Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
IndiaMART InterMESH Ltd (NSE: INDIAMART) Q3 2026 Earnings Call dated Jan. 20, 2026
Corporate Participants:
Abhijit Vikram — Head of Investor Relations
Unidentified Speaker
Dinesh Agarwal — Chief Executive Officer
Brijesh Agrawal — Co-Founder & Whole-Time Director
Jitin Diwan — Chief Financial Officer
Analysts:
Amit Chandra — Analyst
Anmol Garg — Analyst
Prashant Agarwal — Analyst
Anirudh Shetty — Analyst
Nikhil Choudhary — Analyst
Swapnil Potdukhe — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Abhijit Vikram — Head of Investor Relations
Ladies and gentlemen, I am Abhijit Vikram, Head of Investor Relations on behalf of India Mart International Limited I welcome you all to the.
Unidentified Speaker
Foreign. Good evening ladies and gentlemen, I am Abhijit Vikram, Head of Investor Relations on behalf of India Mart Intermesh Limited. I welcome you all to the company’s quarter three FY26 earnings webinar. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity to ask questions after the presentation concludes. Joining us today from the management we have Mr. Dinesh Agrawal, Chief Executive Officer, Mr. Brijesh Agrawal, full time Director, Mr. Jidindiwan, Chief Financial Officer and Mr.
Pratik Chandra, Chief Strategy Officer. Before we begin, I would like to remind you that some of the statements made in today’s call may be forward looking in nature and may involve risk and uncertainties. Kindly refer to slide number three of the earnings presentation for the detailed disclaimer. Now I would like to hand over the call to Mr. Dinesh Agal for his opening remarks. Thank you. And over to you sir.
Dinesh Agarwal — Chief Executive Officer
Thank you Abhijit Good evening everyone and welcome to India March quarter three FY26 earnings webinar. We have circulated our earnings presentation which is available on our website as well as stock exchange website. We assure you would have gone through the same and we would be happy to take any questions afterward. IndiaMART had delivered a consolidated revenue from operations of rupees 402 crores in the quarter three representing a year on year growth of 13%. Collections from customer grew to rupees 426 crore representing year on year growth of 17%.
Deferred revenue grew to 1775 crores representing year on year growth of 19%. In quarter three unique business inquiries reached 28 million growing 4% year on year along with continued improvement in the quality of inquiries. Total number of paying suppliers declined by 1,000 to 2 lakh and 21,000. This decrease can primarily be attributed to moderation and gross addition due to price increase we implemented in the silver subscription trigger during the last quarter. Additionally, lesser number of working days due to festival season has also contributed to the decline.
Our Platinum and Gold customers which constitute approximately 50% of our customer base and more than 75% of the revenue continue to have good upsell and retention rate. Our company has always been an early adopter of the new technologies. Nearly a decade ago we introduced behavioral data based matchmaking which was powered by AI and machine learning. Today we are accelerating that journey further. We are adopting rapidly adopting AI enabled technologies to enhance the quality of our product and platform, improve user experience and engagement for buyers and suppliers and reinforcing element of trust across the marketplace.
We remain committed to elevating quality standards and improving the user experience to maximize the value offered by our platform. Now I will hand over call to Brijesh for update on Busy Infotech. Thank you and over to you.
Brijesh Agrawal — Co-Founder & Whole-Time Director
Hi good evening everyone. At Busy we’ve done a billing of 33 crores in Q3. The normalized year on year growth rate after removing the impact of the change in the payout structure for partners is at 28%. The revenue from operations was 32 crores and the deferred revenue was at 112 crores at the end of Q3. This represents a growth rate of 50% and 56% on a normalized basis. The cash flow from operations was 6 crores for the quarter. During the quarter Visi also sold about 10,000 new licenses taking the total number of licenses sold to about 4:31,000.
As we have been sharing in the past calls, we continue to invest behind enhancing the overall product experience and growing the sales channels that we have so that we can build the foundation for sustained high growth business at Busy and for years to come. Now with this I’ll hand it over to Jitin to discuss the financial performance.
Jitin Diwan — Chief Financial Officer
Thank you sir. Good evening everyone. I’ll take you through the financial performance for the quarter ending December 2025. Consolidated collection from customers was rupees 426 crores in the quarter representing buy and buy growth of 7%. IndiaMART standalone collection from customer for the quarter was 390 crores, registering buy and buy growth of 14%. Consolidated deferred revenue stood at 1775 crores, an increase of 19% on a buy and buy basis. Consolidated revenue from operations was 402 crores, registering Vyanwag growth of 13% and consolidated ability was 134 crores representing margin of 33% in Q3.
