Why FIIs Are Bullish on Cartrade Despite Market Sell-Off

Cartrade Tech Ltd. is India’s top auto platform for trading new and used vehicles, operating popular brands like

, CarWale, BikeWale, and Adroit Auto. It connects dealers, customers, vehicle OEMs, and businesses efficiently. Despite foreign institutional investors (FIIs) selling broadly elsewhere, FIIs increased their stake in Cartrade to 68.51% by Q2 FY26, showing strong confidence. The platform attracts more than 8.5 crore monthly users and has over 10 crore app downloads. In just one quarter, it listed over 18 lakh vehicles for auction and operates over 500 physical stores nationwide. Strong business segments drive growth: the consumer group sales jumped from ₹55.6 crore to ₹76.2 crore with profit after tax nearly doubling. Remarketing sales grew 23%, while profits rose 30%. The OLX segment grew sales by 17%, with profits more than tripling. Overall quarterly sales rose 25% to ₹193 crore, and net profit doubled to ₹64 crore year-on-year. Management expects OLX growth to accelerate if costs stabilize and new strategies expand the business, while the consumer segment looks strong for the second half. The stock trades at a premium PE ratio of 78.5x, almost double the industry median, reflecting high expectations. For shareholders, Cartrade’s growing user base, strong market leadership, and rising profits are clear positives. However, the premium valuation means investors should watch closely if growth and margins justify the high price over time.