Tracxn's Q3 Profit Declines 36% YoY To INR 1.4 Cr

SUMMARY

The company had posted a loss of INR 4.66 Cr in the preceding September quarter of FY25 due to deferred tax component

Its revenue from operations increased 1.2% to INR 21.39 Cr in Q3 FY25 from INR 21.14 Cr in the year-ago quarter

Total expenses increased 8.5% year-on-year (YoY) and 2.3% QoQ to INR 20.98 Cr

Market intelligence company Tracxn reported a net profit of INR 1.42 Cr in the third quarter of the fiscal year 2024-25 (Q3 FY25), down 36% from INR 2.22 Cr in the same quarter of previous fiscal.

The company had posted a loss of INR 4.66 Cr in the preceding September quarter of FY25. In Q2 FY25, Tracxn’s management “reassessed the recoverability of deferred tax assets on carry forward business losses based on the availability of future taxable profits and reversed deferred tax assets”. This led to an additional burden of INR 6.35 Cr on its bottom line.

“Management has reviewed the recoverability of such deferred tax assets as at December 31, 2024 and concluded that no further adjustment is required in this regard,” the company said.

Meanwhile, its revenue from operations increased 1.2% to INR 21.39 Cr in Q3 FY25 from INR 21.14 Cr in the year-ago quarter. On a quarter-on-quarter (QoQ) basis, the company’s top line was almost flat.

Including other income of INR 4.9 Lakh and other gain component of INR 1.45 Cr, the company’s total income for the quarter stood at INR 22.90 Cr.

However, EBITDA declined 76% year-on-year (YoY) to INR 45 Lakh during the quarter under review from INR 1.86 Cr in the year-ago quarter. EBITDA margin also contracted to 2.09% from 8.80% in Q3 FY24.

Founded in 2013 by Neha Singh and Abhishek Goyal, Tracxn is a private equity market research and data platform that tracks company financials, private funding and cap tables of entities worldwide.

It claims to host detailed shareholding of over 3.13 Lakh companies from over 15 countries on its platform. At 1,699, Tracxn added the highest number of customers in Q3.

The company claims to have realised a 16% YoY increase in its India revenue to INR 24.7 Cr in the first nine months of FY25, while revenue from international customers dipped 6% YoY to INR 38.6 Cr.

The company said that the growth spurt from the India business came on the back of the launch of “vertical teams” in the past nine months.

The company launched a new platform, Tracxn Lite, which gives users a chance to explore curated data at no cost and comes with strict usage limits. It claims that this platform has got more than 1 Lakh signups since launch and has a monthly active user base of 23,000.

Besides, it also claims to be seeing increased volume of inbound leads in its verticals dedicated to startups, accelerators, incubators and investment banks.

While the company’s top line grew steadily in the past quarter, its total expenses also increased 8.5% YoY and 2.3% QoQ to INR 20.98 Cr. A bulk of its expenses were centred around its employees, with it spending INR 18.64 Cr on its workforce. This marked a 9.6% YoY and 2.4% QoQ increase.

In the quarter, Tracxn expanded its employee stock option plan by allotting 4,47,036 equity shares to eligible employees under Employee Stock Option Plan 2016.