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Cars24 posts first-ever quarterly profit as AI-driven growth gathers pace
Autotech platform sharpens focus on ownership services and global expansion
MUMBAI: Cars24 has reported its first profitable quarter, marking a key turning point for the Gurugram-based autotech platform as it pushes beyond car sales into a broader vehicle ownership ecosystem.
The company posted an adjusted EBITDA profit of Rs 20 crore in the fourth quarter of FY26, its first positive quarterly earnings since launch. The milestone came alongside strong growth across retail, lending and ownership-focused services.
Cars24 said adjusted net revenue for the second half of FY26 rose 37 per cent year-on-year to Rs 760 crore, while losses narrowed sharply by 83 per cent, signalling stronger operating leverage and improving unit economics.
The company’s retail gross merchandise value grew 35 per cent year-on-year and now contributes more than 60 per cent of total transaction value. Loan disbursements climbed 57 per cent to Rs 1,789 crore, helped by deeper financing integration across the platform.
One of the fastest-growing segments for the company was vehicle ownership services, which expanded 11 times year-on-year. These services include insurance renewals, FASTag support, documentation and vehicle history checks, areas Cars24 increasingly sees as sticky, long-term engagement points rather than one-off transactions.
The platform now attracts over 3.8 crore monthly users, with the company claiming that nearly one in 10 vehicle owners in India interacts with its services in some form.
Internationally, the company said its UAE business delivered positive EBITDA margins, while its Australia operations achieved operating profitability during the quarter.
A major driver behind the turnaround has been Cars24’s growing use of artificial intelligence across operations. In H2 FY26, revenue per employee rose 50 per cent as functions such as pricing, inspections, customer interaction and risk assessment became increasingly AI-led.
Speaking about the shift, Cars24 builder Vikram Chopra said profitability was a result of the company becoming “more useful to customers over time”.
He added that the company’s focus had evolved from simply facilitating a car purchase to supporting customers throughout the ownership journey, including financing, compliance, insurance and resale.
Cars24 also highlighted that affordability and trust remain central to its strategy. According to the company, three out of four retail buyers on the platform are first-time car buyers, with financing and inspection tools helping widen access to vehicle ownership.
Looking ahead, the company plans to deepen its ownership ecosystem, scale global operations and further embed AI into the business. Cars24 said AI is no longer just a feature within the platform, but increasingly the engine driving how the company operates and grows.
