Cars24 India Revenue Declines for Second Consecutive Year
Used-car marketplace Cars24 India's revenue fell 18% in FY26 to Rs 5,092 crore. The company narrowed losses, attributing improvements to AI integration.
Cars24 India, a marketplace for used cars, reported a continued revenue decline for the second consecutive year in the fiscal year ending March 2026 (FY26). Total revenue from operations decreased by over 18% to Rs 5,092 crore, down from Rs 6,223 crore in the previous fiscal year.
The core business segment, which includes car auctions and retail sales, experienced a significant contraction. Revenue from this core segment dropped 23% to Rs 4,439 crore in FY26, compared to Rs 5,746 crore in FY25. This downturn in the primary sales channel contributed to the overall revenue decrease.
Despite the revenue drop, Cars24 India managed to reduce its net loss by 19% to Rs 441 crore in FY26, compared to Rs 543 crore in FY25. The company stated that the improved bottom line was partly due to the integration of Artificial Intelligence (AI) into its operations, which helped manage operating costs effectively.
Cars24 is actively investing in AI, committing $20 million to a new initiative called Cars24 Labs. This division will focus on developing proprietary AI products, collaborating with AI companies, and supporting early-stage AI startups. These efforts coincide with the company's preparations for a public listing in India, including a redomiciliation from Singapore.