CarTrade Tech Limited (NSE: CARTRADE) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Vinay Sanghi — Chairman & Managing Director
Aneesha Bhandary — Executive Director and Chief Financial Officer
Analysts:
Aryan Sumra — Analyst
Sachin Dixit — Analyst
Siddhartha Bera — Analyst
Diya Brijwani — Analyst
Nishit Jalan — Analyst
Amit Agicha — Analyst
Anjali Bajaj — Analyst
Arpit Shah — Analyst
Aditya Yadav — Analyst
Vijit Jain — Analyst
Deep Shah — Analyst
Shrenik Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Car Trade Tech Limited Q3 and 9 months FY26 earnings conference call organized by MUFG Intime India Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator pressing star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aryan Sundra from MUFG in time.
Thank you. And over to you, sir.
Aryan Sumra — Analyst
Thank you. Good afternoon everyone. I welcome you all to the Q3 and 9 months FY26 earnings conference call for Cartridge Tech Limited to discuss this quarter’s financial and business performance. We have from the management Mr. Vinay Sanghi, Chairman and Managing Director Ms. Anisha Bhandari, Executive Director and CFO. Before we proceed with the call, I would like to mention that some of the statement made in today’s call may be forward looking and may involve risk and uncertainty. For more details kindly refer to the investor presentation and other filings that can be found on the company’s website.
Without further ado, I would like to hand over the call to the management for the opening remarks and then we can open the floor for Q and A. Thank you and over to you sir.
Vinay Sanghi — Chairman & Managing Director
Thank you and good afternoon to everybody and welcome to the Q3 FY26 earnings call. I’d like to start by slide 3 which has been shared on the investment deck. We talked about the company over the last three years. As you can see here, over the last three years from FY23 to FY26 if you look at the company the revenue CAGR has been 32% EBITDA CAGR has been 112% and the profit CAGR has been 83% over three years. So you can see the consistency in performance and that’s why I want to bring it out quarter after quarter, three years, almost 12 quarters.
And you can see the consistency in the company’s delivery and performance and the execution capability. If you look at the center block it shows that our cash reserves have gone back to 1,145 crores. And the first time you can also see the return equity reached double digits which is a very very strong business performance from the company from where it was. And if you look at the last block where the shareholder value, if you see the EPS CAGR has been 92% over the last three years. And of course the share price is up 94% in the last year during this phase.
So the numbers to look for are the PAT CAGR 83%, the EPS CAGR of 92% and the share price CAGR 94% over the last three years. If you look at and we move to the quarter or the Q3 results and you go to Slide 4, you see Car trade has achieved its highest ever revenues at 228crores in any quarter ever in our history. EBITDA has gone up by 56% to 78 crores. It’s by far our highest ever EBITDA. Not only a biased EBITDA by far, it’s also almost 15 crores more than the previous quarter. EBITDAs are 23% even sequentially from the previous year.
Previous quarter. So 56% year on year growth, 23% sequential Q1Q growth to 78 crores. We’ve been talking about margins for many quarters with you and you can see now margins have gone up to 37% which is getting best in class in the country now. And it shows the unit economics and the leverage we have in our business. If you go to the revenue EBITDA exponential growth and profit after tax has come at 62 crores which is up 35% year on year. And this is primarily due to an extraordinary item of the labor code provision as per the new regulation being provided of six and a half crores during the quarter.
Otherwise profits will of course be up by 49%. If you look at after you include the labor code impact, we continue to have, As I said, 150 million users yearly users in all our three platforms. The consumer group has grown by 27%. EBITDAs are 55% and of course we achieved a 43% margin on EBITDA and the consumer group which is of course now getting at a very, very high rate of margins. And we’ve talked about how we had the unit economics and the leverage in this business over the last few quarters. The remarketing business profit is up by 68%, revenues up by 12%.
EBITDA is up 23%. And as well as well our margins in the remarketing groups are 30% now. OLX is the highest ever revenue in history in this quarter. It’s up 18%. PAT is up 37% in OLX and OLX also now reached a 37% EBITDA margin ratio. If you look at Slide 5, you can obviously continue to be the number one automotive platform used, product platform, vehicle auction platform in the country traffic is up to 85 million. Mausoleum during the quarter 95%. Organic traffic continues. Vehicles auctioned at the rate of 1.9 million vehicles a year. We talked about the revenue at 2228 crores, its highest ever in our history.
Adjusted EBITDA is 101 crores. It’s a cash proxy. It’s the first time it’s lost 100 crores in a quarter. So you can say 101 crore of cash generation during the quarter. PAT is 62 crores that I said the PAC would be at 68 crores if not for the labor code. And a cash balance continues to be 1,145 crores. As we’ve talked earlier, if we go to slide six and look at the consolidated results of the company, revenue is up 18%. Operating revenue is up 19%. EBITDA is up 56% margin out here on a consolidated basis at 37% up from 33% last quarter sequentially.
So we see four basis point increase in margins sequentially just quarter on quarter. And from last year’s margins of 28% we have landed up at 37%. PBT is up 58% before exceptional items PBT post exception are up 46% and PAT is up 35%. If you look at the nine month results of the company revenues up 24%, EBITDA up 77%. The nine month margins come at 32% and the pact is at 74% up. PBT is up 87% up for the nine months. So you see the growth in both margins, profitability of course and the revenues over a nine month period which shows the consistency in the performance of the company.
If you go to slide 7 look at the consumer group for the quarter revenues up 27%. We spoke about EBITDA at 55%. EBITDA margin has reached 43%. And even sequentially if you look at ebitda is up 6 crores just in this one business. And margins have gone from 40 to 43% sequentially over last year. Margins have gone from 35% to 43%. PBT as I said is up 43%. And if you look at the nine month numbers, the consumer group has done extremely well with the 32% growth in revenue, 106% growth in EBITDA and a 74% growth in PBT with a 51% growth in PAT.
