CARS24 revenue rises 18% as retail shift narrows losses ahead of IPO plans

Auto-tech firm says higher-margin retail and financing businesses are reshaping its profit profile

CARS24 posted an 18 per cent increase in adjusted net revenue in the first half of FY26, as India’s leading auto-tech marketplace leaned more heavily on higher-margin retail and financing businesses to narrow losses and improve operating leverage.

 

The company reported adjusted net revenue of ₹651 crore for the six months ended September, while its adjusted EBITDA loss narrowed 36 per cent from a year earlier to ₹162 crore. Vehicle transaction gross merchandise value (GMV) reached ₹3,731 crore, with retail accounting for more than half of total GMV for the first time, a milestone executives say is reshaping the company’s profit profile.

 

Retail GMV rose 21 per cent year on year to ₹2,009 crore, supported by tighter pricing, faster inventory turnover and higher attachment of financing and value-added services. Retail margins expanded to 19.3 per cent, reflecting a deliberate shift away from lower-margin wholesale transactions.

 

“Good growth shows up in revenue. Better growth shows up in margins, cash flow and repeat behaviour,” said Shivanshu Makkar, chief financial officer of CARS24. “The mix is shifting towards businesses that compound better—retail, financing and ownership services—and that is already changing the shape of the profit and loss (P&L),” he said, adding that the company is focused on capital discipline as it prepares for life as a public company.

 

The company said it is preparing for an initial public offering within the next six to twelve months, subject to market conditions and regulatory approvals.

 

Financing and post-purchase services are emerging as key growth engines. Loans disbursed through its LOANS24 platform rose 38 per cent year on year to ₹1,637 crore, while its vehicle ownership services—including insurance, vehicle history reports and buyback products—scaled nearly 19-fold from a year earlier, albeit from a small base.

 

International operations also showed improvement. The United Arab Emirates business turned adjusted EBITDA positive, reporting a profit of ₹9 crore for the period, with retail margins of about 24 per cent. In Australia, GMV grew about 20 per cent year on year, supported by deeper market penetration and higher financing attachment rates.

 

CARS24 has continued to invest heavily in automation and artificial intelligence, spending ₹95 crore on technology during the first half. AI systems now support pricing, inspections, document verification and customer support, helping reduce inspection times by roughly 30 per cent and handling more than seven lakh minutes of customer calls each month, the company said.

 

The platform facilitated about 85,000 vehicle transactions across India, the UAE and Australia during the period and attracted more than 11 million monthly active users. Marketing costs in India were reduced by roughly a third, even as volumes grew, following the exit from non-core experimental businesses.

 

Looking ahead, CARS24 expects momentum to accelerate in the second half, projecting adjusted net revenue of more than ₹750 crore in H2FY26—about 35 per cent growth from a year earlier—as it continues to push towards profitability and a potential public listing.