Mumbai, June 25 -- The upgrade is based on expectations of a new demand cycle, starting with improved platform traffic and business enquiries, followed by growth in subscriber additions and collections. While the broker raised FY26/FY27 earnings estimates by 9-10%, it also lowered profitability expectations.

The valuation multiple was increased from 22x to 35x, citing improved growth prospects. Management's steps to address structural challenges -- like platform upgrades, insourcing sales, and branding investments -- were also noted.

IndiaMART has reduced supplier enquiries per buyer to lower competition and improve satisfaction. The brokerage expects subscriber additions to recover by Q2/Q3, driving collection growth.

IndiaMART is Ind...