If you look at the remarketing business there’s a 12% revenue growth and a 68% profit growth during the quarter margins for the first time crossed 30% in the remarketing business. And if you look at the nine month figures, 22% up in revenue, 57% increase in EBITDA and an 80% growth impact for the year. So remarketing business has had a very good year in the first nine months of the year. If you look at olx, OLX has had its highest ever revenue any quarter. It’s crossed 61.7 crores, 58 crores in operating revenue which is up 18%.
Profitability or EBITDA is up 70%. OLX margins will be 37% now and PAT is up 37% and PBT is up 73%. There is a tax now. OLX has exhausted its, you know, carry forward in its tax shelters and of course now in this quarter taxes being paid in OLX as well. But yes, PBT is up 73%. Look at the nine month data, OLX’s EBITDA is up 63% and profit after tax is up 92%. So this is a very, you know, been a very strong quarter for us. We feel very, very optimistic about all the three businesses.
Just to highlight, all three businesses achieved the highest ever revenue. All three businesses have achieved the highest of our margin. So we feel very, very optimistic. Business has been very strong in all the three businesses. We are even more optimistic about the current quarter Jan to March and feel very optimistic that obviously our numbers will get better and better from here. The business or the market seems to be especially the new car industry or the used car industry or the used product industry seems to be growing and naturally we feel optimistic about the current quarter and the quarters coming ahead.
This is what I have to say. I’m happy to take any questions now and clarify all your questions and doubts.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembled. The first question is from the line of Sachin Dixit from JM Financial. Please go ahead.
Sachin Dixit
Congratulations on.
Vinay Sanghi
Thank you, thanks.
Sachin Dixit
My first question is with regards to this ufa, right? So there is obviously some chatter about how it can potentially impact Indian authorities industry. Do you have any views on that if anything like how does it impact car trades, consumer businesses at all?
Vinay Sanghi
Yeah. Are you talking about the EU 40% tariff on vehicles.
Sachin Dixit
Yeah.
Vinay Sanghi
Is that the question?
Sachin Dixit
No, no, no, no. This mother of all trade deals that you have signed with EU in terms of free trade agreement.
Vinay Sanghi
I’m not obviously studying great detail. It’s only been, you know, a day old. But. But you know, the one thing which might affect or help the consumer group are two things. One is if, you know, tariffs or duties on imported European vehicles comes down, it could lead to further demand in the new car industry which of course could benefit the consumer group. And the other could be there could be opportunities to bring other such vehicles in directly even by it could be a business opportunity for the consumer group considering the reach of consumers and the distribution of Cartech tech as a group. So obviously we’ll try to examine if there are opportunities where consumers here wanting cars from the youth could use platforms like Carwale or others for that need.
So it’s something we’ll have to watch and see what the potential of this is. But it’s too early to say at this point.
Sachin Dixit
My second question is on OLX business side. Obviously you did highlight in the previous earnings call that momentum is ticking. We saw that we improved growth rate by roughly 150 basis points. If I look on a Q and q basis, 16.6 into 18.1. Do you see further momentum here? And on the same line on cost side we saw that actually both employees and other costs decline in qq. What is resulting in this decline? If you can highlight.
Vinay Sanghi
Yeah, you’re talking about OLEX cost or overall cost with you? Yeah, we definitely see the growth rate of Olex going up from the current growth rate in this quarter. So we do feel that you will see that even further and more amplified the growth rates going up in olex. Number one, we feel very strong about the business, both the automotive and the non motor side of it. So yes, you will see in our opinion a higher growth rate on olx. The revenue side costs are I would just say stable. There may be some minor fluctuations on manpower, other costs, but generally stable.
We don’t see any real serious decrease in costs or we don’t see any increase in costs either. They’re just stable. I would say no legs. Understood.
Sachin Dixit
Just one final question on the new auto side, if I can take that. Right, sure. Last quarter obviously we had a billion 37 odd percent growth on this business. This quarter that is top to 27 but still very, very healthy. No doubt there must have also been some basis that would have played out compared to CQFI25. How do we look at this ahead, do we still believe this is roughly a mid-20s to maybe a 30 sort of a growth or there is potential for this to maybe inch down further by let’s say a few percentage points.
Vinay Sanghi
The growth rate actually the first nine months is 32%. Right. In this business there is a bit of base effect of last year to Q3 to Q3 the previous year, but generally it’s 32% over nine month period. We see no reason by that. We feel quite confident that actually the new car industry in the last two months has done extremely well. And like we said, we are obviously beneficiaries of the car industry itself. So we do see that definitely sustaining the growth rate not really give guidance whether it’s higher or lower. But yeah, generally we don’t see any reason for the growth rate to come down at all.
I mean we feel very optimistic about the new car business.
Sachin Dixit
Got it. Thank you so much and all the best.
Vinay Sanghi
Thank you. Thank you. Thanks. Thanks.
operator
Thank you. The next question is from the line of Siddharth Bera from Nomura. Please go ahead.
Siddhartha Bera
Yeah, hi sir. Thanks for the opportunity. Thanks sir. First question is again on the OLX side. I mean we had talked about the multiple initiatives from the growth side which we had taken in quarter three across allied buyers and two or three more product initiatives getting rolled out. So can you just talk about how has been the acceptance, what percentage of our user base have accepted that just to understand sort of how the growth momentum should pick up in the coming quarters. So some more details on that.
Vinay Sanghi
Yeah, the Elite Buyer actually done extremely well in the last quarter, was really commercially fully launched in the last quarter and we feel very good about the adoption of the platform of the Elite Buyer program. We also feel that this will become a very large revenue opportunity for OLX in the many coming quarters and years. We’re already seeing a very high traction in the last 30, 40 days of the early buyer program. And it will, in our opinion, you know, as I said in the coming quarters, impact the revenues very favorably. Number one, other products like Verification, like we said, is likely to be launched in the next 30 days or so, which are completely a new product to further enhance customer experience on trust and safety on the platform.
