Digital used-car marketplace Cars24 has delivered a stable and improving financial performance in the first half of fiscal year 2026, reporting an adjusted net revenue of ₹651 crore, marking an 18% year-on-year growth. The company’s latest numbers underline its ongoing effort to balance growth with profitability in an evolving auto-tech landscape.
Despite a cautious environment in the broader automotive sector, Cars24’s performance reflects the growing preference for organised, tech-enabled used-vehicle platforms in India and overseas markets. The company’s focus on efficiency, margins, and diversified services played a key role in sustaining momentum during the period.
Sharp Reduction in Cash Burn Signals Profitability Push
One of the most encouraging highlights of Cars24’s H1 FY26 performance is the 36% reduction in adjusted EBITDA losses, which narrowed to ₹162 crore compared to the same period last year. Operating expenses remained largely flat at around ₹719 crore, demonstrating tighter financial discipline and improved cost controls.
The company attributed this improvement to automation, better demand forecasting, and increased use of technology across inspection, pricing, and backend operations. Cars24 also continued investing in its technology stack, spending nearly ₹95 crore during the half year, including investments in AI-led tools aimed at improving turnaround times and reducing manual intervention.
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Strategic Shift Towards Higher-Margin Retail Business
While overall vehicle transaction GMV witnessed a modest 5% decline to ₹3,731 crore, Cars24’s strategic pivot toward higher-margin retail transactions significantly strengthened revenue quality. Retail GMV rose 21% year-on-year to ₹2,009 crore, accounting for more than half of total transaction value during the period.
Retail margins also improved sharply to around 19.3%, supported by better pricing intelligence, stronger dealer participation, and increased buyer confidence on the platform. The company’s reduced reliance on lower-margin wholesale transactions signals a long-term approach to building sustainable earnings rather than chasing volume at the cost of profitability.
Strong Growth in Transactions and Finance-Led Services
Cars24 facilitated close to 85,000 vehicle transactions across India, the UAE, and Australia during H1 FY26 and expects to cross 180,000 transactions for the full fiscal year. Alongside marketplace growth, the company’s financing vertical delivered robust traction.
Loan disbursements through the platform grew 38% year-on-year to ₹1,637 crore, indicating strong customer adoption of integrated vehicle financing solutions. In addition, value-added offerings such as insurance, extended warranties, compliance services, and inspection-based products recorded a sharp jump, with GMV from these services expanding nearly 19 times compared to the previous year.
International Markets Add Stability to Growth Story
Cars24’s international operations continued to play a meaningful role in its overall performance. The UAE business turned profitable at the adjusted EBITDA level, posting a ₹9 crore profit backed by strong retail margins. Meanwhile, the Australian market saw steady growth in both GMV and adjusted revenue, supported by higher customer engagement and improved dealer activity.
These markets are increasingly contributing to Cars24’s diversified revenue base while helping the company hedge against domestic demand fluctuations.
H2 FY26 Outlook Remains Optimistic
Looking ahead, Cars24 expects adjusted net revenue to exceed ₹750 crore in the second half of FY26, translating into nearly 35% annual growth. The company plans to continue prioritising margin-led growth, deeper integration of technology, and expansion of high-value services.
As Cars24 advances on its path toward profitability, its H1 FY26 performance highlights a clear shift toward disciplined growth, making it one of the more resilient players in India’s auto-tech and mobility ecosystem.