Cars24, the used-car sales platform, has reported a significant 27% increase in revenue for fiscal year 2026, reaching Rs 1,411 crore. This growth comes alongside a notable reduction in operating losses, which decreased by 36% compared to the previous year.
According to founder and CEO Vikram Chopra, the company achieved Ebitda positivity in January 2026, a milestone attributed to the adoption of artificial intelligence that streamlined marketing and technology costs. This strategic shift has allowed Cars24 to maintain nearly flat operating expenses at the group level.
Financial Highlights
- Revenue: Rs 1,411 crore, a 27% year-on-year increase.
- Ebitda Loss: Narrowed to Rs 357 crore from Rs 555 crore in FY25.
- Loan Disbursals: Increased by 57% during the October-March period of FY26.
Operational Efficiency
Chopra emphasized that each business unit within Cars24 is now profitable. The company's operations span across India, the UAE, and Australia, utilizing a unified platform for inspection, pricing, financing, and customer relationship management. This model significantly reduces the costs associated with entering new markets.
Cost Reductions
Shivanshu Makkar, CFO of Cars24 India, noted that the implementation of AI tools led to:
- Marketing costs dropping by 40-45%.
- Technology expenses decreasing by 20-25%.
- Vendor costs related to car refurbishment falling by approximately 15%.
Workforce Productivity
In the latter half of FY26, revenue per employee surged by 50% compared to the previous year, largely due to the efficiencies gained from AI deployment, which contributed significantly to Ebitda improvement.
Leadership Changes
Recently, Cars24 experienced leadership transitions with the departure of founders Mehul Agrawal and Gajendra Jangid from executive roles. Despite these changes, they will continue to support the company in advisory capacities.
Future Outlook
As Cars24 prepares for a potential public listing, the company is also in the process of shifting its domicile from Singapore to India, a move that is expected to streamline operations further.