Consolidated other income for the quarter stood at 135 crores. This includes one time fair valuation gain of about 82 crores on account of revaluation of our strategic investment bank Technologies Consolidated net profit for the quarter was 188cr. Consolidated cash generated from operations was 129crores. Treasury balance to that 3051crores as in 12-31-2025. Thank you very much. Now we are ready to take any questions.
Questions and Answers:
Unidentified Participant
We will now if you wish to question to the panelists, kindly raise your hand and allow camera and microphone access. Alternatively, you may type your question done question so that we may be able to address questions from all the participants. We will wait for a few seconds until the question view assembles.
Amit Chandra
First question is from the line of Anmol Kirk from Dam Capital. Anmol, please unmute yourself and go ahead with your question.
Unidentified Participant
Anmol please go ahead.
Anmol Garg
Yeah, I hope I am audible.
Unidentified Participant
Yes, please go ahead. Yeah,
Anmol Garg
Yeah. Thanks for the opportunity. A couple of things. Firstly, wanted to understand that, you know, it’s been now a few quarters since our paid supply numbers have remained kind of subdued. So from that perspective, how do you see it going ahead in terms of do you think that somewhere the market is saturated for us or do you feel that and do you feel that. We might have to kind of make. Changes to our business model in terms of introducing transaction based aspects to our business model or do we kind of prefer to work on the classified plus model going ahead as well?
Dinesh Agarwal
So let me just answer one by one. Do we feel market is saturated? No market has kind of unlimited demand for enough number of leads and quality leads that can be converted by sellers. So there is enough number of sellers willing to pay if they get leads which which can be converted by them. Second, is there a to attract more buyers, do we want to prefer moving to a fulfillment model? No, we would like to remain a software and tech oriented company with enablement embedded wherever we can. Whether it is trust related embedded embedding, whether it is, you know, any kind of credit related embedding, any kind of payment facilitation.
But we ourselves do not intend to do any sourcing or delivery or return because the categories are enormous and it is not feasible to go that way. So we are continuing to tune product market fit for buyers so that we can generate as many buyers as possible. As soon as that happens, I think we should be able to now get earlier about a year and a half back. I think there were problems with the quality of the inquiries also and there were problems with the competition also. And I had addressed this in earlier quarterly calls that now the competition side, the localized inquiry side, the quality of the inquiry, the intent of the inquiry, all of that is solved.
Most of the suppliers are happy with the the number of inquiries that the quality of the inquiries that they are getting. Now if we can double the inquiries, I am sure we can double the customer count from here. Thank you.
Anmol Garg
Understood. Secondly, wanted to understand that there is a slight reduction in our advertisement as JNS spend in the quarter. So when can we. When Would we move to 10 crore kind of a quarterly spend in terms of the digital marketing spends?
Dinesh Agarwal
Yeah, we continue to do that. You know the, the little bit of spend that you see reduction from 6 crore to 5.5 or so. That is because there was Diwali the share and we didn’t want to run the ads on the holidays. There’s no point running ads on the holidays 25th. So that’s about it. And secondly, you know, as we are running the ads we are getting confident how to optimize for the cost as far as the scaling goes. I think we are trying to find more and more keywords that can be targeted at the, at the, at the, at the value, at the, at the CPC rates that we are willing to pay.
So we are continuing to see that. Hopefully this quarter we should be seeing a little bit of uptick. But I can’t comment. When do we Plan to spend 100% of that 10 crore budgeted? Every quarter.
Anmol Garg
Understood. And lastly if I look at on a Y and Y basis our total number of buyers have increased almost by 9 to 10% while the unique business inquiries still remain kind of range bound. So whatever the spends that we are making on the advertisement side of things looks like that it’s attracting more buyers. But the supplier, the suppliers and the unique business inquiries by these suppliers kind of remains a range bound. So do you think that maybe there would be a change in strategy in terms of the advertisement spends which will cater towards more supplier additions?
Dinesh Agarwal
These particular advertisements are mostly related to very transactional buyer requirement related. So supplier advertising is mostly on the social media. So YouTube, Instagram, Facebook, LinkedIn. You will find more supplier oriented advertising. You will find more buyer oriented advertising where buyers are actually searching for products such as Google. So both the channels are different for buyer advertising and supplier advertising. And in terms of registered buyers and unique business inquiries, these are seasonal factors.
I think you know plus minus 2, 3% keeps on happening. I think I would be happy to keep focusing on the unique business inquiries.
