Tracxn Profit Drops 36% in Q3 FY25 as Revenue Stagnates

Data and research platform Tracxn saw a sharp decline in its profits in the third quarter of FY25, despite its revenue remaining nearly unchanged. The company’s profit fell by 36% year-on-year, highlighting the strain of rising expenses against stagnant income.

Flat Revenue Puts Pressure on Profitability

Tracxn reported revenue from operations of Rs 21.39 crore in Q3 FY25, a marginal increase from Rs 21.14 crore in Q3 FY24. The firm derives its entire operating revenue from subscription sales, granting clients access to its extensive data and analytics platform. However, the company did not disclose a more detailed revenue breakdown in its latest financial reports.

Additional income from non-operating sources contributed Rs 1.5 crore to the total revenue, bringing the overall figure for the quarter to Rs 22.89 crore. While this provided some financial support, it was not enough to offset growing expenses.

Rising Employee Costs Weigh on Margins

One of the biggest factors affecting Tracxn’s bottom line was a rise in employee-related costs.

• Employee benefits expenses jumped by 10% year-on-year, reaching Rs 18.63 crore in Q3 FY25 from Rs 17 crore in Q3 FY24.
• These costs accounted for a staggering 89% of Tracxn’s total expenditure.
• Overall, the company’s expenses grew by 9%, hitting Rs 20.98 crore for the quarter.

This sharp increase in costs, against the backdrop of sluggish revenue growth, caused Tracxn’s net profit to drop significantly. The company’s profit for Q3 FY25 stood at Rs 1.42 crore, down from Rs 2.22 crore in the same period last year.

Market Performance and Investor Backing

Tracxn, founded by Abhishek Goyal and Neha Singh, has positioned itself as a leading player in tracking startups and private companies across multiple industries. The firm has secured backing from high-profile investors, including Accel Partners, Peak XV Partners, and Elevation Capital. It currently serves clients across more than 40 countries, leveraging its extensive data intelligence network.

As of the last trading session, Tracxn’s share price stood at Rs 69.5, translating to a market capitalization of Rs 737.19 crore (approximately $85 million). While the company remains a key player in the data research space, its profitability challenges may raise concerns among investors moving forward.