Nasdaq-listed car-sharing marketplace Zoomcar Holdings Inc. reported a remarkable 76% year-over-year (YoY) reduction in net loss for the quarter ended 30 September 2025, primarily driven by a one-time gain from the derecognition of two overseas subsidiaries. The Bengaluru-based company’s performance reflects disciplined financial management and the growing resilience of its asset-light, peer-to-peer car-sharing model amid India’s mobility transition. This strong performance highlights Zoomcar Q2 FY26 results, demonstrating its continued progress toward profitability.

Zoomcar Q2 FY26: Financial Highlights

Zoomcar’s net loss narrowed to USD 0.79 million (INR 7.04 crore) during Q2 FY26, compared to USD 3.35 million (INR 29.68 crore) in the same period last year and USD 4.2 million (INR 37.2 crore) in the preceding quarter. Revenue from services stood at USD 2.28 million (INR 20.2 crore), reflecting a modest 2% YoY growth from USD 2.23 million (INR 19.8 crore). Total quarterly revenue, including other income of around USD 6,000, amounted to USD 2.29 million (INR 20.3 crore).

The improvement in profitability was largely attributed to a one-time gain of USD 1.7 million (INR 15.1 crore) following the derecognition of two foreign subsidiaries — Zoomcar Vietnam Mobility LLC and Zoomcar Egypt Car Rental LLC. The Vietnamese VIE derecognition contributed USD 0.4 million (INR 3.5 crore), while the Egyptian entity added USD 1.5 million (INR 13.3 crore). The subsidiaries were formally wound down during mid-2025 following bankruptcy and liquidation proceedings.

Total costs and expenses for the quarter rose 12% YoY to USD 4.27 million (~INR 38 crore), underscoring that cost rationalisation remains an ongoing effort.

Operational Strength: Eight Quarters of Contribution Profit

Despite headwinds, Zoomcar reported its eighth consecutive quarter of positive contribution profit, achieving USD 1.2 million (INR 10.6 crore) for the period. Contribution margins stood at 52% of GAAP revenue, a notable improvement from 37% in the corresponding quarter last year.

The company’s adjusted EBITDA improved by 14% YoY, aided by tighter expense control and increased operational efficiency. Zoomcar’s gross booking value reached USD 6.23 million (INR 55.2 crore), driven by organic demand and a 22% increase in average booking duration, even as total booking volume fell 6%.

High-quality hosts on the platform rose 46% YoY, while repeat users remained steady at 57%, signalling deepening user trust and engagement. The average trip rating improved to 4.76 out of 5, reflecting consistent service quality.

Zoomcar Q2 FY26: Strategic Model

Zoomcar continues to rely on its asset-light, peer-to-peer marketplace model, which eliminates the need for vehicle ownership or large-scale capital expenditure. With over one crore registered guests and 42,000 hosted cars across 99 Indian cities, the company’s “Host Flywheel” effect — where higher host earnings attract more listings and users — is proving effective in scaling organically.

AI-driven tools for dynamic pricing, utilisation optimisation, and risk management are at the core of Zoomcar’s efficiency. According to CEO Deepankar Tiwari, “Our performance this quarter highlights the resilience of our asset-light marketplace and the discipline driving profitable growth. We continue building a trusted community of hosts and guests as India accelerates its shift from car ownership to access.”

Zoomcar Funding Challenges

While operational metrics look healthy, Zoomcar’s liquidity remains strained. The company acknowledged in its SEC filings that it does not have sufficient funds to meet obligations within one year. To secure continuity, management is pursuing bridge financing of up to USD 5 million (INR 44 crore) and plans an “uplist raise” of USD 20 million (INR 177 crore) before FY26 end.

Earlier in May 2025, Zoomcar filed a registration statement with the SEC to raise USD 15 million (INR 133 crore), but was unable to attract capital at the time. CFO Sachin Gupta emphasised that “appropriate funding is the next step to launch this growth engine capable of delivering 10x growth in the next five years.”

Outlook

India’s car-sharing market is witnessing a structural shift from ownership to access. Zoomcar projects the self-drive car-sharing market to grow from 1.85 crore guests in 2025 to 6.5 crore by 2031. With car ownership at just 0.1 per household, the long-term opportunity remains substantial.

The company aims to achieve operating profitability in the next fiscal year and maintain contribution margins above 50% while scaling bookings organically. Its strategic roadmap also includes an uplisting on Nasdaq by 31 March 2026, accompanied by continued debt restructuring and disciplined cost management.

Conclusion

Zoomcar Q2 FY26 performance underscores a company in transition — moving from years of heavy losses toward disciplined, sustainable growth. The 76% decline in net loss, aided by non-recurring gains, highlights accounting relief but also validates the progress made through cost controls and operational efficiency.

However, the path ahead remains contingent on successful fundraising and sustained cash flow improvement. As India’s shared mobility ecosystem matures, Zoomcar’s proven marketplace model and expanding host network position it well — but survival hinges on the company’s ability to translate its operational momentum into financial stability.

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