Whalesbook
Profitability Milestone Achieved
Cars24 has posted its maiden quarterly profit, reporting an adjusted EBITDA of Rs 20 crore for the fourth quarter of FY26. This achievement marks a significant turning point for the SoftBank-backed auto-tech platform, underscoring the success of its strategic pivot towards building a comprehensive, AI-native car ownership ecosystem.
Growth Drivers and AI Integration
The company's foray into profitability was catalyzed by robust growth across its core operations. Adjusted net revenue for the second half of FY26 surged 37% year-on-year to Rs 760 crore, while losses saw an 83% reduction. Retail Gross Merchandise Value climbed 35%, contributing over 60% to total transactions. Loan disbursements grew 57% to Rs 1,789 crore, and vehicle ownership services expanded dramatically, showing an 11-fold increase. A key enabler has been the integration of AI, which boosted revenue per employee by 50% in H2 FY26 by streamlining pricing, inspections, and customer interactions.
Future Outlook and Expansion
With profitability secured, Cars24 is now focused on deepening its car ownership ecosystem, particularly for the next 20 crore Indians who are often first-time buyers. The company's integrated services in financing, inspection, and trust-building are crucial for expanding market access. Global expansion and the creation of a unified car ownership platform remain key objectives, with AI expected to continue driving operational efficiencies and future growth.