For years, profitability in India’s used car startup space felt like a distant promise. Cars24 just made it a reality — and the numbers tell a story that goes far beyond one good quarter.
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Cars24: The Milestone at a Glance
| Metric | H2 FY26 Performance |
|---|---|
| Adjusted EBITDA (Q4 FY26) | ₹20 crore (first profitable quarter) |
| Adjusted Net Revenue Growth | 37% YoY — ₹760 crore |
| Loss Reduction | Narrowed by 83% |
| Retail GMV Growth | 35% YoY — over 60% of total GMV |
| Loans Disbursed | ₹1,789 crore — up 57% YoY |
| Vehicle Ownership Services | 11x YoY growth |
| Revenue Per Employee | Up 50% YoY |
| International | UAE: positive EBITDA · Australia: operating profitable |
From Startup to Sustainable: What Changed
Cars24 did not stumble into profitability — it engineered it. The company has spent the last two years systematically rebuilding itself from a transactional used-car platform into what it now calls an AI-native automotive ecosystem. That shift is showing up everywhere in the numbers.
Revenue per employee jumped 50% year-on-year. That is not a hiring freeze story — it is an AI story. Pricing algorithms, vehicle inspection tools, customer interaction systems, and risk assessment models are now deeply powered by machine intelligence, cutting costs while improving accuracy and speed. For context on how AI is reshaping automotive retail globally, see Wikipedia’s overview of AI in the automotive industry.
For more on how tech is disrupting India’s auto market, read our EV and auto tech coverage on TechnoSports.
The Business Verticals Driving Growth
The 37% YoY revenue growth did not come from one lucky segment. Cars24 fired on multiple cylinders simultaneously.
Retail is now the core engine — GMV grew 35% YoY and now accounts for over 60% of total transaction value. This shift toward owned retail inventory means better margins and more control over the customer experience than a pure marketplace model ever could.
Lending is the sleeper hit of the story. Loans disbursed grew 57% YoY to ₹1,789 crore. As more buyers finance through Cars24 directly, the company captures more value per transaction — and builds a financial services business alongside the auto one.
Vehicle ownership services — insurance, service packages, accessories — delivered a jaw-dropping 11x YoY growth, signalling that customers are staying within the Cars24 ecosystem long after the initial purchase.
Going Global, Profitably
India is the foundation, but Cars24 is building internationally too. UAE operations are now delivering positive EBITDA margins, while Australia achieved operating profitability in Q4 FY26 itself. Cracking two geographically and culturally distinct international markets simultaneously is a meaningful proof point that the playbook scales. Follow our startup and business tech coverage on TechnoSports for the latest on Indian tech companies going global.
Why This Matters for India’s Auto Ecosystem
An 83% reduction in losses alongside 37% revenue growth is a rare combination — it means Cars24 is not just growing faster, it is growing smarter. When India’s largest used-car platform turns profitable, it validates the entire segment and raises the bar for every competitor still burning cash to acquire customers.
The first profitable quarter is not the finish line. It is the starting gun for the next phase.
FAQs
Q: What does Cars24’s ₹20 crore EBITDA mean for customers?
It signals a financially stable platform, meaning better service consistency, continued tech investment, and less risk of the kind of cost-cutting that hurts the buyer experience.
Q: Is Cars24 profitable in India and internationally?
Cars24 achieved its first profitable quarter in India (Q4 FY26) while UAE posted positive EBITDA margins and Australia reached operating profitability in the same period.
