Gurugram-based used car platform Cars24 has announced its first profitable quarter, reporting an adjusted EBITDA profit of ₹20 crore in Q4 FY26. This financial milestone accompanies a significant strategic pivot by the company, as it aims to become a comprehensive platform managing the entire car ownership journey for Indian consumers.
A Shift Towards Comprehensive Ownership Services
Beyond vehicle sales, Cars24 is expanding its offerings to include a wide array of post-purchase support. This full-stack strategy encompasses crucial services such as financing, vehicle insurance, FASTag services, compliance assistance, documentation support, ongoing servicing, and eventual resale support. These areas were traditionally fragmented among various offline providers, and Cars24 seeks to consolidate them under one digital roof.
The company's leadership emphasizes that buying a car is merely the beginning of a long-term responsibility, with ownership-related stresses often emerging after the initial purchase. Cars24 aims to alleviate these concerns by remaining connected with consumers throughout their vehicle's lifecycle.
Market Dynamics Fueling Growth and Expansion
This strategic shift reflects a changing landscape in India's used-car market. Modern buyers increasingly prioritize convenience, trust, and robust post-purchase support over simple transactional exchanges. Cars24 reports substantial user engagement, with over 3.8 crore users interacting with its platforms monthly for services like insurance renewals and vehicle history checks. The company estimates that nearly one in ten vehicle owners in India now engages with its platform in some capacity.
The platform is also witnessing a surge in first-time car buyers, with three out of four retail purchasers on Cars24 making their inaugural vehicle acquisition. This trend is driven by rising new-car prices and more accessible financing options, steering more consumers towards organized used-car platforms.
Financial Performance and Future Outlook
For H2 FY26, Cars24 reported a 37% year-on-year increase in adjusted net revenue, reaching ₹760 crore, while simultaneously narrowing its losses by 83%. The company's growth was further bolstered by strong performance across its business segments:
- Retail GMV: Increased by 35% year-on-year.
- Loan Disbursals: Grew by 57% to ₹1,789 crore.
- Vehicle Ownership Services Business: Expanded an impressive 11-fold year-on-year.
Founder Vikram Chopra reiterated the company's commitment to maintaining a continuous connection with consumers beyond the point of sale through its integrated suite of insurance, financing, FASTag, compliance, and resale services.