Anmol Garg
Sure. Understood. And just a bookkeeping one. Is there any impact of new labor code on our business?
Jitin Diwan
Yeah, so we have impact of new labor code. We have taken in penal impact of about 8 and a half crores in P L and after that the net profit ebitda. The number which has come is there.
Anmol Garg
So will this, is this a one time impact or this is something
Jitin Diwan
That is right? This is a one time impact as per mandated by ici. So there was a one time back which was supposed to be taken in books. So we have created a liability and an expense of 8 and a half crores which is a one time package.
Anmol Garg
Sure. Thank you. Thank you so much for answering my questions.
Amit Chandra
Thank you. Next question is from the line of Prashant Kothari from Pictet Asset Management. Please unmute yourself and go ahead with your question.
Prashant Agarwal
Hello, can you hear me please?
Unidentified Participant
Yes, yes Prashant, please go ahead.
Prashant Agarwal
Okay. I just wanted to understand about the unique enquiries. They are growing at a very healthy rate in the last two quarters like 17%, 12% and suddenly it has dropped to 4% growth. YY. Were there any kind of one of factors there or are we losing momentum despite our digital advertising initiatives?
Dinesh Agarwal
I would call it mostly seasonal factors.
Prashant Agarwal
And can you explain what happened? Like what has changed seasonally out there?
Dinesh Agarwal
What changed seasonally in. In terms of quarter three last year versus quarter three this year?
Prashant Agarwal
Yes please. Yeah,
Dinesh Agarwal
Generally you know, speaking holidays here and there sometimes you know, just. Just having one one one additional working layer, two additional working lay also happens. And from Q2 to Q3 it is always lower. If you see historically also, but Even if to Q3 you are right that it was growing at 14 15% but now it has come down to 7%. Because in those holiday days we didn’t even advertise. So earlier in the Q1 and Q2 we advertised all the 90 days. In this particular quarter we advertised only for 75, 80 days.
That’s why you see the advertising expense also lower by 50 lakh rupees or so.
Prashant Agarwal
Okay. Okay. And how are the churn levels now?
Dinesh Agarwal
The churn levels continue to be same. You know there is not much change that we. So if you remember we started doing these changes in the product side especially supplier side product changes that we started doing sometime around November, December, January, February, March. So I’m. I’m expecting that any annual display of the churn would be available sometime around April, May, June, not before that.
Prashant Agarwal
Okay. And so just I noticed that you stopped reporting the total traffic data. Was it just an omission or is it.
Dinesh Agarwal
I. I mentioned it last time also because currently the bot traffic is coming from everywhere. The whether it is, you know, ChatGPT bot and there are hundreds of now LLM bots, search engine bots, new browser bots, agentic bots. So the traffic trying to identify the actual human traffic versus bot traffic. You know it was years of Google and being monopoly that systems had become stable enough to identify what is the bot traffic and what is not. Nowadays there is so many new crawlers are coming like this parallel web exa, those kind of things.
So I guess this traffic is moving very radically and that’s why we are. I told you last time also that we should be removing it. So we removed it.
Prashant Agarwal
Okay. And one last question sir. When do you think you will feel confident to accelerate on the addition of new paid suppliers?
Dinesh Agarwal
I. I’m not able to comment on that. I think I will continue to focus on providing better quality and better quantity. As soon as it starts to trend to 3/4 in one one single direction then you will see. However, if you see this particular quarter we have reversed from a sub 10% growth collection growth over the last 45 quarters to about 13 14%. So I think there is some positive that I can see. But has that resulted dramatically into any kind of churn parameters? And until the churn parameters become better I am not in a position to even invest dramatically on the gross edition.
Prashant Agarwal
Okay, sir, thank you very much.
Amit Chandra
Thank you. Next question is from the line of Anirud City from Solidarity Investments. Please unmute yourself and go ahead with your question.
Anirudh Shetty
Hi, thank you for the opportunity. So just a few questions. So I would like your comments on just the ARPU growth company level and you know, for the top 10% customers, just over the last three quarters or so it seems that the pace of growth, you know, has seen a bit of a slowdown. You know in Q1 FY26 it was 9% growth, you know, 7%. Last quarter it’s come down to 6, you know, similar trend for top 10% of customers. So. And you know you mentioned you all have taken a price hike. So if you can just share more color on what’s happening over there.
