Cars24 Achieves Profitability Ahead of IPO Plans

IPO-bound used car marketplace Cars24 has announced achieving adjusted EBITDA profitability in the fourth quarter of fiscal year 2025-26 (FY26), reporting an adjusted EBITDA of ₹20 crore for the period. The company also highlighted that its operations in the UAE achieved structurally positive EBITDA margins, while its Australian arm reached operating profitability in the same quarter.

Cofounder and CEO Vikram Chopra stated that adjusted net revenue grew 37% year-over-year to ₹760 crore in the second half of FY26, exceeding guidance. This growth was attributed to AI-led efficiencies, strong performance across core businesses and its lending vertical, network effects, and a low cost of user acquisition. For the full fiscal year FY26, Cars24 reported a narrowed EBITDA loss of ₹357 crore, a 35.7% decrease from ₹555 crore in the previous fiscal year.

Overall adjusted net revenue for FY26 rose 27.3% to ₹1,411 crore compared to ₹1,108 crore in FY25. Net loss from continuing operations fell 24% year-over-year to ₹363 crore. While audited financials are pending, these figures do not include operating revenues or net losses.

Operationally, the platform’s vehicle transaction gross merchandise value (GMV) saw a slight decline of 0.5% year-over-year to ₹7,766 crore in FY26. However, vehicle ownership services GMV surged by 13 times year-over-year to ₹280 crore. The company also disbursed loans worth ₹3,220 crore, a 47.4% increase from FY25.

Cars24, founded in 2015, operates an online marketplace for used cars and offers related services like financing and insurance. The company has raised over $1.3 billion to date and was last valued at over $3.2 billion. It recently acquired vehicle information startups Car Info and Vehicle Info to enhance monetization and user acquisition economics.

The company emphasized that its business units in India, Australia, and the UAE are now operating profitably. AI integration has reportedly contributed approximately 300 basis points to EBITDA, with AI being used to reduce inspection times, conduct audits, and manage call volumes. This progress comes as Cars24 aims to go public within the next six to twelve months.

Recent leadership changes include the departures of Himanshu Ratnoo, CEO of India used-car business, and co-founders Mehul Agrawal and Gajendra Jangid from their executive roles. CEO Vikram Chopra and CFO Ruchit Agarwal will absorb these responsibilities.