Cars24 FY26 revenue drops 18% as core used-car business falls 23%

Cars24 India reported FY26 revenue of Rs 5,092 crore, down from Rs 6,223 crore a year earlier. Its core car auction and retail business fell 23%, while net loss narrowed 19% to Rs 441 crore on lower procurement costs. Ancillary services and vehicle-backed lending grew as the company prepares for an India IPO.

— Source publishedMon, 7 Sept, 2026, 17:48 IST·First seen Mon, 7 Sept, 2026, 22:06 IST·Source Medianama

What happened

Cars24 India’s FY26 revenue fell 18% as its core used-car auction and retail business declined 23%. Losses narrowed through lower procurement costs and AI-led

Key facts

  • FY26 revenue from operations: Rs 5,092 crore, down 18% from Rs 6,223 crore in FY25
  • Core car auction and retail revenue: Rs 4,439 crore, down 23% from Rs 5,746 crore
  • FY26 net loss: Rs 441 crore, down 19% from Rs 543 crore
  • Car procurement costs: Rs 4,212 crore, down 24%
  • Loans against cars disbursed: Rs 3,426 crore
  • Ancillary automotive-services revenue: Rs 653 crore, up 34%
  • Cars24 Labs AI commitment: $20 million

Why this matters

Cars24’s expanding vehicle-backed lending and ancillary businesses create partnership opportunities with lenders, insurers and service providers as it diversifies beyond volatile used-car sales.

What to watch

  • Quarterly core auction and retail volumes, take rates and average selling prices.
  • Gross margin and inventory-days trends, especially whether procurement savings persist.
  • Ancillary-services and lending growth relative to declining vehicle-sales revenue.
  • Loan-originations, delinquency/NPA indicators, funding costs and provisioning needs.
  • Cash burn, adjusted EBITDA trajectory and any IPO filing, banker appointment or pre-IPO fundraising.
  • Used-car pricing, new-car discounting and financing-rate trends in India.
  • Reduce low-margin inventory exposure and concentrate sourcing in faster-turning models and geographies.
  • Expand vehicle-backed lending, warranties, inspections and other ancillary products to raise revenue per transaction.
  • Use lower procurement costs to protect gross margins rather than pursue broad price-led volume growth.
  • Strengthen underwriting, collections and loan-book risk controls as lending becomes a larger share of growth.
  • Frame IPO preparation around improving unit economics, reduced cash burn and a diversified revenue mix.