Dinesh Agarwal
I don’t think I’ve always guided 7 to 6 to 8% on the ARPU and you know top 10% are PO are at 9 to 11% and that is how it is going. Yes, there could be, you know, certain when the customer count was not growing at all then the ARPU growth was higher. And so ARPU growth is now coming in line to the long term trend of 6 to 8%. I don’t think anything different was told.
Anirudh Shetty
And our collection growth has been quite strong. It’s been 14%, you know, well ahead of what we are getting in terms of revenue. So is there something what has been the delta over here in terms of what explains why collection growth has been faster than say arpus and you know your revenue collection revenue growth overall?
Dinesh Agarwal
No, it’s the same, you know, 9%. Yeah. 6% ARPU growth and you Know how much is the customer growth? 8%. 8% is the customer growth.
Anirudh Shetty
Okay. There are no one offs in that number. Right. So this is like a good normalized growth rate to expect.
Dinesh Agarwal
Yeah. So you know, if you see the revenue side of it, you will, you, you will be able to multiply the collection customer growth and ARPU growth. But on the collection, collection is a leading indicator where collections grew first and then they will go to deferred revenue and then they will go to the revenue. So that’s how they will reconcile. We actually internally maintain two metrics. One is average collection per customer and average revenue per customer. So we, we are able to understand what is the collection growth.
Anirudh Shetty
Got it, got it. Yeah. And just so one final question. The net adds. So essentially, you know, just to understand it more clearly, you mentioned that the churn levels have not changed vis a vis the past. So essentially the gross ads in this quarter, will you be able to quantify what would that be? Is it as I said
Dinesh Agarwal
Last end of last quarter, Last quarter means end of September. In, in the month of September we had taken a price increase. So October, November, December was the first quarter full quarter where the price increase was affected. Even January, February, March, we are probably recovering. So I think gross addition should be coming to natural numbers sometime around April, May, June. So one more quarter of maybe plus minus zero customer addition you can expect.
Anirudh Shetty
Got it, Got it. Great. Well thank, thank you for answering my question. Sir.
Amit Chandra
Next question is from the line of Nikhil Chautri from Nuama Nikhil. Please unmute yourself and go ahead with the question.
Nikhil Choudhary
Hey, thanks for the opportunity. First question on gross addition side. Sir, you mentioned in one earlier in your remark on one earlier question that there are enough supplier to target. Right. If you know if we have so much large supplier base which we can target then why gross addition will get impacted despite of price hike. We should be able to get a higher dose addition if we want to, right?
Dinesh Agarwal
Yes, we will, we will, we will be able to get just that. Every time you change some 500 rupees, 1000 rupees price, the sales team takes a little time to adjust to it. There’s no, no problem theoretically.
Nikhil Choudhary
Got it. Got it sir. Second thing on this standalone collection growth, so you say standalone correction growth increased to 14% compared to 8 to 10% what we have been seeing since last few quarters, how sustainable this mid teen growth is and what led to this acceleration from last quarter.
Dinesh Agarwal
So as I said to some extent I think the better gold and platinum monetization led to some Better average collection per customer. So maybe half a percent recovery on the renewal rate and better collection. However, you know, at least let it repeat for one or two quarter and then we can say that this is a trend. Otherwise you know 1 off 14%. I think let’s not become very happy about it, but I think we are cautious. We are targeting even JFM quarter to be similar. But let’s see.
Nikhil Choudhary
Got it. Sir, your comment about this higher renewal rate, does that mean that we saw lower churn in gold and platinum this time compared to previous quarter?
Dinesh Agarwal
So as I said it is, it is too little to quantify.
Nikhil Choudhary
Got it, got it. Just last one from my side you made a comment that we might see lower churn from April, May, June. What gives you confidence? Is there some behavior you are noticing in annual supplier? Maybe they are more active on the platform, they are consuming, consuming more lead. And second, are you seeing some let’s say change in churn especially for silver monthly is. Is there is some activity there? Yeah. So monthly
Dinesh Agarwal
Is still not. Not recovering monthly because I think there is a two, two separate behavior that we found why somebody takes monthly and why somebody takes annual. So one obviously somebody takes a monthly because of the affordability reason that he himself has a cash flow problem and wants to pay monthly. And the second is he wants to try the platform and he has not made up his mind that okay Internet I want to jump in. However, somebody who comes in with annual subscription of 32,000 rupees he1 he doesn’t have that kind of a cash flow problem and secondly he has made up his mind that he want to try definitely an animal.
So in the annual the churn rates are always a few percentage points lower than the monthly. So we are, we are hoping that the annual retentions would improve a little bit. But in the monthly we have not seen any despite respite. If we would have seen I would have given you indicator that okay monthly is improving so will annual improve.
