CARS24 Prepares for IPO as Focus Shifts to Profitability and Growth

Digital automotive marketplace CARS24 is preparing for an initial public offering (IPO) that could be announced in the next 12 to 18 months, even as it deals with short-term policy disruptions and sharpens its focus on profitability. As per news reports from Business Today, the company’s leadership has indicated that the IPO plans are actively underway.

While recent policy changes created temporary challenges, CARS24 believes the long-term outlook for India’s used-car market remains strong. The company sees growing opportunities as organised digital platforms continue to gain share in a largely fragmented market.

Short-Term Policy Impact, Long-Term Confidence

A recent reduction in GST on new cars led to short-term pressure for CARS24, as prices of new vehicles declined while the company was holding inventory purchased at higher prices. This mismatch affected margins temporarily. However, the impact was short-lived, and the company reported that December emerged as its strongest month in terms of profitability.

Despite such disruptions, CARS24 expects structural changes in the used-car ecosystem to work in its favour. The company currently holds the largest share among organised players and aims to reach around 10% market share over the next three to four years. While the overall used-car industry is growing at 10–12%, CARS24 is targeting growth at nearly double that pace.

Improving Financial Performance

CARS24’s growing focus on unit economics is already visible in its financials. In H1 FY26, the company reported an 18% year-on-year increase in adjusted net revenue to ₹651 crore, even as vehicle transaction GMV remained largely flat. At the same time, adjusted EBITDA losses narrowed by 36% YoY to ₹162 crore, indicating improving operational efficiency.

During the first half of FY26, CARS24 facilitated nearly 85,000 car transactions across India, the UAE and Australia. The company is on track to cross 1.8 lakh transactions in the full financial year.

Retail, Technology and Financing Drive Growth

Retail operations remain a key profitability driver. Retail margins expanded by 3–4 percentage points year-on-year across India, Australia and the UAE in H1 FY26. Investments in technology and artificial intelligence helped reduce operating expenses by around 1%, while gross margins continued to improve.

Financing has also emerged as a major growth engine. Loans disbursed through the platform rose 38% YoY to ₹1,637 crore in H1 FY26, highlighting the growing role of credit in used-car purchases.

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Conclusion

As CARS24 works towards its IPO, its improving financial metrics, focus on profitability and ambition to scale faster than the industry place it firmly among India’s leading auto-tech platforms. With rising interest in listings such as the CarTrade IPO, investor attention on the online automotive space is likely to remain strong in the coming months.

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