So that will get launched sometime in the next 30 days. So we feel optimistic about that as well. But the growth rate continues also to be in existing products on B2C charges for dealers or C2C consumer charges, etc. Etc. So overall feel very optimistic about the revenue potential of OLX and The growth rates which are going to come in the quarters ahead.
Siddhartha Bera
Got it sir. But if I look at the visitors, monthly visitors for olx, it’s it sort of has seen some softness compared to last quarter. Is it something more seasonal or anything more here to look at?
Vinay Sanghi
There was a very slight seasonality I would say in September and you know, September a little bit of, you know, end of December. But generally traffic has been stable of olx. User engagement has been stable. Traffic has been stable. Very, very stable.
Siddhartha Bera
Got it sir. And so lastly on this margin profile for the olx, I mean we have seen sort a lot of cost benefits also coming in in the current quarter. So is there any one to one thing, one term cost thing which has come or do you think this 35, 36% margins which we have done for the quarter, I mean as we see a pickup in growth.
Vinay Sanghi
Yeah, we think the margin will probably improve, honestly. I mean like in all our businesses the leverage is higher, right? I don’t think cost increasing. So if revenue goes up, margin will improve as we’ve said, quarter after quarter in all our businesses.
Siddhartha Bera
Got it sir. Thanks a lot sir. I’ll come back.
Vinay Sanghi
Thank you. Thanks. Thanks.
operator
Thank you. The next question is from the line of Dia Bridgewani from White Whale Partners. Please go ahead.
Diya Brijwani
Hi, can you hear me?
Vinay Sanghi
Hi, I can hear you.
Diya Brijwani
Yeah, yeah, that is hard to care. Just a couple of questions. First one was on, you know, during the quarter we pursuing the Cardi Kodi and then kind of, you know, did not pan out. So can you just maybe spend a few minutes just explaining the rationale, thought process and how we walked away from it?
Vinay Sanghi
Yeah, I think we did announce that we were pursuing the transaction and we then towards, you know, after studying it at that point decided that for that specific period decided to put on hold. I think the reasons mostly were around understanding. Obviously the potential in our own business seems so high that we said, listen, is this the right time for that or not? We continue to be very optimistic with the new car industry, which is what the acquisition was about. And we obviously continue to be optimistic about Olex and all other businesses. So the amount of opportunities within the company itself, we felt it is better to hold any inorganic opportunity at that point.
And yeah, that’s one of the reasons why we studied it. And then we said it’s better to put on weight at that point of time. I just want to also highlight in the earnings call that also in our results we have provided some diligence cost which is also factored into the quarter three Results which you’ve seen the results and the margins are after all, some diligence cost has got incurred. It’s in the expenses of the company already accounted. So yeah.
Diya Brijwani
Okay, got it. And then just on the previous question on in terms of the consumer growth, I think you maintained, I mean you spoke that you expect to sustain this kind of growth level that you’ve seen over nine months. I just want to understand a little. Better in terms of the drivers of this growth. You know, I mean, when there’s a slowdown, I guess the OEMs and the dealers need to kind of push more and so they increase the marketing expense. But when you know the industry is going through a better phase, I mean, you know, would that kind of marketing senses sustain? And so to that extent can we still maintain this kind of growth or not?
Vinay Sanghi
So the industry is going through a very good phase. In October, December 1 and also the entire last three months, industry grown rapidly. It’s had unprecedented growth and volumes in the car industry. I just like to highlight that we’re beneficial of growth in car sales. Obviously we will benefit. We’re also beneficial when manufacturing dealers spend more money on digital, which has been a long secular trend. We also benefit car arpu when prices go up in terms of arpus, which means people move towards a bigger vehicle like an suv. So we benefit multiple, multiple ways. We also gain market share because we’re the most cost effective way for a dealer to manage to sell a car.
We have, as I said, also a large, large number of almost all car buyers in the country coming to our platforms. So clearly there’s a dependence and high relevance the industry has towards platforms like Carvalhe and Baikwale or OLED for that matter, for used cars. So in any situation, whether the industries down, which we’ve seen over the last year and a half, or when the industry is growing rapidly, as you see in the last quarter, our growth rates have been maintained and grown further even. So we’ve also shown and disclosed in a previous quarter, the last three year trend of growth where the industry goes up and down.
And we found that irrespective of that car valley out of the consumer group, growth rates have stayed extremely, extremely robust during all those phases.
Diya Brijwani
Got it. So I guess this is more of a structural shift from like maybe offline to digital spend and then within that away from, let’s say Google towards platforms.
Vinay Sanghi
Like it is offline to digital spend. It is growth in the industry, it is growth of arpus in cars. There’s different kinds of cars being sold. Like if you see Today more than 50% of cars sold SUVs. So it’s many, many things altogether. But by and large there’s a big shift to spending on platforms like Carvalhe where the relevance for manufacturers and dealers who spend is very, very high.
Diya Brijwani
Understood. One last question was on the operating leverage. So now if I were to just look at our consumer and OLX, I mean, I think we average around 40% plus margins, you know, how are you seeing like, you know, to Continue with this 25, 30% metric growth rate? You know, I mean, your expenses have pretty much not grown, you know, for the nine months. Is there any kind of areas you need to invest into or will expenses remain at similar levels?
Vinay Sanghi
In terms of meeting expenses are stable, they’re not likely to see any fluctuation or any incremental change at all. So they’re not likely to change. We’ve always said that our margin will keep growing. Right. And I think we’ve reached 37% of the group, 43% in the consumer group. We think they’ll go further.
Diya Brijwani
Got it. So essentially all the growth that comes. Through a very large part of it will continue to pass through.
