Zoomcar Cuts Adjusted EBITDA Loss by 47%, Delivers Tenth Consecutive Quarter of Positive Contribution Profit

Contribution profit per booking rises 30% to $12.94; contribution margin expands 800 basis points to 55% of revenue; net loss attributable to shareholders narrows 43% to $14.62 million

BENGALURU, India, July 14, 2026 /PRNewswire/ -- Zoomcar Holdings, Inc. (OTCQB:ZCAR), India's largest peer-to-peer car-sharing marketplace, today reported financial results for the fiscal year ended March 31, 2026, capping a year in which the company deliberately traded volume for profitability and, by nearly every measure that matters, was proven right.

Contribution profit rose 19 percent to $5.07 million, representing 55 percent of net revenue, an expansion of 800 basis points over the prior fiscal year. Adjusted EBITDA loss narrowed by 47 percent to $5.22 million from $9.91 million. Net loss attributable to shareholders fell 43 percent, to $14.62 million from $25.62 million. Loss from operations improved 35 percent to $6.77 million. And for the tenth consecutive quarter, the marketplace generated positive contribution profit, a run that now stretches back two and a half years.

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 $0.20 million, and host incentives declined 26 percent. Yet contribution profit per booking climbed 30 percent, to $12.94 from $9.96. Gross booking value held essentially flat at $25.27 million — the same volume of commerce moving across the platform, on some 35,000 fewer bookings, each of them materially more profitable.

"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 $4.43 million, lifting gross profit 24 percent to $4.73 million on essentially flat revenue of $9.16 million. Finance costs declined 63 percent to $3.18 million as the company continued to restructure its balance sheet, and other expenses, net, fell 39 percent.

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 U.S. national securities exchange. Debt restructuring remains ongoing, with the company working toward positive net worth on minimal cash burn.

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.

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.

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