Cars24 reported steady improvement in the first half of FY26, posting adjusted net revenue of ₹651 crore, up 18% year-on-year. The results reflect the company’s effort to balance growth and profitability as organised, tech-led used-vehicle marketplaces gain traction in India and overseas.
Lower cash burn and tighter cost control
Adjusted EBITDA losses narrowed 36% to ₹162 crore versus the year-ago period, underscoring a push toward profitability. Operating expenses were largely flat at about ₹719 crore, indicating tighter financial discipline and improved cost management across the business.
Management credited the improvement to increased automation, better demand forecasting and broader use of technology in inspection, pricing and backend operations. Cars24 invested nearly ₹95 crore in its technology stack during the half-year, including AI-led tools aimed at faster turnarounds and reduced manual intervention.
Shift to higher-margin retail transactions
Overall vehicle transaction GMV dipped modestly by 5% to ₹3,731 crore, but the quality of revenue strengthened as Cars24 prioritised retail sales. Retail GMV rose 21% year-on-year to ₹2,009 crore, representing more than half of total transaction value in H1 FY26.
Retail margins improved to roughly 19.3%, supported by better pricing intelligence, stronger dealer participation and growing buyer confidence on the platform. The company’s reduced reliance on lower-margin wholesale transactions signals a strategic focus on sustainable earnings rather than volume-driven growth.
Transactions and finance-led services gain momentum
Cars24 facilitated nearly 85,000 vehicle transactions across India, the UAE and Australia during H1 FY26 and expects to exceed 180,000 transactions for the full year. The financing vertical saw notable traction: loan disbursements through the platform grew 38% year-on-year to ₹1,637 crore.
Value-added services—including insurance, extended warranties, compliance solutions and inspection-based products—recorded a sharp increase. GMV from these services expanded nearly 19-fold compared with the prior year, highlighting diversification of revenue streams beyond core marketplace fees.
International operations bolster resilience
Cars24’s overseas businesses contributed meaningfully to performance and stability. The UAE arm achieved adjusted EBITDA profitability, posting a ₹9 crore profit driven by healthy retail margins. Australia delivered steady growth in GMV and adjusted revenue, supported by higher customer engagement and more active dealer participation.
Expanding international operations helps Cars24 diversify its revenue base and partially hedge against domestic demand fluctuations.
Outlook for H2 FY26
For the second half of FY26, Cars24 expects adjusted net revenue to exceed ₹750 crore, implying about 35% growth for the full fiscal year. The company plans to continue prioritising margin-led growth, deeper technology integration and expansion of high-value services as it advances toward profitability.
