IPO-Bound Cars24 Claims Adjusted EBITDA Profitability In Q4 FY26

IPO-bound used car marketplace Cars24 has claimed adjusted EBITDA profitability in the fourth quarter (Q4) of fiscal year 2025-26 (FY26). In a statement, the startup claimed that it clocked an adjusted EBITDA of ₹20 Cr during the quarter. 

The company also said that its UAE operations delivered “structurally positive” EBITDA margins, while its Australia arm also hit “operating profitability” in Q4 FY26.

“Adjusted net revenue grew 37% (YoY) to ₹760 Cr (in H2 FY26), ahead of our ₹750 Cr guidance, through a GST rate change in India and real disruption in the UAE. Inside that half sits Q4 FY26, the quarter we became a profitable company for the first time, with ₹20 Cr of adjusted EBITDA,” said cofounder and CEO Vikram Chopra.

The company attributed the adjusted EBITDA “profitability” to AI-led efficiencies, strong growth across its core businesses and lending vertical, network effects and low cost of user acquisition.

Overall, the startup claimed that its EBITDA loss narrowed 35.7% to ₹357 Cr in the full FY26 as against ₹555 Cr in the year ago fiscal. 

In its half-yearly performance update, Cars24 also said that its adjusted net revenue (net of GST/VAT) rose 27.3% to ₹1,411 Cr in the fiscal under review compared to ₹1,108 Cr in FY25. Meanwhile, net loss from “continuing operations” fell 24% YoY to ₹363 Cr. 

While the company is yet to file its audited financials for FY26, the aforementioned numbers do not reflect operating revenues or net losses. 

On the operational front, the platform’s vehicle transaction GMV declined marginally by 0.5% YoY to ₹7,766 Cr in FY26, while its vehicle ownership services GMV rose sharply by 13X YoY to ₹280 Cr. It also disbursed loans worth ₹3,220 Cr during the fiscal under review, up 47.4% from ₹2,185 Cr in FY25.

Founded in 2015 by Chopra, Gajendra Jangid, Ruchit Agarwal and Mehul Agrawal, Cars24 operates an online marketplace for buying and selling used cars. It also offers financing, insurance support and warranty services. 

It has raised over $1.3 Bn to date from investors such as SoftBank, Alpha Wave Global, and Peak XV Partners and was last valued at over $3.2 Bn. 

What’s Driving Cars24?

In its half-yearly performance report, the autotech platform claimed that each of its business units in India, Australia and UAE is now operating profitably, adding that healthy user traffic helps the platform convert traffic into transacting customers at a fraction of what a paid acquisition model costs.

On the retail front, the company claimed that retail GMV grew 50%+ YoY in H2 FY26, while customer acquisition cost (CAC) declined more than 40% YoY during the period. Per-car gross margin expanded “materially” due to higher value-added services income and better financing unit economics, added the company. 

In H2 FY26, the company also claims to have clocked 3.8 Cr monthly active users, sold 85,975 cars, down 11% YoY, and processed 15 Lakh vehicle ownership transactions (such as RC transfers), up 11% YoY.

Earlier this year, Cars24 also acquired two vehicle information startups, Car Info and Vehicle Info. On this, the autotech major said that the two platforms are improving monetisation and user acquisition economics for the company. 

“Three consumer surfaces, one underlying platform, one customer relationship that extends well beyond a single transaction. That is the thesis these acquisitions were built to deliver, and the early evidence is consistent with it,” said Cars24.

On AI, the company said that the technology has already contributed roughly 300 bps to EBITDA. The marketplace claims to be using AI to reduce inspection time, conduct audits at its retail hubs and handle 15 Lakh+ minutes of calls per month across 7 languages. The company claims to generate almost a third of its code with AI, while automating a significant number of workflows in marketing, design and analytics.

Notably, Cars24 has seen a spree of leadership exits of late. Its India used-car business CEO Himanshu Ratnoo stepped down in March, while co-founders Mehul Agrawal and Gajendra Jangid stepped down as chief operating officer and chief marketing officer, respectively, within the span of days last month. 

“Mehul and Gajendra are stepping down from their executive roles. We arrived at the decision together… Practically, very little changes. Both remain shareholders… Ruchit (Agarwal, Cars24 CFO and cofounder) and I will absorb the majority of their executive responsibilities, supported by a leadership bench that has been running large parts of this business for years… No other governance or cap table changes are contemplated,” added Chopra.

The development comes as the startup is looking to go public. At the beginning of the year, CEO Chopra said the startup would hit the bourses within the next six to twelve months. 

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