After years of scaling, CARS24 is officially preparing for its debut on the public bourses. On January 15, CEO Vikram Chopra shared the company’s performance update for the first half of fiscal year 2026 (H1 FY26), highlighting a sharp reduction in cash burn and a strategic shift toward high-margin services.
Financial Performance: H1 FY26 Highlights
The company reported an 18% year-on-year (YoY) increase in adjusted net revenue, driven by its focus on retail transactions and financing.
| Metric | H1 FY26 (Apr–Sept 2025) | Change (YoY) |
| Adjusted Net Revenue | ₹651 Crore | +18% |
| Adjusted EBITDA Loss | ₹162 Crore | -36% (Burn cut) |
| Total Car Transactions | ~85,000 Units | Steady |
| Loan Disbursements | ₹1,637 Crore | +38% |
| Vehicle Ownership GMV | ₹94 Crore | 19x Increase |
The Pivot to “Vehicle Ownership”
The most significant change in CARS24’s business model over the last 18 months has been the expansion beyond buying and selling. The company has integrated a suite of “super app” services that increase customer lifetime value:
- Financing & Insurance: Loan disbursements have become a key growth lever, growing 38% globally.
- CarTruth & Compliance: Services like pre-delivery inspections, vehicle history reports, and challan payments saw a massive 19x surge in transaction volume.
- Chauferly: The company’s on-demand chauffeur service.
- Acquisitions: Recent deals for Team-BHP (April 2025) and CarInfo (January 2026) have strengthened its data and community capabilities ahead of the listing.
AI and Operational Efficiency
CARS24 has positioned itself as an “AI-first” organization to drive profitability.
- Inspection Speed: AI-led automation has reduced vehicle inspection times by 30%.
- Customer Support: In-house AI systems now handle over 7 lakh minutes of customer calls monthly.
- EBITDA Positivity: The company’s UAE operations turned EBITDA positive in H1 FY26, posting a profit of ₹9 crore, providing a blueprint for its Indian and Australian markets.
Market Outlook: The $200 Billion Opportunity
CEO Vikram Chopra highlighted that CARS24 is targeting a 10% market share over the next 3–4 years in an organized used-car market that continues to grow at twice the pace of the overall industry.
“Hoping to go for the IPO in 6-12 months from now. We have built momentum. Now we compound it. It is a huge market of $200bn+.” — Vikram Chopra, CEO of CARS24.
Conclusion
With an expected adjusted net revenue of over ₹750 crore for the second half of FY26 (H2), CARS24 is entering its IPO window with strong winds in its sails. The focus on “earnings quality” over sheer volume suggests the company is aiming to avoid the “growth-at-all-costs” pitfalls of previous tech IPOs, positioning itself as a sustainable leader in the global auto-tech ecosystem.