Nikhil Choudhary
Got it, got it. That’s it for myself. Thank you. Good luck for coming.
Unidentified Participant
So we have a question from the chat menu. The question is from Mr. Devang Patel. The margin, some of the buyer traffic is moving from Google search to AI search. Given our predominant reliance or Google search for traffic, how do we see this. As a longer term threat to our. Business model and what are the measures are we taking to tackle it?
Dinesh Agarwal
See two, three things. One, every time a newer technology and more pervasive and more useful technology comes it overall improves the time means if earlier x number of people were only using Google. Now the total number of people that will use either Google or Gemini or chat chat GPT would be higher than X. So it it actually expands the time. Anyway. Now within that is Google going to you know everybody. Many many different publisher companies are facing stagnation in growth of traffic coming from places like Google more.
So where there is a lot more research required we I have heard stories around you know where where there is more research required people do go to you know AI search. However where there is a transactional unique content discovery people continue to go to the search. Having said that if you go to a Google Gemini or if you go to Grog India Mart features, well even in those searches however currently those are not giving directly blue links but they are giving like a reference within that within the answer they are giving reference that this answer has come from here.
So we are getting links but this is a general problem. I think we need to rely more on our repeat traffic and that’s what we are working towards. Currently our repeat traffics are running almost all time high at 58 59% repeat inquiries.
Unidentified Participant
We can go ahead to the next question.
Amit Chandra
Thank you. Next question is from the line of Swapnil from GM Financial. Please unmute yourself and go ahead with your question.
Swapnil Potdukhe
Hi, thanks for the opportunity. I have two or three questions. The first one is on the can you just quantify the increase in silver category pricing that you have been mentioning? What was it earlier and what is the latest pricing that you’re offering to the suppliers?
Dinesh Agarwal
Earlier it was rupees 3000 per plus tax on a monthly basis and 28500 rupees plus tax on an annual basis. Now it is 4000 rupees plus tax on a monthly basis and currently it is 35,000 rupees. But currently we are giving some discount of 3000 rupees. So it is 35,000 rupees minus discount running 3000 rupees or 32,000 rupees plus tax on an annual basis.
Swapnil Potdukhe
Got it. My follow up question to that is like, given the quantum of increase is quite steep, do you think it was the right time to take this price hikes? Especially at a time when we have not been able to get the proper control over churn rates.
Dinesh Agarwal
I mean we as a company have taken this decision after enough discussion and enough pros and cons. So we obviously think it was the right time after many many years. And we also discussed that whether we should go from 3,000 to 3,500 and then 4,000. But the sales given the size of the sales team and the amount of time it takes to absorb whether it is. And I and we did a lot of survey in the market. Most people said it didn’t matter to them whether it was 3,000 rupees or 4,000 rupees. People said it matters either it worked or it didn’t work.
So I think yes, you are right, some fence sitters might actually churn out because of that. But in general those fence sitter anyway will churn out one month later. So it was a well discussed and debated step taken by us. So I mean I’m not, I’m not sure whether it is right or wrong. I mean it’s a very subjective decision to say whether it is right or wrong.
Swapnil Potdukhe
Okay. I mean can you, can you help us understand how the churn rates would have moved from the previous quarter to this quarter? Because this was the first quarter of full price hikes and especially for the silver category suppliers, was there a slight increase?
Dinesh Agarwal
It doesn’t apply to renewables. Renewals continue to happen at previous prices. Only the next time renewal will come that they, they will come at the newer prices. So if somebody had taken a 2,500 rupees monthly subscription and continues to run, he is still running at 2,500 rupees a month. So either somebody breaks the subscription in between, then comes back, that’s when the new prices apply. Or if somebody is on the annual subscription, when his next year subscription will come, that’s when his new prices will apply.
Swapnil Potdukhe
So will it be fair to say that the full impact of the price hikes, right or wrong, we will get to know maybe six to nine months later, that is when we will be in actual position to understand whether it worked out.
Dinesh Agarwal
Yes, sir.
Swapnil Potdukhe
Okay. Okay. Now coming to, I mean you said in the past that one of the challenges in increasing the supplier suppliers was the quality of business inquiries that these suppliers used to get and some of them were not happy that led to some incremental churn. But do you think the way our sales teams approach the suppliers there could be some improvements on that needed on that side also? I mean have we done some analysis on that side? I mean that the, the way our pitch would be to these suppliers and.
