Zoomcar (NASDAQ:ZCAR) said it narrowed losses and improved per-booking economics in the fiscal year ended March 31, 2026, even as total bookings declined, with management framing the results as evidence that the company has shifted from subsidized growth toward a more disciplined marketplace model.
On the company’s earnings call, Deepankar said Zoomcar deliberately reduced performance marketing, cut discounting and stopped pursuing bookings that did not pay for themselves. Bookings fell 8% year over year to about 391,000 from 427,000, while gross booking value was essentially flat at $25.27 million.
Revenue Holds Flat as Contribution Profit Rises
Chief Financial Officer Sachin Gupta said revenue rose about 1% to $9.16 million for the year. Contribution profit increased to $5.07 million from $4.25 million, a 19% improvement. Contribution profit per booking rose 30% to $12.94 from $9.96, while contribution margin as a percentage of revenue expanded to 55% from 47%.
Gupta said the company’s loss from operations improved 35% to $6.77 million from $10.4 million. Excluding $1.45 million of non-cash costs tied to restricted stock unit issuances to management, employees and the board, loss from operations was $5.32 million, which he described as a 49% improvement on a comparable basis.
Adjusted EBITDA loss declined 47% to $5.22 million from $9.91 million. Loss attributable to shareholders decreased 43% to $14.62 million from $25.62 million, representing an $11 million reduction in losses year over year.
Management Highlights Organic Demand and Repeat Usage
Management emphasized Zoomcar’s brand position in India, describing the company as the country’s largest peer-to-peer car-sharing marketplace, operating in more than 100 cities with more than 10 million registered guests and over 42,000 cars listed by hosts.
Deepankar said the company has 90% brand awareness and ranks first in search and brand recall for car rentals in India. He also said Zoomcar sees close to 1 million monthly rental sessions without performance marketing spend, with organic traffic converting at twice the rate of paid traffic.
Repeat users accounted for 51% of monthly trips, a level management said has held without meaningful incentives or discounts for more than six quarters. Hosts with ratings of 4.5 or higher grew 7% year over year, and the average guest trip rating increased to 4.77 from 4.69, according to Gupta.
Ten Consecutive Quarters of Positive Contribution Profit
Gupta said the fiscal year marked Zoomcar’s 10th consecutive quarter of positive contribution profit. He noted that the company first generated contribution profit in the December 2023 quarter after previously losing about $2.50 per booking.
In recent quarters, contribution profit has held around $1.3 million, with the quarter ended March 31, 2026, producing about $1.35 million. Gupta said the pattern shows “consistent, dependable” contribution profit despite lower spending and a pullback from paid acquisition.
Adjusted EBITDA losses also narrowed on a quarterly basis. Gupta said Zoomcar recorded an adjusted EBITDA loss of $4.03 million in the March 2024 quarter, $2.03 million in the March 2025 quarter and $1.4 million in the March 2026 quarter.
“We are not yet at adjusted EBITDA breakeven, but you can see the slope,” Gupta said. “You can see the distance that is yet to be covered.”
Capital Raising and Balance Sheet Actions
Zoomcar said it is actively raising growth capital for its next phase of expansion. Gupta said the company launched a private placement bridge round with a minimum of $1 million and up to $10 million, including over-allotment. As of the call, Zoomcar had raised about $1.8 million in gross proceeds and aimed to raise the remainder over the next few weeks.
The company also launched a warrant exchange tender offer intended to simplify its capital structure. Gupta said Zoomcar has engaged an investment banker to support an uplisting process to a “premier national U.S. stock exchange” and continues to pursue debt restructuring to reduce balance sheet burden and work toward positive net worth and lower cash burn.
Gupta said finance costs declined to $3.18 million from $8.6 million a year earlier, primarily due to debt restructuring efforts, and added that management expects more benefits from restructuring in coming quarters.
Market Opportunity
Management pointed to India’s self-drive car-sharing market as a long-term growth opportunity, citing projections that the market could grow from almost 18 million users today to about 65 million users by 2031, representing a $28.6 billion opportunity.
Deepankar said India’s low car ownership rate, large internet user base and young demographic profile support a shift from ownership to access. He said Zoomcar’s contribution margin per booking has moved from negative $2.50 in September 2023 to positive $12.94 as of March 2026.
“The question is no longer does this work?” Deepankar said. “The question is how fast we can scale it.”
About Zoomcar (NASDAQ:ZCAR)
Zoomcar (NASDAQ:ZCAR) operates a technology-driven self-drive car rental platform designed to provide consumers with flexible, on-demand access to vehicles through a mobile and web interface. The company’s service offering spans hourly, daily and extended-use rentals, combining vehicle usage, fuel, insurance and maintenance into a single streamlined package. Zoomcar’s model emphasizes convenience, allowing users to book, unlock and track vehicles without intermediary steps or point-to-point drop-off constraints.
Founded in 2013 and headquartered in Bengaluru, India, Zoomcar has expanded rapidly across key urban centers including Bangalore, Delhi, Mumbai, Pune and Hyderabad.
