Cars24 reported steady improvement in H1 FY26, with adjusted net revenue of ₹651 crore — an 18% year-on-year rise — reflecting its push to balance growth and profitability amid shifts in the auto-tech sector.
Cash burn narrows as cost controls and automation take effect
Adjusted EBITDA losses fell 36% year-on-year to ₹162 crore, a notable improvement that underscores the company’s focus on financial discipline. Operating expenses remained largely flat at about ₹719 crore, indicating tighter cost management even as the business scales.
Management attributed gains to automation, enhanced demand forecasting and wider deployment of technology across inspections, pricing and backend operations. Cars24 invested nearly ₹95 crore in its technology stack during the half, including AI-led tools to speed up vehicle turnaround and reduce manual intervention.
Shift toward higher-margin retail strengthens revenue quality
Overall vehicle transaction GMV dipped modestly by 5% to ₹3,731 crore, but a strategic pivot to retail transactions improved revenue mix. Retail GMV rose 21% year-on-year to ₹2,009 crore, comprising over half of total transaction value in the period.
Retail margins expanded to about 19.3%, supported by improved pricing intelligence, stronger dealer participation and rising buyer confidence on the platform. Reduced reliance on low-margin wholesale volumes signals a deliberate move to prioritise sustainable earnings over volume-driven growth.
Transactions, financing and value-added services gain traction
Cars24 facilitated nearly 85,000 vehicle transactions across India, the UAE and Australia in H1 FY26, and is targeting roughly 180,000 for the full year. Its finance vertical showed strong momentum: loan disbursements through the platform rose 38% year-on-year to ₹1,637 crore, reflecting growing customer uptake of integrated vehicle-financing solutions.
Complementary offerings — insurance, extended warranties, compliance services and inspection-based products — also expanded sharply. GMV from these value-added services increased nearly 19-fold versus the prior year, highlighting the company’s push to diversify revenue streams beyond core marketplace commissions.
International operations add stability
Cars24’s overseas businesses contributed meaningfully to performance and diversification. The UAE operation reached adjusted EBITDA profitability, posting a ₹9 crore profit supported by healthy retail margins. Australia recorded steady growth in both GMV and adjusted revenue, driven by higher customer engagement and improved dealer activity.
These markets are helping Cars24 offset domestic demand variability and build a more balanced revenue base.
Outlook for H2 FY26
For the second half of FY26, Cars24 expects adjusted net revenue to exceed ₹750 crore, implying roughly 35% growth for the year. The company plans to continue prioritising margin-led growth, deeper tech integration and expansion of high-value services as it advances toward sustained profitability.