And obviously
Dinesh Agarwal
There is also some improvement possible. It is when it comes to sales, yes. Better qualification, better presentation, better convincing, helps when it comes to servicing and chair, more enablement, better CRM, better training also helps. And we continue to work on both sides. As I admitted in five quarters ago that until four, five quarters we Were actually thinking that it is purely and purely sales and service execution problem. However, when we went, I myself went to the, you know, customer meetings and now I have met almost 100 customers myself.
There were small, small things that customer were worried about or they were getting irritated about and we found few errors. Also there was few, you know, blind spots in our product because something which was working, working for a long period of time we tightened. So I think it has helped and now I can, when I go and see and when we see the leading indicators, I think our engagement levels have improved, the bailee sold ratio has improved, the irrelevancy feedback has improved. So many of those have improved.
Nowadays more complaint is how, how do I get more inquiries? I’m, I’m unable to get catch this violin. So that gives me some confidence that there was some problem. But yes, sales and service can be definitely improved and AI is now helping us put the CRM context in. So we are trying to, trying to find if we can help some copilot on the servicing side where the AI can suggest the action of a meeting or action of a call. So I think those are the things that will help us improve the sales. Apart from training and training, how do I enable a normal salesperson?
Because having, having said that we will do training, it’s still a high attrition role. You know, field sales and servicing or tele sales and servicing is a high attrition role across the industry.
Swapnil Potdukhe
But my question actually was slightly on the side. Like have you considered any changes on the top management side? You know, people leading the, the sales vertical from that side? I was, I mean, is, is that a solution to the problem? Is, is one.
Dinesh Agarwal
No, I don’t think so. I mean, I, I mean if you look at our leadership team for the last 15 years, they have done great job and even this particular quarter, I think so. I think we have a very good team and I would encourage any of you to meet our leadership team at different places, regional teams and there is some, you know, performance level rotation, job rotation and churn that continues to happen even at that level. So we do take action if certain particular locations or certain particular verticals are not performing well.
But if you’re suggesting that you know a lot of churn at the top level in the business, I don’t think that is the problem.
Swapnil Potdukhe
Got it sir. Thanks a lot for taking my questions and all the best.
Amit Chandra
Thank you. Next question is from the line of Amit Chandra from HDFC Securities. Please unmute yourself and go ahead with your question.
Unidentified Participant
Hello Am I audible?
Unidentified Participant
Yes.
Unidentified Participant
Yeah. So thanks for the opportunity, sir. Most of the questions have been answered but just to get a clarity to mention about the attrition thing has been stable. But you know, like despite of that we have seen the increase in the collections which was pretty strong. So is it that the existing customers are opting for more like multi year packages and expanding their existing packages to more from regional to more wider packages. So that is also leading to kind of collections growth despite the additions being muted.
So this is one and also in terms of the arpu, is it now the company is getting tuned to more flagon like milking the existing customers or enhancing the value for the existing customers only or how do, how to see. The. Overall strategy here?
Dinesh Agarwal
Yeah, so as I said in the earlier answer, also the 1314 collection growth is obviously the number of customers multiplied by the average collection per customer. Now within that, if it’s everything small, small that works together, at certain places it is a higher upsell. At certain places it is the higher multi year renewal. At certain places the renewal itself has improved in the gold and platinum. Now coming to your second question, whether we are tuned to higher ARPU and these two are what they used to go hand in hand.
If you need a 20% plus growth, if you want to target a 20% plus growth rate, ideally speaking the company should target 10% coming from customer addition and 10% coming from ARPU addition. I mean it could go from 5 to 15. But I’m saying anywhere between. If you want to get all of the growth coming from arpu, it might get difficult. If you want all of the growth coming from customer addition, it might be difficult. The second part is that each, each segment plays a different role. At India Mart, the silver customer brings the buyer side leadership because it gives you the availability of everything and anything on India Mart.
So that’s how you can say or any product is available or cheapest prices available. While the ARPU growth at the platinum side, which drives the ARPU growth, that brings all the profitability. So it is if you just leave one lever, either you will lose on the top line or you lose on the bottom line. So we have to balance in the long run both of them. We can’t leave it on one side.
Unidentified Participant
And you know in the last some of the calls you mentioned that you know, change in attrition in the silver monthly or annual bucket might lead to increase in the collection. So is it fair to assume that say like if the addition level comes to normalized level, maybe in the next one or two quarters, maybe we can 3, 5 to 6% more increase in terms of the collections growth from the current 14 to maybe 1718, which you know, we were seeing two years back when the attrition was normalized. So is the maths still similar?
