Cars24 achieved a 27% increase in adjusted net revenue to Rs 1,411 crore for fiscal year 2026 while cutting its Ebitda losses by 36%, reaching profitability in January for the first time. The company's AI adoption played a key role in reducing operating expenses and boosting efficiency across its markets in India, the UAE, and Australia.
- Revenue grew 27% to Rs 1,411 crore in FY26
- Ebitda loss narrowed 36%, turned positive in January
- Loan disbursals increased 57% in last half of FY26
What happened
Cars24 reported a significant 27% year-on-year rise in adjusted net revenue for fiscal 2026, reaching Rs 1,411 crore. Alongside growth, the company substantially cut its Ebitda losses by 36%, from Rs 555 crore in FY25 to Rs 357 crore in FY26. Notably, it achieved positive Ebitda in January, marking a key milestone in its profitability journey.
The company operates with a unified platform across India, the UAE, and Australia, allowing it to enter new markets with low marginal costs. The CEO highlighted that all major business units are now profitable, reflecting the operational improvements within this period. Additionally, Cars24 grew its loan disbursal volumes by 57% in the latter half of the fiscal year through its NBFC arm.
Why it matters
Cars24's success in narrowing losses while growing revenue underscores the impact of its strategic adoption of artificial intelligence technologies. AI has delivered significant cost savings by reducing marketing expenses by up to 45%, technology costs by around 25%, and vendor refurbishment costs by about 15%. This efficiency boost enabled a 50% increase in revenue per employee, directly supporting margin improvement and eventual profitability.
The consolidation of a single platform across multiple international markets provides a competitive advantage by enabling scalable and cost-effective expansion. This model reduces the need for duplicate investments when entering new cities or countries, giving Cars24 a differentiated edge in the fast-growing and competitive used-car marketplace.
What to watch next
Following recent executive changes with key founders stepping down from management roles, leadership continuity and strategic execution will be critical as Cars24 prepares for a potential public listing and shifts its corporate domicile from Singapore to India. Monitoring how the company maintains operational momentum and market growth amid leadership transitions will be important.
Future developments in its financial services unit will also be pivotal, especially as loan disbursal volumes have surged. Expanding credit offerings to buyers could become a substantial growth lever, influencing both revenue diversification and customer acquisition in India's booming used-vehicle sector.