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

Cars24 reported FY26 operating revenue of Rs 5,092 crore, down from Rs 6,233 crore a year earlier. Auction and retail revenue fell 22.7% to Rs 4,349 crore, while net loss narrowed 18.8% to Rs 441 crore after cost cuts. Rival Spinny reported revenue above Rs 6,000 crore.

— Source publishedFri, 4 Sept, 2026, 13:11 IST·First seen Fri, 4 Sept, 2026, 13:14 IST·Source Entrackr

What happened

Cars24’s FY26 operating revenue fell 18.3% to Rs 5,092 crore as core auction and used-car retail sales declined 22.7%. The company cut costs and narrowed its

Key facts

  • FY26 revenue from operations: Rs 5,092 crore, down 18.3% from Rs 6,233 crore in FY25
  • Car auction and retail revenue: Rs 4,349 crore, down 22.7%; 87% of operating revenue
  • Financial services and other operating income: around Rs 653 crore
  • Total income: Rs 5,220 crore versus Rs 6,358 crore in FY25
  • Car procurement costs: Rs 4,212 crore, down 23.7%
  • Employee benefit expenses: Rs 806 crore, up 33.4%
  • Marketing expenses: Rs 105 crore
  • Overall expenses: Rs 5,674 crore, down 17.7%
  • Net loss: Rs 441 crore, narrowed 18.8% from Rs 543 crore
  • EBITDA margin: 8.63%
  • ROCE: 19.6%
  • Around 200 employees laid off in April 2025
  • Spinny FY26 revenue: over Rs 6,000 crore, up over 28%
  • Spinny funding raised: $320 million
  • Spinny expected FY27 growth: 25-30%

Why this matters

Cars24’s shrinking core revenue base may increase its interest in partnerships or acquisitions that strengthen sourcing, retail conversion, financing, or market share versus larger rival Spinny.

What to watch

  • Quarterly auction-and-retail revenue trend versus the 22.7% FY26 decline.
  • Gross margin, inventory days, per-car contribution margin, and cash burn after cost reductions.
  • Evidence of city exits, layoffs, dealership-network changes, or reduced owned-inventory exposure.
  • Spinny's growth rate, funding activity, pricing promotions, and expansion into Cars24's core markets.
  • Used-car financing availability, interest rates, vehicle resale values, and consumer demand for discretionary auto purchases.
  • Any further capital raise, strategic investor entry, or consolidation discussions in organized used-car retail.
  • Reduce cash-intensive retail inventory and exit or shrink underperforming city operations.
  • Shift mix toward higher-velocity auctions, dealer transactions, financing, insurance, warranties, and refurbishment-light services.
  • Tighten vehicle acquisition criteria, shorten holding periods, and use more dynamic pricing to protect gross margins.
  • Pursue selective partnerships or capital raising to fund technology, inspection quality, and customer acquisition without restoring broad-based discounting.
  • Increase promotional and trust-building efforts around vehicle certification, buyback guarantees, and financing to defend conversion against Spinny.

Also reported by