Cars24’s India revenue has declined for the second consecutive year, with its core used-car business falling 23% in FY26 as the marketplace battled cost cuts, layoffs and senior-level exits.
The company’s revenue from operations fell 18.3% to Rs 5,092 crore in the fiscal year ended March 2026, from Rs 6,233 crore in FY25 and Rs 6,917 crore in FY24, according to consolidated financial statements filed with the Registrar of Companies.
Core business under pressure
Sale of cars through its auction and retail businesses remained the biggest contributor, accounting for around 87% of operating revenue. However, revenue from this segment declined 22.7% to Rs 4,349 crore in FY26, after falling 11% in FY25.
Read More: PhysicsWallah Q1 Revenue Crosses Rs 1,000 Cr Mark, Loss Down 31% YoY
Cars24 says the decline in reported revenue does not fully reflect underlying transaction activity. Combined GMV grew 2.8% to Rs 8,046 crore in FY26 from Rs 7,827 crore in FY25.
Read More: EaseMyTrip Posts Rs 135 Cr Revenue And Rs 11.7 Cr Loss In Q1 FY27
The company attributed the divergence to a shift in its merchant business from an inventory-led model, where the full vehicle value was recorded as revenue, to a direct transaction model where only the commission earned is recognised as revenue.
Costs fall, losses narrow
Car procurement, the company’s largest cost centre, fell 23.7% to Rs 4,212 crore. However, employee benefit expenses rose 33.4% to Rs 806 crore, while marketing expenses stayed broadly stable at Rs 105 crore. Overall expenses declined 17.7% to Rs 5,674 crore.
Cars24 narrowed its net loss by 18.8% to Rs 441 crore in FY26 from Rs 543 crore in FY25. EBITDA margin stood at 8.63%, while ROCE was 19.6%.
Financial services fill some gaps
Cars24’s non-auto income held up better than its core business. Financial services, including interest on loans disbursed through its Loans24 platform, along with service fees, parking fees, insurance assistance and warranties, together contributed around Rs 653 crore in FY26.
The company also recorded Rs 128 crore in other income, largely interest on current deposits, taking total income to Rs 5,220 crore. At the group level, Cars24 booked Rs 239 crore in ESOP costs during FY26, which it said was largely tied to acquisitions of smaller companies through cash-and-stock deals.
Leadership churn and the road ahead
The year saw significant organisational changes. In April 2025, Cars24 laid off around 200 employees, with CEO Vikram Chopra saying some projects had been added prematurely. India used-car CEO Himanshu Ratnoo stepped down in March, co-founder Gajendra Jangid stepped back from day-to-day operations, and co-founder and COO Mehul Agrawal exited his operating role in April.
Cars24 is yet to complete its reverse flip from Singapore to India. With its IPO timeline no longer clearly in sight, the company needs to show its used-car retail and auction businesses can return to growth. Rival Spinny, meanwhile, crossed the Rs 6,000 crore revenue threshold in FY26 and raised $320 million over the past year.