Founder Stack

Cars24’s revenue continued to decline for the second consecutive year as the used-car marketplace navigated a challenging FY26 marked by cost cuts, layoffs and a series of senior-level exits. The company’s revenue from operations fell 18.3% to Rs 5,092 crore in the fiscal year ended March 2026, fromRs 6,233 crorein FY25 and Rs 6,917 crore in FY24, according to its consolidated financial statements filed with the Registrar of Companies (RoC). The sale of cars through its auction and retail businesses remained the biggest contributor, accounting for around 87% of operating revenue. However, revenue from this segment declined 22.7% to Rs 4,349 crore in FY26, pointing to stress in its core used-car business. The segment had already declined 11% in FY25, indicating that pressure on the core biz has persisted for a second consecutive year and weighed on overall scale. The remaining operating income came from financial services, including interest on loans provided through its Loans24 platform, as well as service fees, parking fees, and other offerings such as insurance assistance and warranties. These collectively contributed around Rs 653 crore during the year. Cars24 also recorded Rs 128 crore in other income, largely from interest on current deposits, taking its total income to Rs 5,220 crore, compared with Rs 6,358 crore in the previous fiscal year. With the business shrinking, car procurement remained the company’s largest cost centre but fell 23.7% to Rs 4,212 crore. However, employee benefit expenses rose 33.4% to Rs 806 crore, while marketing expenses remained broadly stable at Rs 105 crore. In the end, Cars24’s overall expenses declined 17.7% to Rs 5,674 crore during the last fiscal year. The company’s financial year also saw significant organisational changes. In April 2025, Cars24 laid off around200 employeesacross functions as part of a restructuring exercise, with CEO Vikram Chopra saying some projects and roles had been added prematurely. The leadership churn continued in 2026. India used-car CEOHimanshu Ratnoostepped down in March, with Chopra taking direct oversight of the business. Co-founderGajendra Jangidsubsequently stepped back from day-to-day operations, while co-founder and COOMehul Agrawalalso exited his operating role in April. Despite the decline in revenue, Cars24 narrowed its net loss by 18.8% to Rs 441 crore in FY26 from Rs 543 crore in FY25. Its EBITDA margin stood at 8.63%, while ROCE was 19.6% during the last fiscal year. Spinny has emerged as the leading player in India’s used-car retail space, with revenue growing over 28% in FY26, unlike Cars24, which saw another year of decline. Spinny touched the Rs 6,000 crore revenue threshold in FY26 and is expected to grow 25-30% in FY27, according to sources. The company also raised $320 million over the past year, giving it more room to scale as Cars24 works to regain momentum. For Cars24, the immediate priority is to restore growth in its used-car business before pursuing lar