IndiaMART bets on AI to sharpen its edge, but warns of uncertain returns

IndiaMART InterMESH Ltd reported a 9.8% increase in net profit for the second quarter of 2026. The company has integrated artificial intelligence into over 20 operational functions, enhancing various processes. AI models such as ChatGPT and Claude are utilized to optimize operations and improve efficiency. Revenue for the quarter increased by 9.7%, reaching ₹429 crore, reflecting growth in the standalone business.

IndiaMART InterMESH Ltd outlined its growing use of artificial intelligence across business operations during its earnings call for the second quarter ended September 2026. The B2B e-commerce company said it is deploying AI across multiple functions while leveraging different AI models, as it looks to explore new opportunities and strengthen its competitive position.

"AI is being deployed across more than 20 functions, ranging from pre-sales and data preparation to sales meeting scheduling, service ticket resolution, catalogue design, category mapping, audits, user verification and category intelligence," said Dinesh Agarwal, Chief Executive Officer of IndiaMART InterMESH Ltd, during the earnings call.

"For over a year now, our voice AI agents have been serving around 80,000 to 1 lakh buyers every day. Buy leads and requests for quotations (RFQs) generated through these interactions are posted live on the IndiaMART platform," Agarwal said.

On the company's choice of AI models, Agarwal said IndiaMART uses a range of solutions, including Gemini, Claude, ChatGPT, Gemma, Alibaba's Qwen and Grok. He added that the company generally prefers to use existing models rather than develop them in-house, as AI development is not its core business.

"AI is helping us in many areas where we could not do certain things earlier. At the same time, it is putting similar tools in the hands of the public, allowing them to do many things on their own," he said, adding that the net impact of AI on the business could remain volatile over the next two to four years.

Agarwal said IndiaMART's data could become a key competitive advantage if used effectively with AI. "AI and your IndiaMART data, if used effectively, can actually become a very useful force in protecting your turf and growing your turf in the times to come," he said.

He also said the company had begun gradually integrating BUSY, Livekeeping and IndiaMART at the backend.

"While AI is opening up several opportunities that we could not explore earlier, it is also putting similar tools in the hands of the public, allowing them to do many things on their own. The net benefit of AI over the next two to four years could remain volatile. However, our deeper understanding of the technology and its applications provides some downside protection. We understand AI, we are using it effectively, and we see several opportunities in this space," said Agarwal.

The B2B e-commerce company reported a 9.8% year-on-year y-o-y rise in net profit to Rs 90.8 crore in the second quarter ended September 2026, compared with Rs 82.7 crore in the corresponding quarter last year.

Revenue from operations increased 9.7% YoY to Rs 429 crore from Rs 391 crore a year earlier.

Consolidated customer collections grew 9% YoY to Rs 443 crore during the quarter.