Vinay Sanghi
That’s correct. That is correct. That is correct. That’s a select. That’s just the nature of the business. Okay.
Diya Brijwani
All right, thanks so much.
Vinay Sanghi
Thank you.
operator
Thank you. The next question is from the line of Nishit Jalan from Access Capital. Please go ahead.
Nishit Jalan
Yeah. Hi, Vinay. Hi. Congrats on good set of numbers. Right. My question is obviously industry tailwinds are there and now that you have studied car business, just wanted to understand on consumer side of the business, do you think a part of the growth is also driven by market share side of the things? Right. How is it kind of, kind of panning out? Right. And while operating leverage will be there in our business for sure and globally, there are companies which makes 50% plus margins also. So is it, is it, will it be incorrect to assume that in the next two, three years, if the growth continues, you could also be a 50% plus kind of a margin?
Vinay Sanghi
Sorry, what’s the last part? I think you’re the last part.
Nishit Jalan
Basically what I was saying was that if the growth rate continues over the next two, three years, these margins could expand from 45% to 50% plus. Basically, what should we look at as the incremental EBITDA margin on the revenues? Right. Because your incremental costs are lower in a way. Right. So how should we look at especially the oil X and the consumer Business because that’s where the benefits will be much more substantial.
Vinay Sanghi
Yeah, two parts. One is the first part which is the growth in the car industry itself. You know, after since reduction of the gst we’ve seen the car industry grow. Our growth rates if you see at 32% were even before the GST reduction took place. So clearly we’re beneficiaries of car growth rates. We also benefit when growth rates have been more muted for the car industry itself. Right. So because our growth rates have been high in both cases. So we see that the reason that is the case is because consumers come to a platform like Carvale or others to fulfill a need of buying a car or finding a car, etc.
Etc. And because of the number of consumers and the relevance to consumers which platform like Carvalhe has, manufacturers and dealers need to be obviously spending more on platforms like ours compared to others. That could be offline advertising, that could be Google, it could be Facebook or other horizontal platforms and also direct vertical competitors because we feel we’re far more efficient than our competitors are. So I think you’re seeing a fact of that, that we are gaining market share, number one. Number two, also a factor of industry level growth and move towards digital. And like I said, number three is also a product mix where as you see in the last three, four years in India there’s a huge shift towards SUVs by itself.
So the ARPU’s of cars have basically gone up as well. All these factors do matter. And you know, clearly our job is to make sure that the consumer coming on our platform, our product and improvements or development cycle continues so that consumers keep coming and you know, going on the platform and that’s what we are focused on. So that’s the first part of the question. The second was of course, I mean over the last 10, 12 quarters we’ve demonstrated to you that costs in companies like this are stable. We see no reason for that to change in the coming quarters.
And therefore margins as increased revenue, a lot of that revenue will go to margin. And I think if you see the last three years margins gone from 9% to 37% as a company, as consolidated company. So I don’t see a reason for that. I think the trend will just continue. Margin will continue to grow.
Nishit Jalan
Yeah, maybe just one follow up. You did talk about that the ARPU going up, Right? So ARPU going up. The benefit is indirect as in the industry revenue goes up and the ability of OEMs to spend more on A and P goes up. Is that the Indirect benefit which comes to you something else.
Sachin Dixit
It does benefit where the car prices. Suppose the average rather than small cars or sedans, SUVs which are higher price sell. It benefits all stakeholders. Right. Anybody in the chain. It benefits.
Nishit Jalan
It benefits because the industry revenue goes up and the ability of.
Vinay Sanghi
The industry, in the industry spend goes up. I would say. Yeah, absolutely.
Nishit Jalan
Yeah, yeah, yeah, yeah. And, and, and sorry, I think you answered it but I missed out on the OLX side. Right. You, you have started to take a lot of initiatives to monetize to elite buyer, elite seller and all sort of things. Sorry, sorry if you have commented earlier, I missed out, but where are you?
Vinay Sanghi
No, no, no. Actually elite buyers in extremely well in the last, you know, quarter for us. We feel very, very optimistic that this will become one of our flagship revenue earners in the coming quarters and years ahead. Number one. Number two, even existing revenue drivers have gone up or changed or improved. UX has improved, customer engagement has improved. The growth rates of course of revenue have grown. We achieved higher 7 revenues but on top of it we feel the growth rate of revenue will go even up further. I mean and margins in lowlifes will also increase further.
We feel pretty confident of that.
Nishit Jalan
And on the used car side of the business right now you are monetizing more from dealer subscription and now very recently elite buyer, elite seller program. Any plans to get into more value added services also like financing or an insurance or a service or some warranty whatsoever. Right,
Vinay Sanghi
because that financing is something we’re working very closely on on a fintech perspective. But like I said, we’ll be a marketplace company. We’re not likely to take any risk or balance sheet risk or lending risk ever. So this is like a marketplace model where we’re working very closely with a couple of very big banks and NBSCs on launching products on used car financing. I think in the next few quarters you’ll see products like that launch for used cars there. Our relevant is very, very high. If you see data which we’ve disclosed in the past where 65% of our used cars sold in India listed on OLEX.
More than a million and a half used car buyers come to every month more than a million of used car buyers come to OLEX and Carvalho together in the last quarter. We also actually earlier this month and we publicly disclosed that as well. We for the first time combined the Carvalhe OLX offering for all dealers in India. So we launched a subscription for dealers which is combined of OLEX and Carvalhet to increase the base for both companies. So there are many, many used card initiatives going on and you’ll see a lot of the results coming in the next few quarters around the used car side of the business, both in fintech side as well as in the core use car business.
Nishit Jalan
Got it, Got it. Okay, thanks for the answers and all the best.
Vinay Sanghi
Thank you.
operator
Thank you. The next question is from the line of Amit Agita from HG Hawa. Please go ahead.
Amit Agicha
Yeah, good morning sir. I’m audible.
