Digital automotive marketplace Cars24 reported steady improvement in financial efficiency in the first half of FY26, delivering double-digit revenue growth while significantly reducing losses, even as overall vehicle transaction volumes remained largely flat.
According to the company’s performance update, adjusted net revenue rose 18% year-on-year to ₹651 crore in H1 FY26. During the same period, adjusted EBITDA loss narrowed 36% YoY to ₹162 crore, driven by tighter cost control and higher automation.
Cost Discipline Drives Margin Improvement
Operating expenses remained broadly flat at ₹719 crore, despite revenue growth, highlighting improved operating leverage. The company said increased automation and tighter execution helped contain costs across markets.
Retail Push Reshapes GMV Mix
Overall vehicle transaction GMV declined 5% YoY to ₹3,731 crore, as Cars24 deliberately prioritised profitability over scale. The platform increasingly shifted vehicles from wholesale to retail channels.
- Retail GMV grew 21% YoY to ₹2,009 crore
- Retail now accounts for over 50% of total transaction GMV
- Retail margins expanded to 19.3% during the period
The shift underscores the company’s strategy of optimising earnings quality rather than chasing headline GMV growth.
Transaction Volumes and Financing Gain Momentum
Cars24 facilitated nearly 85,000 car transactions across India, the UAE, and Australia in H1 FY26, and expects to cross 1.8 lakh transactions in FY26.
The financing segment including loans disbursed through the platform grew 38% YoY to ₹1,637 crore. Meanwhile, vehicle ownership services such as insurance, inspection reports, buybacks, and compliance products saw GMV surge nearly 19x YoY to ₹94 crore, indicating growing monetisation beyond core transactions.
International Markets Strengthen
Cars24’s UAE operations turned profitable at the adjusted EBITDA level, reporting a profit of ₹9 crore, with retail margins at around 24%. The Australia business also posted about 20% YoY GMV growth and over 22% growth in adjusted net revenue, reinforcing the platform’s global scalability.
Technology and AI at the Core
The company invested ₹95 crore in technology during H1 FY26. GenAI now powers pricing, inspections, document verification, and customer calls. AI-led automation helped reduce inspection time by nearly 30%, enabling scale without proportional cost increases.
Outlook
Cars24 expects to cross ₹750 crore in adjusted net revenue in H2 FY26, implying roughly 35% YoY growth, as it continues to prioritise margin expansion and sustainable profitability over pure volume growth.
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