Shares of CarTrade Tech came under heavy selling pressure on Wednesday, slumping as much as 8.6 per cent to hit a day’s low of Rs 2,860.50 on the BSE, compared with the previous close of Rs 3,129.95. The sharp fall came after the company delivering a set of numbers for the September quarter (Q2FY26).
The auto-tech firm reported results that beat Street estimates, with EBITDA and PAT surpassing projections by 32 per cent and 31 per cent, respectively, according to Elara Securities. JM Financial also termed it a “strong beat”, attributing the performance to broad-based growth across key business segments – the Consumer Group (CarWale/BikeWale) grew 37 per cent YoY, the Remarketing (Shriram Automall) business rose 23 per cent YoY, and the OLX India classifieds segment expanded 17 per cent YoY, recording its highest-ever quarterly revenue and profitability.
Reflecting this upbeat performance, Elara Securities reiterated its ‘Buy’ rating on the stock and raised its target price to Rs 3,840 from Rs 3,590, implying an upside of 22 per cent from Tuesday’s close. The brokerage cited disciplined execution, operating leverage, and margin expansion as key drivers, while also highlighting the company’s asset-light model and a healthy cash position of Rs 1,080 crore as positives for sustaining profitable growth.
In contrast, JM Financial maintained its ‘Reduce’ stance, cautioning that the risk-reward remains unfavourable at current valuations. It said that despite the quarterly outperformance, there was no major structural change in the business and suggested that growth in the New Auto segment may have peaked, partly due to festive demand being advanced this year on GST benefits. The brokerage revised its target price to Rs 2,820, implying a nearly 10 per cent downside from the previous close.
JM Financial also flagged a new potential challenge, noting that Generative AI could pose a long-term threat to CarTrade’s business model. It warned that the rise of AI-driven assistants might erode the duopoly in New Auto digital advertising, with users increasingly shifting research to AI platforms that may not prioritise traditional auto-tech portals. While CarTrade’s management maintained that AI has boosted traffic on its platforms, JM Financial believes the technology remains a competitive overhang.
Meanwhile, CarTrade’s shareholding pattern for the September 2025 quarter showed continued foreign investor confidence. FII holdings rose to 68.5 per cent from 67.3 per cent sequentially, while DII holdings dipped slightly to 10.0 per cent from 10.5 per cent. Over the past year, the stock has been a multi-bagger, delivering over 200 per cent returns to investors.