Vinay Sanghi
Good morning. I’m in.
Amit Agicha
Yeah. Congratulations for excellence.
Vinay Sanghi
Thank you.
Amit Agicha
With 1145 crore of cash on the balance sheet, how could investors think about capital allocation priorities in the next two years?
Vinay Sanghi
Yeah, it’s a good question. At this point we are also generating like you’ve seen 100 crores a quarter, right? I mean we showed you the adjusted EBITDA number, so it’s a 114, the bank plus 100 crores a quarter of cash every quarter. At this rate, as profitability grows, even the cash generated would grow. We have almost no capex in the company and almost no need from an investment standpoint in our current business all our businesses are high margin businesses so the intent would be of course to look at whether any inorganic opportunities come in the future.
And we’ve been very good at acquisitions in the past. We’ve done multiple successful acquisitions so part of the use, if at all we come across an opportunity would be that and obviously the long term intent would be to return money to shareholders.
Amit Agicha
One more question connected the employees like the Are there any talent constraints in data science, AI pricing models or data analytics that could require higher future investments?
Vinay Sanghi
We’ve actually made a lot of investments. It goes in our operating cost. A large part of our manpower cost is product engineering, design, AI talent, etc. Etc. So a lot of investments are being made. These margins and these costs are after making those investments. We every, you know, we are first a technology company before everything else. So, so this is part of what we do every day. A large part of our team is product engineering, design and AI talent. So we’re building products for Rolex, Karvale, Samil every single day. Every single day. So and new products as well.
We also created Karter Laboratories which builds only new cutting edge products, you know, a few months ago. So, so these investments are done and they’re part of the operating costs in the company.
Amit Agicha
Thank you for answering my question sir. All the best for the future.
Vinay Sanghi
Thank you. Thank you.
operator
Thank you. The next question is from the line of Siddharth Bera from Nomura, please go ahead.
Siddhartha Bera
Yeah, thanks for the follow up. Sir, a quick question on the remarketing business. If I look at the volumes for Cartrade and the auctions, seems that the conversion has dropped a bit compared to the last quarter. Any particular reason what is happening here?
Vinay Sanghi
No, no. It is only in the last quarter and I tell you specifically in the used car industry or the used vehicle industry. New vehicle prices came down in September with the GST reduction. Used vehicle pricing took some time to correct itself. I think it took 2, 3 months to correct because you know, those are more subjective by nature. So a lot of the sellers tend to be waiting back and saying listen, am I going to get a better price? And when they realize that used car pricing has changed forever, then they start selling. So it’s a bit of a delayed process and maybe that’s why you’re seeing a slight conversion difference.
That’s primarily due to price reduction on the new car side which affects and impacts the used car industry as well.
Siddhartha Bera
So this conversion then normal scenario should pick up in the coming quarters.
Vinay Sanghi
Yes, absolutely, absolutely. It’s already better. It’s already better. So yes.
Siddhartha Bera
Okay, okay. And on this growth side for the remarketing also, I think the last few quarters we had seen a very strong growth obviously with the low base. But now going ahead, do you think there can be further acceleration to this or this is run rate we should assume for this business?
Vinay Sanghi
No, I think we should continue to grow. We feel strong about the business and we do believe that normally Q4 is much better than Q3 for this business. So we do feel the growth rates and the absolute numbers should get better.
Siddhartha Bera
Understood. And the last clarification I think you have mentioned about 1.8 crore of due diligence cost in the standalone consumer business.
Vinay Sanghi
That’s correct.
Siddhartha Bera
So that should be there in the console numbers as well, right?
Vinay Sanghi
It’s in both numbers.
Siddhartha Bera
Yes, in both numbers. Okay, sure. Thank you sir.
Vinay Sanghi
Thank you.
operator
Thank you. The next question is from the line of Anjali Bajaj from Nareri Investments. Please go ahead.
Anjali Bajaj
Good morning sir. For giving me opportunity. Other income from all its India business declined in the quarter three compared to quarter two. Could you please explain the key reason for this drop?
Vinay Sanghi
Sure. Anisha, you want to explain this? Hello.
Aneesha Bhandary
Hello. Hello. Hello.
Vinay Sanghi
Yeah, what extent the other income in olex?
Aneesha Bhandary
Yeah, so as we had disclosed in the previous quarter, the quarter two we had a other income right back in OLX which was disclosed in a detailed note in the financial statement itself in Q3. We do not have any Write back which is there, which is why there is a dip in the other income.
Vinay Sanghi
The way to look at it is also the Q3, the normalized other income and in Q2 because the write back was there was a special item in there.
Anjali Bajaj
Okay, okay, thank you, thank you.
operator
Thank you. The next question is from the line of Arpit Shah from Stallion Asset. Please go ahead.
Arpit Shah
Hello.
Vinay Sanghi
Hi Arpit.
Arpit Shah
Hi Vinaji. Congratulations on a super sad number. Great expansion on margins across all businesses. Just wanted to understand let’s say over the years ahead, what kind of incremental revenues now would now straight pass on to profits? Would it be 80%, 90%? How should we look at that?
Vinay Sanghi
Yeah, that’s been the track record. I don’t see any reason why that will change.
Arpit Shah
Got it. And you just mentioned that we’re going to be launching something like an OLX Verified for LRNM buyers in the next one month or so. How big do you think that opportunity would be for revenues going on? Because I believe as I just see for Meta, maybe Instagram, Facebook, that opportunity is about 2 to 3 billion dollars every year in terms of selling Verified subscription. But how do you how big that number could be for any, any sense?
Vinay Sanghi
I don’t give a revenue guidance around it, but it’s a very important product for OLEX and dramatically enhances user experience. It’s very innovative the way it’s been brought out at OLEX and you’ll see it in a few weeks. But we feel very, very good about the product and very optimistic about it. The revenue of course upside will be significant, but we also see that it’s a big, big feature for all users on olex. It changes a lot on how they interact at the buyer or sell on the platform.
