CarTrade Tech reported a robust performance, with its shares climbing nearly 5% for the second consecutive trading session on Friday following strong quarterly earnings and enhanced profitability across various segments. The stock closed at ₹1,954.90 on the National Stock Exchange (NSE), marking a 2% increase from the previous day’s close of ₹1,921.80. It reached an intraday high of ₹2,012.20.
The surge in shares follows a 64% year-on-year increase in standalone net profit for the quarter ending March 2026, amounting to ₹35.17 crore, compared to ₹21.44 crore in the same quarter last year. For the fiscal year 2026, profit after tax rose to ₹115.46 crore from ₹74.45 crore in the previous fiscal year, aided by operational efficiencies and improved margins.
Citi, a global brokerage, has retained its buy rating on the stock, albeit with a revised target price of ₹2,520, down from ₹3,150. The brokerage noted that while the OLX business did not meet expectations, the product pipeline remains encouraging despite concerns regarding potential disruption from artificial intelligence (AI). Citi emphasized that the automotive market continues to see sustained growth due to GST tax reductions, and CarTrade’s reported user traffic during the March quarter has not shown notable impacts from AI-driven changes in consumer behavior. Furthermore, it highlighted the promising product and monetization strategies within the used vehicle segment, which is less vulnerable to AI disruption.
Conversely, Kotak Securities maintained its sell recommendation on CarTrade, although it raised its target price to ₹1,860 from ₹1,800. The brokerage acknowledged the company’s strong profitability across segments but noted slight growth moderation in both standalone and OLX businesses. Kotak indicated that the improvement in EBITDA margins across segments was driven by operating leverage but suggested that future growth will hinge on more effective monetization of the core business and the OLX platform. They expressed a preference to await a better entry point given the current valuations.
The article was published on May 8, 2026.
