The company realised a one-time gain of $1.23 Mn during the quarter under review on the back of write-back of contractor-related liabilities
Zoomcar reported a 3% decline in operating revenue to $2.37 Mn during the quarter from $2.45 Mn in the year-ago period
The company flagged a “substantial doubt” about its ability to continue as a going concern, with its management saying that its existing cash can fund operations only until March 31, 2026
Nasdaq-listed rental car platform Zoomcar managed to cut its net loss for the three months ended December 2025 by 91% to $721K from $7.92 Mn in the year-ago period on the back of a one-time gain. On a sequential basis, the company’s net loss declined 9% from $794K.
The company realised a one-time gain of $1.23 Mn during the quarter under review. This gain came on the back of a $1.33 Mn write-back of contractor-related liabilities following a reassessment triggered by the introduction of a new labour code, along with recovery of GST receivables. This gain was partially offset by a loss arising from a “litigation settlement”.
Meanwhile, Zoomcar reported a 3% decline in operating revenue to $2.37 Mn during the quarter from $2.45 Mn in the year-ago period. However, this marked a 4% uptick from $2.28 Mn in the previous quarter.
Zoomcar managed to bring its total costs and expenses down by 33% to $3.84 Mn during the quarter from $5.69 Mn in the year-ago quarter.
In its SEC filing pertaining to the financial performance for the quarter, the company again flagged a “substantial doubt” about its ability to continue as a going concern.
Due to sustained operating losses, negative cash flows and limited liquidity, Zoomcar’s management said that its existing cash can fund operations only until March 31, 2026.
“As of December 31, 2025, the company has defaulted on debt obligations owed to various lenders totaling to $1.01 Mn. Further, the company has recorded penal interest expense amounting to $22,804 and $66,502 for the three months and nine months ended December 31, 2025, respectively,” it said.
Over the past year, Zoomcar has relied heavily on bridge financings, discounted notes and warrant-linked deals to stay afloat, raising capital through multiple placements and convertible instruments. Many of these financing deals carry steep interest rates, original issue discounts and default penalties.
As of now, the company is in the process of raising additional capital to support growth initiatives, including a private placement bridge financing with a minimum raise of $2 Mn and up to $10 Mn, including an overallotment option.
It has also launched a tender offer to exchange existing investor warrants for shares of common stock. Besides, it claimed to be evaluating a possible uplisting to a US national securities exchange and continues to restructure existing debt obligations to strengthen its balance sheet.
“The company believes that current cash and cash equivalents will allow the company to continue operations through March 31, 2026 assuming that the company makes no payments on its currently outstanding indebtedness and only pays current operating accruals, however, there can be no assurance that this will be the case… The company will still need to seek financing for the purpose of raising additional funds to be able to meet its obligations and so that there will no longer be substantial doubt about its ability to continue as a going concern,” Zoomcar said.
Although the balance sheet continues to look grim, the car-sharing marketplace claimed to have recorded its “ninth consecutive quarter of positive contribution profit.”
In its earnings release, Zoomcar said its adjusted EBITDA loss improved 74% YoY to $0.83 Mn.
Zoomcar CEO Deepankar Tiwari said Q3 was a reflection of its stronger booking level economics and continued operating discipline.
“With repeat usage remaining resilient without significant promotion spend, we believe we’re well positioned to consolidate India’s peer-to-peer mobility market as consumer preferences shift from ownership to access,” he noted.
The company’s shares were trading 2.74% higher at $0.075 on the Nasdaq at 21:25 IST. The company’s share prices have plunged 99.65% from $21.4 on February 18, 2025.
Comments are closed.