Cars24 Revenue Decline and Ongoing Challenges
Cars24’s revenue has faced a decline for the second year in a row as the used-car marketplace deals with a difficult fiscal year 2026, characterised by cost reductions, job cuts, and significant departures of high-level personnel. The company’s operational revenue decreased by 18.3%, reaching Rs 5,092 crore for the fiscal year ending March 2026, down from Rs 6,233 crore in FY25 and Rs 6,917 crore in FY24, as shown in its consolidated financial statements submitted to the Registrar of Companies (RoC).
Core Business Performance
The sale of vehicles through its auction and retail segments has remained the primary source of revenue, making up approximately 87% of its operating income. Nevertheless, revenue from this category fell by 22.7%, totalling Rs 4,349 crore in FY26, indicating difficulties within its essential used-car segment. This segment had already experienced an 11% drop in FY25, highlighting the ongoing stress on its core business for a second consecutive year, affecting overall scale.
Additional Sources of Income
The remaining operating income was sourced from financial services, encompassing interest generated from loans offered through its Loans24 platform, alongside service fees, parking charges, and other provisions like insurance aid and warranties. Collectively, these contributed approximately Rs 653 crore during the fiscal year. Cars24 also recorded an additional Rs 128 crore in other income, mainly from interest on current deposits, bringing the total income to Rs 5,220 crore, compared to Rs 6,358 crore in the prior fiscal year.
Cost Structure and Financial Adjustments
As the business has contracted, car procurement has represented the company’s largest cost area, though it fell by 23.7% to Rs 4,212 crore. In contrast, employee benefit costs rose by 33.4% to Rs 806 crore, while marketing expenditures remained largely unchanged at Rs 105 crore. Ultimately, Cars24’s total expenses decreased by 17.7% to Rs 5,674 crore in the last fiscal year.
Organisational Changes
Cars24’s financial year was marked by considerable organisational transformations. In April 2025, approximately 200 employees were laid off across various functions as part of a restructuring initiative, with CEO Vikram Chopra indicating that some roles and projects had been introduced prematurely. The leadership upheaval continued into 2026, with India’s used-car CEO Himanshu Ratnoo resigning in March, resulting in Chopra assuming direct management of the division. Co-founder Gajendra Jangid subsequently withdrew from daily operations, and co-founder and COO Mehul Agrawal also exited his operational role in April.
Financial Overview
Despite the revenue dip, Cars24 managed to reduce its net loss by 18.8%, decreasing it to Rs 441 crore in FY26 from Rs 543 crore in FY25. Its EBITDA margin was recorded at 8.63%, and ROCE stood at 19.6% during the last fiscal year.
Competitive Landscape
In contrast, Spinny has emerged as the dominant player within India’s used-car retail market, experiencing over 28% revenue growth in FY26, while Cars24 faced another year of decline. Spinny surpassed the Rs 6,000 crore revenue mark in FY26 and is projected to grow by 25-30% in FY27. The company successfully secured $320 million in funding over the last year, affording it more flexibility to expand as Cars24 strives to regain its competitive edge.
Future Priorities
For Cars24, the imminent goal is to restore growth in its used-car segment before embarking on broader expansion strategies. The organisation is yet to complete its reverse flip from Singapore to India, adding an extra hurdle before it can adequately prepare for a public listing. With the IPO timeline now less clearly defined, Cars24 must prove that its used-car retail and auction sectors can return to a growth trajectory and support stronger economics. Mere reduction in losses may not suffice to rebuild the necessary scale and market confidence required for a successful public-market entry.