Cars24, India’s AI-driven autotech platform, has reported its first profitable quarter, marking a major milestone in the company’s growth journey and its vision of building a comprehensive car ownership ecosystem.
The company posted an Adjusted EBITDA profit of ₹20 crore in Q4 FY26, achieving profitability for the first time since its inception. The performance was supported by strong momentum across Cars24’s core business segments.
During the second half of FY26, Cars24 reported Adjusted Net Revenue of ₹760 crore, representing a 37 percent year-on-year increase. The company also significantly reduced its losses by 83 percent, reflecting improved operational efficiency, stronger unit economics, and growing operating leverage.
Cars24 said the results highlight the continued expansion of its AI-native automotive platform and strengthening performance across its ecosystem-led business model.
From transactions to ecosystem
Cars24’s profitability comes on the back of a structural shift: from a transaction led platform to a AI native auto ecosystem.
For most buyers, purchasing a car is not the moment of certainty, it is the beginning of responsibility. What they are evaluating is not just the transaction, but the years that follow: documentation, maintenance, insurance, compliance, and eventual resale.
You cannot solve a five-year ownership journey with a five-minute experience. The only way to solve it is to show up consistently across those years.
Today, over 3.8 crore users engage with Cars24 platforms every month, with nearly 1 in 10 vehicle owners in India interacting with the platform for services ranging from insurance renewals to vehicle history checks.
Over time, this creates a structural advantage. While individual features can be replicated, a system built on continuous engagement and trust over years is significantly harder to compress or recreate.
Strong growth across key businesses
Retail GMV grew 35% YoY, now contributing over 60% of total transaction value
Loans disbursed rose 57% YoY to ₹1,789 crore, driven by deeper financing integration
- Vehicle ownership services grew 11x YoY, emerging as a high-frequency engagement layer
International markets also showed resilience, with the UAE delivering positive EBITDA margins and Australia achieving operating profitability in Q4 FY26
AI-Driven Operating Model Boosts Cars24’s Path to Profitability
Cars24 said its transition to profitability has been strongly supported by its AI-native operating model, which has helped improve efficiency and scale operations more effectively.
During the second half of FY26, the company reported a 50 percent increase in revenue per employee, reflecting higher productivity across the organisation.
Cars24 added that several core business functions — including vehicle pricing, inspections, customer engagement, and risk assessment — are now predominantly powered by AI-driven systems and automation.
According to the company, this AI-led approach has enabled operational efficiencies at scale while helping maintain disciplined cost growth as the business continues to expand.
Talking about this shift, Cars24’s builder, Vikram Chopra saidProfitability is a big moment for us, but it is not an accident. It is the result of the company becoming more useful to customers over time. A car purchase, especially a first car, is not a five minute decision. It is something people live with for years. The anxiety is not only about getting the right car today, but also about whether someone will be there when things need attention later.
That is the gap Cars24 has been built to solve. We are present at the point of purchase, but increasingly, we are also present through ownership, insurance, compliance, FASTag, documents, financing, resale, and everything in between. Each of these interactions may be small on its own, but over time they build familiarity and trust. The business changes when you stay close to the customer beyond the transaction.
To support this at scale, the system has to be built differently. It has to improve continuously with use, across pricing, risk, customer experience, and ownership workflows. That is the natural direction this business has taken. Cars24 today operates as India’s leading AI-native automotive ecosystem, while still staying deeply invested in the customer across the lifecycle of ownership. This is what we’ve been building towards and now we’re ready to scale it.
Cars24 Focuses on Expanding Affordable Car Ownership Across India
Cars24 said it remains committed to making car ownership more accessible and affordable for millions of Indian consumers, particularly first-time buyers entering the market.
According to the company, nearly three out of every four retail buyers on its platform are purchasing a car for the first time. Cars24 noted that financing solutions, vehicle inspection systems, and trust-building mechanisms are helping unlock access for customers who were previously underserved or excluded from the automotive market.
Company Targets Next Phase of Growth
Following its first profitable quarter, Cars24 said it is now focused on strengthening its broader car ownership ecosystem, expanding its international presence, and building a more integrated platform for vehicle ownership services.
The company also highlighted the growing role of artificial intelligence across its operations. Cars24 stated that AI is no longer just a feature within the business, but a core element shaping how the company functions and scales.
During the second half of FY26, revenue per employee increased by 50 percent, reflecting improved efficiency driven by its AI-native operating model. The company said it is now targeting a threefold improvement in productivity as AI integration deepens further across the organisation.
Cars24 believes this AI-led operational strategy will become a key long-term growth driver as it continues scaling multiple business verticals simultaneously.
