Fading Mood: Internet Stocks Down Up to 28% So Far in 2026. The brokerage supports Paytm, Groww, and five more after the third quarter.

Internet companies in India had sharply different third-quarter results, with some platforms reporting strong revenue momentum and expanding profits, while others continued to struggle with weak profits or widening losses. Looking at the stock’s performance so far in 2026, we see a drop of up to 28%, reflecting waning investor interest in the new age pack. However, the brokerage remains constructive on select names, citing improved fundamentals and long-term growth potential.

3rd quarter performance and report card return

Distinct companies stood out with strong top-line growth and meaningful profit expansion. Eternal, which operates Zomato and Blinkit, is leading the way with an impressive 202% year-on-year revenue growth and 73% surge in profit after tax (PAT), demonstrating strong operating leverage. However, the stock price showed a sluggish performance after the earnings announcement (-0.05%). The stock price has fallen slightly from the beginning of the year.

PB Fintech, the operator of Policybazaar, achieved solid performance, with sales up 37% year-on-year and PAT surging 164%, highlighting improved unit economics. The stock is down 18% YTD.

One 97 Communications (Paytm) recorded a notable turnaround, posting a PAT of Rs 225 crore in the third quarter of 2026, against a loss of Rs 208 crore a year ago and a 20% revenue growth. While the stock is down 8% YTD, it has delivered an impressive 52% return over the year.

Another transformation example in the internet space, Nykaa has achieved returns of 3% so far in 2026, mimicking investors’ lack of confidence in the stock. Parent company FSN E-Commerce Ventures reported a 27% increase in sales and a 142% surge in PAT in the October-December quarter.

Nifty fell 2% in 2026. Also Read: From a 320% multibagger to a 44% underperformer, how Mukul Agrawal’s 2025-26 IPO bet is faring

Indiamart Intermesh and Le Travenues (Ixigo) are other shining examples where stock returns do not match earnings enthusiasm. Indiamart is down 2% this year, while Ixigo is down 23% in the same period.

The former recorded steady top-line growth of 13% YoY, and PAT rose 56%. The latter reported 31% revenue growth and 54.12% PAT expansion due to strong travel demand.

CarTrade Tech recorded 19% revenue growth and 35.11% PAT increase, while AvenuesAI recorded a 122% revenue surge and 15% bottom line growth. TBO Tek also delivered strong topline momentum, with 85.78% revenue growth and 7.44% PAT growth, while PSU rail company IRCTC reported healthy 18.36% revenue growth and 15.61% PAT growth, reflecting solid execution.

YTD returns are -28%, 13%, -16%, and -9% respectively, with AvenuesAI being the outlier with double-digit returns.

Late orders in the 3rd quarter

Several Internet companies reported poor profitability in the quarter under review. EasyMyTrip’s revenue growth was only 0.72% year-on-year and its PAT plummeted 90.87%. This indicates margin pressure despite positive stock returns this year. Easy Trip Planners, which operates a travel platform, is lagging among its peers with a 31% return, but is rallying on the back of a Rs 500-crore fund raising plan to expand key growth areas and strengthen its financial health.

Read more: EaseMyTrip stock price surges 60% in 3 days. What drives the rally?

Nazara Technologies, which reported a 24% decline in revenue and a 37% decline in PAT, returned just over 1% for the year.

Just Dial shares are down 13% in 2026. The company recorded modest revenue growth of 6% despite a 10% decline in PAT.

RattanIndia and IIFL Capital reported low single-digit revenue growth along with declining revenue.

Angel One saw revenue rise 6%, but PAT fell 4.51%, reflecting pressure on brokerage margins.

Motilal Oswal Financial Services (MOFSL) reported that profitability was broadly flat despite revenue growth.

Swiggy and FirstCry continued to report widening losses despite revenue rising 54% and 12% respectively.

new age newbies

Among the recently listed players, Lenskart Solutions recorded PAT of Rs 131.02 crore, up 6,983 per cent year-on-year, on the back of low base, and revenue of Rs 2,308 crore, up 38 per cent year-on-year. Listed on November 10, the stock is up 11% YTD at Rs 488, 22% higher than its issue price of Rs 402.

Billionbrains Garage Ventures (Groww) saw its PAT decline 28% year-over-year due to a high base from one-time gains last year, but revenue grew a healthy 24.8%. At Rs 169, Groww is 69% higher than the issue price of Rs 100. It’s up 9% this year.

Also read: Ola’s 63% IPO collapse isn’t everything. Because 9 IPOs were worse. 100+ Stocks Are Wealth Destroyers

7 stocks to buy

1) Where to buy: Nykaa | Nubama | Target: Rs 310

Nuvama raised its growth and profitability estimates by revising its target upward from Rs 285.

2) Information Edge Purchase: Centrum/Nubama: | Target: Rs 1,641/1,390

Nuvama has slashed its target by lowering its growth estimate from Rs 1,580 as hiring for Naukri’s largest group of job seekers – the Rs 5 lakh to 30 lakh salary range – remains sluggish.

3) Buy eMudhra | Centrum | Target: Rs 918

4) Buy Paytm: Investec/Bernstein (Excellent) | Target: Rs 1,550-Rs 1,600

5) Buy Eternal | JM Financial/Nomura | Target: Rs 400/380

6) buy grow | Motilal Oswal/City | Rupees 190

7) Buy Lenskart | JM Finance/Citi/Jeffreys | 575/565/520 rupees

Data entry by Ritesh Presswala

(disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. It does not represent the views of The Economic Times.)