Target: ₹3,150CMP: ₹2,601.20Our analysis suggests OLX’s Elite Buyer programme could emerge as a meaningful monetisation lever if its paid-user subscriptions continue to scale up steadily. We reckon even a modest 5 per cent conversion of the platform’s about six million monthly buyers at a nominal monthly ARPU of about ₹200 has the potential to unlock about ₹70 crore in incremental revenue.OLX’s FY26 revenue stood at ₹220 crore with barely any contribution from buyer monetisation. The business is concurrently working on initiatives around Elite Sellers, verified users, escrow-led transactions and fintech services that could unlock further monetisation opportunities. Unlike customer acquisition-led growth initiatives, the Elite Buyer initiative primarily involves product enhancement, AI capabilities and platform integrations with no meaningful marketing or branding spends required besides spend on tech and corporate overheads. As adoption scales up, a large portion of incremental revenue should flow through to profitability, resulting in strong operating leverage and margin expansion for OLX. We therefore expect EBITDA margin to expand to c. 40 per cent/47 per cent in FY27E/28E from c. 31 per cent in FY26.We are raising OLX’s FY27E-29E revenue/EBITDA by 11-25 per cent/17-28 per cent and the target EV/EBITDA to 40x (from 30x). This along with a valuation rollover to June 2027E drives up the TP to ₹3,150 (from ₹2,340); reiterate Buy.Published on June 24, 2026