According to its performance update, digital car marketplace Cars24 recorded an 18% year-over-year increase in adjusted net revenue to Rs 651 crore in the first half of FY26, despite the fact that overall vehicle transaction GMV remained almost unchanged.
Key Highlights
- Cars24 posted ₹651 crore in adjusted revenue in H1 FY26, showing steady business growth.
- The company reduced its cash burn by 36%, reflecting improved cost discipline and operational efficiency.
Cars24's adjusted EBITDA loss decreased by 36% year over year to Rs 162 crore throughout that time. Increased automation and strict cost control were the main drivers of the improvement; despite revenue growth, operating expenses remained largely unchanged at Rs 719 crore.
The company reports that in H1 FY26, vehicle transaction GMV fell 5% year over year to Rs 3,731 crore. Cars24 prioritized profitability over volume and progressively directed cars toward retail transactions rather than wholesale. According to the company's performance update, retail margins increased to 19.3% during the quarter, and retail GMV increased 21% YoY to Rs 2,009 crore, accounting for almost 50% of total transaction GMV.
The company claims that in H1 FY26, it enabled about 85,000 automobile transactions in Australia, the United Arab Emirates, and India. In FY26, Cars24 is also expected to surpass 1.8 lakh automobile transactions.
During the half-year, financing, which includes loans made via the platform, increased by 38% YoY to Rs 1,637 crore. Concurrently, GMV had a nearly 19x YoY increase to Rs 94 crore in vehicle ownership services, including as insurance, inspection reports, buyback, and compliance items.
The corporation claims that its global operations have also improved. With retail margins of about 24%, the UAE company reported a profit of Rs 9 crore in the first half of FY26, turning a profit at the adjusted EBITDA level. Additionally, Australia reported GMV increase of roughly 20% YoY and adjusted net revenue growth of more than 22%.
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During the first half of FY26, Cars24 invested Rs 95 crore in technology, and GenAI is currently enabling pricing, inspections, document verification, and customer calls at scale. Automation powered by AI helped cut inspection times by over 30% while controlling expenses as volumes increased.
As company continues to put profitability quality ahead of headline GMV growth, Cars24 anticipates surpassing the adjusted net revenue of Rs 750 crore in H2 FY26, suggesting about 35% YoY increase.