Arpit Shah
Got it. And how should we look at the remarketing business growth? Because the growth has accelerated from what was earlier, let’s say a couple of quarters back and it’s now moved to 12% or the margins of course offset for that kind of revenue growth. But how should you build revenue growth for remarketing business?
Vinay Sanghi
I think we’ve had a 22% nine month growth if you look at it, and I think that’s the way to look at it. Sometimes the quarter is a base effect of the previous year. But yeah, I would think of it a lot of the business over a nine month period and the business actually is a good situation, both the retail side and the repossession side. So I see some of these growth is continuing. I don’t see much change in Fact, the markets are quite favorable for, for Shidam Automol as they are for Overx or Kar Valley.
Arpit Shah
Got it. And structurally the classified business, the growth should keep improving now quarter on quarter. How do you think what they.
Vinay Sanghi
I feel OLEX growth rates will go up and I think Consumer group which is 32% in the first nine months already been very strong the growth rate. So I don’t see, I think you’ll see a positive growth rate on from what it is in OLX the 18 and a half will get better in Car Valley. As I said, 32% body growth rate in the first nine months. So I don’t see it’s been very, very strong anyway.
Arpit Shah
And this growth will keep coming despite the margins that we are at. Right. You don’t have to spend a lot in getting that growth like 37%. We don’t see much change,
Vinay Sanghi
we don’t see much change in the cost structure of the company.
Arpit Shah
Got it. Perfect. Perfect. Thank you so much.
Vinay Sanghi
Thank you. Thanks.
operator
Thank you. The next question is from the line of Aditya Yadav from Transient Capital. Please go ahead.
Aditya Yadav
Yeah, hi. Thanks for the opportunity and congratulations sir on a great, great execution. Congratulations to the team as well. My question, so yeah this has been talk of the town but my question was regarding the AI and so there are two parts to it sir. One is, one is there like of course there was talk of threat of inter disintermediation where like the the site visits go down hypothetically where the LLM itself generates the answer to the query of the user. And the second part was the use of AI tech in the within the company itself.
So I would ask you to provide color on both the sides and with the first part, with the first part we are seeing some evolving models globally also where you know they are the, I mean the data owners like us are moving into a licensing agreement with the LLM organization where you are charging a licensing fee of that sort and not providing unlisted access. And we’re seeing some those kind of models evolving and so yeah, I would urge you to provide color on outside the organization and inside the organization. Thank you.
Vinay Sanghi
Sure. The first way we see AI in the group is at multiple levels. Right. I think and then the first thing which we work on is to improve user experience is if you come onto our platforms how does our data and intelligence, you know, help you perform a task better? So, so lots of work is going on and being done and launched even around helping your experience on Car Valley or OLEX or Bike quality get Better. Number one, how do you. And like I said, the one thing we always pride ourselves on is going deep into the journey so that it’s very hard for LLM to duplicate what we do.
For example, if you come to Carvalhe and you want to get a loan approved in a second, our tools help you get an approval from multiple banks within one second. I don’t think any LLM would be able to do that. Right. So our task is always to go deeper into a process of the journey of what we do so that no horizontal platform or an LLM can replicate or duplicate what we do. And the strength we’ve got is when we look at AI products within our experience for users, we obviously have public data, we obviously have our own public data, we have our own private data, and we have our own private consumer data or customer data.
All of that is being used for giving you a better response as a user. The LLMs only have public data. They don’t get to see all the other three levels of data. Right. As much as we are a technology company, we are a data warehouse for the automotive industry and all the other industries we cater to. So for example, today millions of mobile phones are sold on OLEX or hundreds and thousands of millions of furniture items are sold on olex. The amount of data around that helps us serve our customers better. 65% of used cars listed in India, our inventory in OLEX today.
So I think we feel that all of this data which we’ve got of consumer or products or price gives us a differentiated advantage on the AI front to help serve our customers better. I think that’s what we believe on licensing and sharing content. No, we don’t share content with proprietary content or our own data with LLMs at all. In any licensing arrangement, we think the data we’ve got and the brand we have and the platform we have is a differentiator or is differentiated and we would not want to be licensing or sharing it with anybody else.
Aditya Yadav
Okay, okay, understood. And regarding the consumer group, what other optionalities you see that you’ve been talking about, like going deeper into the user journey, facilitating loans is one such part of that. And do we see other optionalities also in the business where we could be trying to get larger revenue share of the user car buying journey, especially the.
Vinay Sanghi
Multiple journeys going on. There are multiple, multiple helping a person in the car buying journey, helping a person sell a car to get a loan to buy a car to buy other value added products to multiple, multiple journeys which help us serve the customer better and Give them a better experience and go deeper in the process of or buying or selling a product.
Aditya Yadav
Could you, could you provide some color on that?
Vinay Sanghi
In which business? I mean are you talking about Olex or Car Valley? Which one? Car Valley in the consumer group. So in Car Valley for us one of the things we help consumers do is how do they sell a car and they buy a car, right and how they trade in, manage. Right. For us buying a car is a journey. It’s not, it’s not about just buying a new car, it’s about all these surround activities around it and for building technology of products which help a user do all those tasks in what we call a one click environment is what we work towards and for that you need to work with the ecosystem which are dealers, manufacturers, banks, etc etc to provide products like this.
So I mean that’s an example of how we’re thinking. Okay.
Aditya Yadav
Okay, thank you. That’s all from.
Vinay Sanghi
Thank you. Thank you. Thank you.
operator
Thank you. The next question is from the line of Vijit Jain from Citi. Please go ahead.
