Zoomcar Cuts Adjusted EBITDA Loss by 47%, Delivers Tenth Consecutive Quarter of Positive Contribution Profit
Rhea-AI Summary
Zoomcar (OTCQB: ZCAR) reported fiscal year 2026 results for the year ended March 31, 2026, highlighting a strategic shift from volume to profitability. Contribution profit increased 19% to $5.07 million, reaching 55% of net revenue, while contribution profit per booking rose 30% to $12.94.
Adjusted EBITDA loss narrowed 47% to $5.22 million, net loss attributable to shareholders declined 43% to $14.62 million, and loss from operations improved 35% to $6.77 million. According to Zoomcar, this marks the tenth consecutive quarter of positive contribution profit. Cost of revenue fell 16% to $4.43 million, lifting gross profit 24% to $4.73 million on essentially flat revenue of $9.16 million. Gross booking value was stable at $25.27 million, despite bookings falling 8% to 391,302 as the company cut performance marketing and host incentives.
Positive
- Contribution profit up 19% to $5.07 million, 55% of net revenue
- Adjusted EBITDA loss reduced 47% to $5.22 million
- Net loss attributable to shareholders narrowed 43% to $14.62 million
- Loss from operations improved 35% to $6.77 million
- Ten consecutive quarters of positive contribution profit
- Contribution profit per booking up 30% to $12.94
- Gross profit up 24% to $4.73 million on flat $9.16 million revenue
- Cost of revenue decreased 16% to $4.43 million
- Finance costs declined 63% to $3.18 million
- Marketing costs (excluding brand) cut by roughly two-thirds to $0.20 million
- Repeat users contributed 51% of bookings for six-plus quarters
- Average guest trip rating improved to 4.77/5; high-rated hosts up 7%
Negative
- Net loss attributable to shareholders still $14.62 million
- Adjusted EBITDA remains negative at $5.22 million loss
- Loss from operations remains $6.77 million
- Bookings declined 8% to 391,302 with roughly 35,000 fewer bookings
- Gross booking value flat at $25.27 million, indicating no top-line growth
- Debt restructuring and growth capital raise remain ongoing
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Contribution profit per booking rises
BENGALURU,
Contribution profit rose 19 percent to
What makes the year unusual is how it was achieved. Zoomcar spent dramatically less to acquire demand, not more. Marketing costs excluding brand marketing fell by roughly two-thirds to
"We made a deliberate decision this year: stop buying growth, and prove the marketplace can stand on its own economics," said Deepankar Tiwari, Chief Executive Officer of Zoomcar. "Ten consecutive quarters of positive contribution profit is not a streak. It is a structural result. Every booking on our platform is now meaningfully more profitable than it was a year ago, and it is happening without discounting, without paid acquisition at scale, and with more than half our bookings coming from guests who simply chose to come back."
Bookings declined 8 percent year over year, to 391,302 from 426,788 — the direct and intended consequence of withdrawing performance marketing spend and prioritizing higher-value, higher-retention trips. Beneath that headline, the quality of demand strengthened across the board. Repeat users accounted for 51 percent of all bookings, a level the company has now sustained for more than six consecutive quarters without significant incentivization or discounting. Average guest trip rating improved to 4.77 out of five, from 4.69. The number of hosts rated 4.5 or above grew 7 percent, deepening supply-side quality on the platform. Zoomcar continues to record approximately 700,000 monthly rental sessions with no performance marketing spend behind them, and organic traffic converts at roughly twice the rate of paid.
The cost base was reset in parallel. Cost of revenue fell 16 percent to
Zoomcar continues to execute a multi-track plan to strengthen its balance sheet and fund the next phase of expansion. The company is actively raising growth capital, has launched a warrant exchange tender offer to simplify its capital structure, and has engaged an investment bank to help with a potential uplist to a premier
About Zoomcar
Founded in 2013 and headquartered in Bengaluru, Zoomcar is India's largest peer-to-peer car-sharing marketplace. Through its digital-first platform, Zoomcar connects individual vehicle owners (Hosts) with users (Guests), offering flexible access to vehicles for self-drive carsharing. The company's mission is to promote smarter, shared mobility that is both economically empowering and environmentally sustainable.
Forward Looking Statement
Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," and similar words are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning our expected revenue growth and improved profitability, and our financial forecasts. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by us, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.
Non-GAAP Financial Measure:
To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: contribution margin, and adjusted EBITDA. A reconciliation of GAAP to adjusted non-GAAP financial measures is included as an attachment to this press release. We believe these non-GAAP financial measures are useful to investors in assessing our operating performance. We use these financial measures internally to evaluate our operating performance and for planning and forecasting of future periods. We also believe it is in the best interests of investors to provide this non-GAAP information. While we believe these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Reconciliation of GAAP to Non-GAAP Metrics
The following is the reconciliation of adjusted EBITDA to the most comparable GAAP measure for the Fiscal Year ending Mar 31, 2026 as compared to Mar 31, 2025.
Particulars
| For the Years Ended March 31, | |
2026 | 2025 | |
Net (Loss) | ||
Add/ (deduct) | ||
Stock-based compensation | 1,453,968 | 52,461 |
Depreciation and amortization | 91,766 | 433,905 |
Finance costs | 3,183,148 | 8,607,173 |
Other (income)/expense, net | 4,743,294 | 7,785,292 |
Gain on troubled debt restructuring | (72,912) | (1,171,161) |
Adjusted EBITDA | ||
Adjusted EBITDA is a non-GAAP financial measure that represents our net income or loss adjusted for (i) depreciation and amortization (ii) finance costs, (iii) Gain on troubled debt restructuring and (iv) Other income/Expense.
Contribution Profit/(Loss)
The following is the calculation of Contribution Profit/(Loss) to the most comparable GAAP measure for the fiscal year ending Mar 31 2026 as compared to Mar 31, 2025.
Particulars
| For the Years Ended March 31, | |
2026 | 2025 | |
Net revenue | $ 9,156,025 | $ 9,105,891 |
Cost of revenue | 4,428,965 | 5,296,841 |
Gross profit/(loss) | 4,727,060 | 3,809,050 |
Add: Depreciation and amortization in COR | 43,534 | 340,188 |
Add: Stock-based compensation in COR | 40,110 | 3,650 |
Add: Overhead costs in COR (rent, software support, | 566,815 | 840,289 |
Less: Host Incentives and Marketing costs (excl. brand | 312,250 | 742,399 |
Less: Host incentives | 109,475 | 147,180 |
Less: Marketing costs (excl. brand marketing) | 202,775 | 595,219 |
Contribution profit | $ 5,065,269 | $ 4,250,778 |
Contribution margin | 55 % | 47 % |
We define contribution profit (loss) as our gross profit/(loss) plus (a) depreciation expense included in cost of revenue,(b) other general costs included in cost of revenue (rent, software support, insurance, travel); less (i) Host incentive payments and (ii) marketing and promotional expenses (excluding brand marketing).
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SOURCE Zoomcar