Gurugram-based used car retailer Spinny has reported a net loss of ₹423 crore in FY25, marking a 28% reduction from ₹590 crore in the previous fiscal year, even as its revenue from operations surged 25% year-on-year to ₹4,657 crore. This performance, detailed in consolidated financial statements filed with the Registrar of Companies (RoC) on September 28, 2025, reflects the company’s aggressive scaling in a competitive market, where used car sales volumes grew amid hybrid work trends and rising affordability. Founded in 2015 by Neeraj Singh, Mohit Gupta, and Ramanshu Mahaur, Spinny operates over 36 car hubs across 22 cities, including Delhi-NCR, Bengaluru, and Mumbai, processing thousands of vehicles monthly through its full-stack model of inspection, refurbishment, and financing.
For investors tracking Spinny’s path to profitability, auto sector analysts, and entrepreneurs in the $50 billion Indian used car space, these results signal resilience despite headwinds like high inventory costs and marketing spends. With EBITDA improving and expansions underway, FY25 underscores Spinny’s bet on volume over margins. Let’s dissect the numbers, key factors, and forward-looking strategy.
FY25 Financials: Loss Narrowed, Revenue Accelerated
Spinny’s FY25 showcased top-line momentum, with used car sales—accounting for 97.7% of operating income—rising 25.7% to ₹4,553 crore, fueled by increased transaction volumes and ancillary services like financing and insurance. Total income, including other sources, reached ₹4,700 crore, up from ₹3,730 crore in FY24.
A comparative snapshot:
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | 4,657 | 3,730 | +25 |
| Used Car Sales | 4,553 | N/A | +25.7 |
| EBITDA | N/A | N/A | Improved (implied by loss cut) |
| Net Loss (PAT) | 423 | 590 | -28 |
The loss reduction stems from cost rationalization post-FY24’s aggressive marketing trim (down to ₹141 crore from ₹328 crore), though inventory procurement and employee expenses remained elevated at 7.8% and flat YoY, respectively. Finance costs rose 33% to ₹90 crore, reflecting debt for expansions, but overall efficiency gains narrowed the gap.
Growth Drivers: Scaling Hubs and Market Tailwinds
Spinny’s revenue boom aligns with India’s used car market, projected to hit 10 million units annually by 2030, driven by rising middle-class demand and EV transitions. Key enablers:
- Network Expansion: Added hubs in Tier-2 cities like Ahmedabad and Indore, boosting reach to 22 cities with 13,000+ seats equivalent in vehicle processing capacity.
- Full-Stack Model: End-to-end control—from 150-point inspections to 7-day buyback guarantees—drove 25-30% volume growth, per CEO Mohit Gupta.
- Ancillary Upsell: Financing and insurance contributed 2.3% of revenue, up from prior years, with partnerships enhancing margins.
Despite the loss, Q1 FY26 EBITDA jumped 189% YoY to ₹7.5 crore, hinting at inflection. Competitors like Cars24 (₹5,535 crore revenue, ₹468 crore loss in FY23) faced similar pressures, but Spinny’s 28% loss cut outpaces peers.
Challenges: Inventory Costs and Competitive Heat
The FY25 dip, while narrowed, highlights persistent hurdles:
- High Capex: Stock purchases hit ₹3,495 crore (up 7.8%), squeezing cash flows in a low-margin (5-7%) sector.
- Marketing Discipline: Post-rationalization, spends stabilized, but digital ads remain key amid Cars24 and OLX rivalry.
- Macro Pressures: Rupee depreciation (30% since 2014) inflated import-dependent parts, though offset by domestic sourcing.
OYO’s 88.3% ownership provides stability, with ESOP expansions (2.37 crore options) retaining talent amid a $1.8 billion valuation.
Outlook: 25-30% Growth in FY26, Path to Black Ink?
Spinny eyes 25-30% revenue growth in FY26, targeting profitability by FY27 through 50+ hubs and EV focus. Analysts like Kotak see upside from volume scaling, but warn of 100-200 bps margin erosion if fuel prices spike. With India’s used car penetration at 15% (vs. 50% in China), long-term fundamentals shine.
Conclusion: Spinny’s FY25 – Progress Amid Pains
Spinny’s ₹423 crore loss in FY25—a 28% improvement—belies a revenue engine firing on all cylinders at ₹4,657 crore, positioning the unicorn for a breakout in India’s used car arena. As expansions yield, expect margins to firm up, but discipline will dictate if FY26 flips to profits. In a market ripe for disruption, Spinny’s full-stack bet could drive the next gear shift. ET
