Cars24 Reports 18% Rise in Adjusted Net Revenue
Cars24, a digital automotive marketplace, has announced an 18% increase in adjusted net revenue, reaching Rs 651 crore in the first half of FY26. This growth occurred even as the overall vehicle transaction GMV remained relatively unchanged, as indicated in their performance update.
Reduction in EBITDA Loss
During this period, Cars24 successfully decreased its adjusted EBITDA loss by 36% year-on-year, now at Rs 162 crore. This improvement was attributed to effective cost management and a rise in automation. Their operating expenses remained stable at Rs 719 crore, despite the revenue increase.
Vehicle Transaction GMV Trends
However, the vehicle transaction GMV saw a 5% decline year-on-year, coming in at Rs 3,731 crore during H1 FY26. Cars24 has been directing more vehicles towards retail transactions rather than wholesale, focusing on profitability rather than just volume. Retail GMV has improved by 21% year-on-year, reaching Rs 2,009 crore, which now constitutes over 50% of total transaction GMV. Additionally, retail margins expanded to 19.3% during the period, as reported in their performance update.
Transaction Volume and Future Goals
The company facilitated nearly 85,000 car transactions across India, the UAE, and Australia in H1 FY26. Cars24 is on the path to exceed 1.8 lakh car transactions in FY26.
Financing and Vehicle Ownership Services
Financing, including loans issued through the platform, increased by 38% year-on-year, reaching Rs 1,637 crore during the half-year. Concurrently, vehicle ownership services, which consist of insurance, inspection reports, buyback options, and compliance products, saw GMV skyrocket nearly 19 times year-on-year to Rs 94 crore.
International Operations and Profitability
The company’s international operations have also strengthened. The UAE business achieved profitability at the adjusted EBITDA level, posting a profit of Rs 9 crore in H1 FY26, with retail margins around 24%. In Australia, the business recorded approximately 20% year-on-year growth in GMV, alongside over 22% growth in adjusted net revenue.
Investment in Technology and Automation
During H1 FY26, Cars24 invested Rs 95 crore in technological advancements. Generative AI is now used to enhance pricing, inspections, document verification, and customer interactions at scale. This AI-driven automation has decreased inspection times by nearly 30%, helping to control costs as volume increases.
Outlook for H2 FY26
Looking ahead, Cars24 anticipates exceeding an adjusted net revenue of Rs 750 crore in H2 FY26, marking a projected growth of about 35% year-on-year, as the company continues to prioritise earnings quality over mere GMV growth.