Vijit Jain
Hi. Thank you for the opportunity and apologies. I could. Hi. Hi Vinay. Sorry I joined a little bit late in this question. I apologize. My question is, you know this quarter of course we saw all the GSC rate cuts that happened on cars etc. And a number of other categories too. Two questions. One at OLX level did you see any surge in listing activities etc. As people might have replaced at a higher pace than they would have done earlier on both cars and other categories. So did you see any indicators there and how should we think about that as it impacts your business going forward? And second also how the car price changes affect your business across all three categories.
If you could give me a broader color on how you think about.
Vinay Sanghi
We partly asked this before but the new car and started the new car side, the reduction in the new car prices of GST had an immediate benefit to the new car industry obviously. And we saw over October, December new car industry go rapidly recent scale, highest ever numbers they’ve ever done. And obviously Carvalhe and the consumer group are obviously beneficial to that immediately. I would say consumer demand, traffic demand, buying demand, all that automatically went up on Car Valley. I think what we saw, I mean and this is a trend normal, very normal when prices fall sharply in the new product industry is used car.
The used car industry is almost in a status quo mode where people are wondering whether they sell an old item at a lower price or not because the new car price has come down by 10% the used car price necessarily has to come down by 10%. I mean, this is the way the economics work. So I think for people who are selling a product, it takes some time to digest that, understanding that what I have is going to fetch me 10% less. And that takes one, two, three months to adjust itself. So OLX’s growth and a lot of that towards the end of December you find that people are becoming more accepting to realizing that the asset value has gone down in the used product they own because the new product itself come down.
And you found that starting to happen in December onwards in the used car industry or the used product industry. I think in January seeing a little more of that. Where people who have used products are now saying, listen, this is a new norm of pricing. Generally, as you’ve seen over the long periods of time, in multiple cycles like this, as the new product industry pricing goes down, the new product demand goes up, the used car demand goes up with a lag. Because when the used car product prices start going down, you start now finding demand for the used product going even higher.
So you show the massive growth in the used product industry in the next 12 to 15 months which follows. Typically the new product price decreases.
Vijit Jain
Okay, so there’s usually a lag there.
Vinay Sanghi
There’s a lag because it takes time people mentally to adjust to the new prices, but when they do, then the demand dramatically goes up because the affordability of the used product goes up.
Vijit Jain
Right. Makes sense. Thank you, thank you for that Vinay. Within the OLX business. Right. So I mean if I look at the last quarter, right, and you launched obviously a lot of products here, Elite buyer, super series, etc. And there was a big quarter on quarter jump in the last quarter. And if I use that exit rate that you might have had in September quarter, would you say that these GSE related changes, minus them OLX would have been higher than this in this quarter? And this is why you’re guiding to much better growth rate than 18% yoy going forward.
Vinay Sanghi
I’m not linking the GST at all with olex. I don’t think OLEX was positively or negatively affected with the gst. I just feel like OLEX is getting better at everything it does every day. Right. It’s an M and A which is a little more than two years now. And the product changes, the product improvements and new product launches by the Super Series launch in Jan, not in December, it was announced in Jan. So we feel like a lot of what we’re doing is starting to pay off and of course, at the center of it is user experience and transaction volume on OLEX is getting better and we obviously have visibility towards the end of quarters on how the next quarter is going to be because there’s a rate and the run rate.
So that’s why I’d given a guidance earlier in the call saying that the growth rate of OLEX will go up automatically in this quarter of Jan to March and that’s the guidance we’d given.
Vijit Jain
Thank you Vinayvin. Last question on the consumer business. Right. On the consumer business. Now I mean we can see your trends on traffic across Kar Valley and Waikwale in terms of revenue market share. Apples to apples. Would you say it’s roughly on par with your traffic share or would you say.
Vinay Sanghi
So I just say. Just. I got. I lost the last part. Just repeat the question. Revenue shares, the revenue traffic. Are you comparing the revenue traffic growth? Are you saying that?
Vijit Jain
Yeah. So roughly if you, if you have a certain traffic market share among classifieds and you have a certain revenue market share, would you say your revenue market share is above or below the traffic market share? Is what I’m trying to.
Vinay Sanghi
I don’t want to get into competitive market shares at this point but the reality is that Carvalhe, if you look at the traffic market share is very dominant in the business it’s in and that comes from the number of users which come itself. Clearly the dominance is displayed in all types of, in all facets of its business, you know, all its engagement scores, etc, etc and how we serve our customers, manufacturers and dealers. We also feel very strong about the revenue growth at Car valley. Right, about 32% growth nine months. And look at the last three years CAGR of growth of Car Valley.
It’s been extremely strong so I would like to keep it at that. But really we see that Car Valley is becoming clearly a dominant new car platform.
Vijit Jain
Got it? Understood. Just last question for Anisha. If you can give me those flick mix between new and used in OEM versus dealer. Thank you.
Aneesha Bhandary
Similar visit to what we have disclosed previously. The use continues to be like 15 versus new being at 85. The OEM dealer is at ballpark 7030 kind of a ratio OEM being 70 and dealer being.
Vijit Jain
Thanks. And within the remarketing business, what will you split between retail and those three categories that you split remarketing Income.
Aneesha Bhandary
Sure. Repo is about 49% of our business. Retail continues to be about 40% of the business and the balance is corporates.
Vijit Jain
Got it. Thank you, thank you, thank you.
operator
Thank you. The next question is from the line of Deep Shah from NV Capital. Please go ahead.
Deep Shah
Thank you for the opportunity. Am I audible?
Vinay Sanghi
Yes.
Deep Shah
So my first question is on the consumer business. Again I just wanted to understand over a two year horizon, do you see growth kind of tapering down? Because firstly during the IPO you all had mentioned that the penetration of like digital ad spends is around 19%. That currently would have increased to around 35, 40%. So it’s much closer, closer to global peers. Secondly, it’s largely a dualistic market. So do you see or do you use pricing as a conscious lever? So just and like the base would also catch up. So just wanted to get an understanding of the consumer business over two years.