And now the second question is that obviously you mentioned about the sales thing that we have been trying to do and in terms of training, so apart from the sales, the other very important aspect is the technology because from that we have obviously it is getting upgraded. But do you think that the platform needs a very severe upgrade in terms of the way the things are handled in terms of business inquiries or in terms of the interaction it is having with the buyers and the sellers that.
Dinesh Agarwal
That actually needs a serious upgrade?
Unidentified Participant
Yeah,
Dinesh Agarwal
There’s a huge opportunity today in terms of upgrading the platform and in many ways, whether it is user interface, whether it is user experience, whether it is multimodal, whether it is multilingual, whether it is instead of search, a chatbot. Also, I think the earlier the trust was trust indicators were mostly direct. Now with AI you can do a lot of indirect ways of creating internal trust score, preventing any kind of suspicious activity. So I guess content moderation, every, every aspect today, given the technology has taken and technology has enabled very, very nicely in the last year especially, it has become within reach of everybody.
I mean just take an example of voice AI today, almost 80% of our buyer interaction which used to happen on a normal call have already been gone to AI Bot VoiceBot and they are performing better in terms of quality and better in terms of productivity. So I guess whether it is off platform, whether it is content, whether it is user experience, everywhere, world over, every, every technology platform, every UI platform will require significant upgrade. And we are cognizant of that fact. And we have always been ahead, you know, very good user of the technology.
We started Internet portal in 1995. So that will give you some glimpse of future that we can see.
Unidentified Participant
Yeah, no, no sir. So that has been really a great journey. But why I’m asking is this and because I know for several years we have seen the user interface typically being the same, we have not seen a very major upgrade. So where we are in terms of the upgrade journey, if you can give some idea, and also in terms of the internal technology team, how the internal technology team functions and things,
Dinesh Agarwal
There are two things. One is the look and feel that you see, maybe look and feels a little dated. And I take that feedback. I mean if you really look at the Microsoft Excel in 1992 and today, they are the same but the great functionality. So there is nothing much that has changed on Google or Microsoft Excel in last 20, 30 years. It is the substance that gets changed. Having said that, feedback taken. We will upgrade and uplift the design and, you know, design and feel. However, the technology slide is in front of you.
You can see there is a lot of changes currently going on and we are very proud of our own technology platform. You just see the site speed that we open and the complexity of the things that we do. We are, we are very proud that, and we do benchmarking with our technology. Our technology platform is equivalent or faster similar to Amazon.com our security levels are 96% which is even 1 point higher than Amazon. So I think we continuously benchmark ourselves with Google and Amazon of the world.
Unidentified Participant
Okay, sir, thank you. And all the best, sir.
Amit Chandra
Thank you. Next question is from the line of Shum Segal from securities Investment Management. Please unmute yourself and go ahead with the question.
Unidentified Participant
Shubham, please go ahead.
Unidentified Participant
Hello, I’m audible.
Unidentified Participant
Yeah, you are audible. Yes.
Unidentified Participant
Thanks for the opportunity. My first question is could you share the typical progression of the paid suppliers from silver to gold or platinum tiers? And additionally, I just want to understand how has this trend changed in the recent one or two years compared to the past years. So due to the churn, how this trend has changed and if you could just share a typical progression in annual basis, how many, you know, suppliers we expect from the silver category to get upgraded?
Dinesh Agarwal
Yeah, so typically historically 15 to 20% customers from silver move to gold. From gold, another 15 customer typically move. To. You know, platinum. No, 10 I think. So nowadays, ever since the renewals have dropped, most of the upsell has dropped. So, you know, 80% of drop will come from the upsell because if, if they were to, if the renewal was higher because most of the upsell happens at the time of renewal, when the people come up for renewal, that’s when the upsell happened. Since the renewal itself has dropped by 10, 15% I think the upsell itself is currently trending at 8, 9%.
So from 17, 18% upsell, which used to trend anywhere between 15 to 20% that is now trending at, you know, 5 to 10% depending upon the different industries and different buckets.
Unidentified Participant
Okay, got it. My next question was in the previous calls you had mentioned that there is still a significant headroom for ARPU expansion among the enterprise customers that we have given their large marketing budgets. So could you help me quantify this potential and what is the estimated ARPU ceiling For this segment, the enterprise segment over the next two, three years and currently what would be the percentage of IndiaMART’s current revenue or paying supplier base which would be made of these enterprise customers?
