 15 crore yearly unique users across each platform, and 95 per cent organic traffic, CarTrade operates a capital-light, high-margin platform business – it does not own or transact in vehicles at any point. Revenue grew at a 29 per cent CAGR over FY23– 26 to ₹779 crore in FY26, with EBITDA CAGR at 98 per cent to ₹257 crore (with margins expanding from 9 per cent to 33 per cent).

In FY26, consolidated revenue grew 22 per cent y-o-y to ₹779 crore, EBITDA grew at 71 per cent y-o-y, and PAT grew 77 per cent y-o-y – a direct read-through of operating leverage on a fixed-cost base.

We initiate coverage on Cartrade Tech with a Buy rating and a Target Price of ₹2,953. The company is at a clear inflection – all three segments firing simultaneously, operating leverage converting incremental revenue almost entirely to profit, and a debt-free balance sheet with ₹1,250 crore in cash providing strategic optionality. Execution risks – particularly OLX monetisation pace & OEM spending shift – are factored conservatively into our estimates.

Published on May 14, 2026