Do you, how do you see growth coming, coming in here?
Vinay Sanghi
Sure. I think the first thing is that spends of manufacturers are in the 18 to 20% range on platform their cars. I think the 30, 40% you may be referring to if you include OTT platforms and television like YouTube and other things like that, there’s a huge headroom for advertising from the offline world to grow in the online world in the automotive industry. So the 17, 18, 20 meeting obviously will grow much larger over the next few years, number one. Number two, we also feel among digital advertising platforms, whether if a manufacturer is advertising on us or other horizontals, we feel we offer far more value to dealers and consumers.
So we see a clear increase in our market share in spends. Number three, we definitely see the automotive industry growing at a particular rate for the next five years. And we’ve shown that even though the industry growth is more muted, we continue to grow because of the shift towards spending on platforms like ours. And number four, we definitely see, you know, as prices and arpus of cars and the mix of cars changes, we benefit from that. So the multiple, multiple factors I think right, from user growth to all these four factors, which is why we see that, you know, the consumer group has continuously grown over the last three years.
Even this year has gone up 32% for the first nine months. We see no reason for this change for the coming few years at all.
Deep Shah
So the 20% penetration you said is on the auto, auto portal side, right?
Vinay Sanghi
No, no, no, it’s on, it’s on automotive plus all other such digital platforms.
Deep Shah
So would like Meta, Instagram, all of that would come in here.
Vinay Sanghi
That would come in that, that would come in that, yeah.
Deep Shah
Okay. And on pricing, do you see that as a conscious, I mean increase your.
Vinay Sanghi
Support, your top line, your prices change based on product change and mixes Too. Right. I think we’re not a company which charges more for doing the same thing. We normally, you know, we normally try and increase value to our users, to manufacturers, dealers by you know, when their prices change or when we provide more services to them. I think that’s where we think about it.
Deep Shah
Okay, and just in addition to the previous question on a mix on the remarketing group, the 10% corporate that you mentioned, how, just how would you differentiate between the retail and the corporate? What do you include in the corporate piece?
Vinay Sanghi
Retailer single user. Corporate is someone who’s got bulk vehicles. This is different. I mean a corporate could be fleet.
Deep Shah
Owners would be corporates.
Vinay Sanghi
Yeah. Fleet owners could be corporates. Yeah. Individual is just a single individual user. Yeah.
Deep Shah
Okay. And the last question was on Olex you mentioned that the growth would be pick up from them. Could you just elaborate on the non auto portal? I mean when you had acquired this the focus was largely on the auto piece of the business. How are we scaling up the non auto piece? And could you just.
Vinay Sanghi
The non auto piece has also grown rapidly. I mean in this period the non auto growth has been slightly ahead of the auto growth. So it’s been pretty strong. There are multiple parts of it from electronics to goods to mobiles, furniture, bikes, jobs, real estate, multiple parts of it. We feel very optimistic about all those. In fact in mobile phones there’s almost 25% of all phones sold are listed on Olex. We’ve shared that market share data as well publicly and even in furniture if you today in India are selling a table or a chair or anything else, OLEX is a single destination where 180, 190 million Indians come every year to sell something or buy something.
So it’s a very strong platform for used products. From a non auto standpoint of course on auto 65% of cars are listed on Rolex. But even on non auto we find that the traction and the adoption extremely high. And very optimistic about the non auto side. It actually fulfills a very major need for the population of India that if you ever want to sell something, I think this is the only methodology you can use to sell what you have. It could be a piano, it could be anything. And we said before that a lot of this operates hyper locally.
So if you are listing an item in a particular geography within a five kilometer geography, there’s a buyer for you. So very strong platform, very strong transaction metrics and an extremely strong adoption by users.
Deep Shah
Thank you so much and all the best.
Vinay Sanghi
Thank you.
operator
Thank you, thank you. The next question is from the line of Srinik Mehta from Indo Else Wealth. Please go ahead.
Shrenik Mehta
I thank you for giving this opportunity. I had two questions. Number one was on the roe. So you have a fairly strong glide path to the growth year. When do you think in the next. Two, three years we can come to. A more. Roe which is closer to say the growth that we want to. Take which may be in the range of 20, 25%.
Vinay Sanghi
I don’t give a guidance on when that will happen but clearly we see the ROE going up because as profitably goes up and the lack of Capex or other big investments being made, we clearly see the ARIA moving up in the company. Yeah, okay.
Shrenik Mehta
And second, I was thinking a little. Bit about the AI. So do you have some AI case which you’ve utilized in your company and has been very successful to bring the business growth for you? Any one user case
Vinay Sanghi
there are multiple interventions or AI. I think the one we it’s already live which all users use even today is if you list a product on Olex and let’s say you list a car and you put a photograph of something else, our AI tool immediately will check on it and obviously guide you to say listen, this is the wrong product. So the multiple small interventions like this, but AI being used across to enhance use the experience on Carvalhe or Olx there’s a lot of pricing information.
So if you go to Caravali today and you’re buying a used car, it’ll immediately guide you, tell you what price you should pay, which is all intelligently, you know. As you know used car pricing is extremely complicated, you know, item. And this is all done through AI so multiple interventions. But there’s a long long way to go with just the beginning of the AI interventions in the business.
Shrenik Mehta
Okay, appreciate your feedback. Thank you. Thank you.
operator
Thank you ladies and gentlemen. We will take that as a last question for today. I now hand the conference over to Mr. Aryan Simra for closing comments. Over to you sir.
Aryan Sumra
Thank you. I would like to thank the management for taking the time out for this conference call today and I would also like to thank all the participants. If you have any queries, feel free to contact us. We are mufg in time Investor Relations advisors to Cartier Tech limited. Thank you so much.
Vinay Sanghi
Thank you everybody.
Aneesha Bhandary
Thank you.
operator
Thank you on behalf of car Trade Tech Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.