Dinesh Agarwal
We have about, About 100 to 200 odd customers in the enterprise segment. And depending upon I’m called, when I’m saying 100 to 200 means those who are platinum and enterprise both because there might be certain platinum customers who have been using our Gold service or using our Silver service. Now from there, if you, if you, if you see the top 1% of their customer, you will see 2200 customers currently are paying 11 lakh rupees per per annum. So top 2200 customers and within that, if you see the Pareto, this, this can at the highest level we have customer who end up paying even upwards of 50 lakh rupees.
So this is the average of top to 2211 lakh rupees. So if you see the median and above you will see that it is ranging from 5 lakh rupees to 50 lakh rupees or so.
Unidentified Participant
Okay, so just a follow up on this. So like and actually regarding the ARPU growth, so you mentioned that the normal growth that we expect is around 6 to 8%. But in the past few quarters when we were getting accelerated ARPU growth, you had mentioned that it is due to the new category and differential pricing that we have involved in our system. So I just wanted to know like either that category pricing difference has it just normalized in the system? That’s where now the ARPU growth will normalize as well.
Or could we again see the accelerated periods of ARPU growth?
Dinesh Agarwal
ARPU is driven by revenue and revenue is coming from deferred revenue which typically reflects 3/4 ago collection trend. So if you want to see the current quarter ARPU. So if 3/4 ago my collection was 9%, so is ARPU was, you know, out of that. If it was 3% was customer growth, 6% is ARPU growth. That ARPU growth you are seeing today. Either you see customer and collection and average collection per. Because average collection per user is not a standard matrix in the market. Otherwise if you see the ARPU, it will always be a 15 months, you know, moving average.
Unidentified Participant
Okay, got it. Thanks for the clarity. Just last question. So on our platform we do have different tags for different, you know, industries. Like a tag known as industry leader or leading supplier and that’s for the specific categories or the searches. So is there like a cap on the number of these tags that we have the industry leader and leading supplier. And if there is a cap, does this help in, you know, retaining the customers? Because if they might go off with the tag or you know, like remove the tag, that tag would be handed over to someone else.
So is there a cap and does it help in retaining any?
Dinesh Agarwal
It comes at both. If I, if I have limited number of tags then I limit my time because there is a limit to what a single person can give. But if I have unlimited. So initially when we launched the industry leader program I think we had three maximum thing. But over the time the demand in the market was that, you know, I can’t pay you 30 lakh rupees for it being industry leader. But there are three people who are willing to pay or five people who are willing to pay. So we did, I think we have only one product which is the category leader or something which is not visible there at the, at the tag.
But other than that all the products are available with the demand supply kind of thing.
Unidentified Participant
Okay, got it. Thank you.
Unidentified Participant
So we have one last question from the chat menu which we can take probably this is related to accounting products. This question is from Mr. Bhabhav Jain. In our accounting products, can you throw some light on how the products are different from each other or how they complement each other as part of the stack and what is the value addition in comparison to competition like tallies, overbooks, etc.
Brijesh Agrawal
So if we look at the three major, you know, companies within the accounting portfolio that we have, one is busy, second is the upper and third is light keeping. Now each of these companies essentially have a very different target segment. So busy for example starts to do very well in the small and medium sized businesses segment. These are businesses typically who will have a requirement of managing inventory apart from doing basic sales. Who would want to do GST filing? When we come to Vyapar, Vyapar essentially will focus more on the micro size businesses.
These are businesses where billing is essentially the most primary requirement. And these are businesses which are smaller in size. They want to go ahead and work upon billing through mobile app more than just rely upon a desktop based software. When we look at live keeping exclusively focuses on existing customers of Tally who would want to have a browser based and app based access to the data. And work upon that. So Tally does not offer you those opportunities currently and therefore live keeping become extremely useful to about 2 million of subscribers of Tally who essentially would want to access data on browser using a mobile app online.
So each of these companies are targeting different sets of customers altogether and as a whole. Therefore, we see that we will be able to have a significant play in the overall accounting industry segment altogether. Right.
Amit Chandra
Thank you. This was the last question for the day. I would now like to hand over the call to Dinesh Agarwal for his concluding remarks. Over to you, sir.
Dinesh Agarwal
Thank you, ladies and gentlemen, for joining our quarter three FY26 conference call. We have tried to address your queries in the time available, but if you still have any questions, please feel free to contact our Investor Relationship team. Thank you and good evening. Good night.
Amit Chandra
On behalf of India Mart, we thank everyone for joining us on this webinar. You may now disconnect your lines. Thank you.
Abhijit Vikram
Thank you.