Market Brief: Indian Internet Sector Q3 Update The Indian internet ecosystem is currently navigating a period of sharp divergence. While several key platforms delivered record revenue momentum and profit expansion in the December quarter, share prices have faced downward pressure due to broader market volatility and waning sentiment in the new-age tech space. Total year-to-date declines for some internet stocks have reached up to **28%**. However, underlying business fundamentals show a significant pivot toward sustainable profitability and margin expansion across major players. Key Performance Drivers **Zomato (Eternal Ltd)** The food delivery and quick-commerce leader reported a staggering **202%** year-on-year jump in revenue. Profit after tax surged **73%**, reflecting strong operating leverage. Despite these metrics, the stock has traded flat at approximately **₹271.95**, as investors weigh valuation against long-term growth. **Paytm (One 97 Communications)** The fintech major achieved a notable turnaround, posting a net profit of **₹225 crore** for the quarter, compared to a loss of **₹208 crore** in the previous year. Revenue grew **20%** to **₹2,194 crore**, driven by a **35%** growth in consumer UPI volume. Market price currently stabilizes around **₹1,115**, with brokerages setting upside targets near **₹1,375**. **Nykaa (FSN E-Commerce)** Strong demand during festive sales propelled a **142%** rise in net profit, reaching **₹63.3 crore**. Revenue climbed **27%** to **₹2,873 crore**. The company expanded its specialized retail footprint to **276 stores**, maintaining a double-digit same-store sales growth. **PB Fintech (Policybazaar)** The insurance aggregator reported a **37%** revenue increase, with net profit soaring **164%**. While operational efficiency has improved, the stock remains down **18%** year-to-date, mirroring the cautious sentiment toward high-growth digital platforms. Emerging Trends & IPO Pipeline Market sentiment is shifting from "growth at any cost" to a focus on cash flow and margin stability. This maturity is evident in the robust IPO pipeline for 2026. Nearly **14 companies** aim to raise over **₹20,000 crore** in the coming months. High-profile listings such as **PhonePe**, **Jio**, and **Lenskart** are expected to hit the market within the next six months. Lenskart, in particular, has seen renewed interest with target prices established around **₹600** by major brokerages. Sector-wide, IT spending in India is projected to reach **₹15.14 lakh crore** by the end of 2026. This growth is increasingly driven by data-center expansion and the integration of native digital service models, despite a global cooling in traditional software exports.