Zoomcar’s net loss rose 28% YoY to $5.37 Mn in the June quarter, even as its adjusted EBITDA loss narrowed 65% to $0.61 Mn
The company’s core business showed improvement, with higher contribution margins and lower operating costs, although rising finance and other expenses continued to weigh on its bottom line
Revenue rose 1.7% YoY to $2.4 Mn, contribution margin increased to 70% from 49%, bookings fell 16% to 88,160, and Zoomcar has raised $1.8 Mn through its ongoing bridge financing round
Rental car platform Zoomcarwhich was erstwhile listed on Nasdaq, saw its net loss balloon 28% to $5.4 Mn in the quarter ended June 30, 2026 from $4.2 Mn in the previous year quarter.
Net revenue for the quarter remained largely flat at $2.4 Mn. The flat revenue came at the behest of a 10% YoY decline in gross booking value to $5.8 Mn in the quarter.
In a statement, the company said that the lower booking count during the quarter was deliberate. It attributed the decline to it pivoting its business model towards longer, high-value trips rather than volume.
Now, the company is targeting extended trips, as it claims that the same earn more than several short ones against broadly the same operational cost to serve. In line with this, Zoomcar said that value per booking rose approximately 7% to $66.
While the company’s net loss continued to increase in the quarter, it managed to trim its adjusted EBITDA loss by about 65% to $611K. The adjusted EBITDA is adjusted for depreciation and amortisation, finance costs, gain on troubled debt restructuring and other expenses.
“Cost of revenue fell 38% to $0.81 Mn, driven principally by a reduction in loss from accidental damage and theft following changes to insurance coverage and loss-prevention measures, lifting gross profit to 65%,” the company claimed.
However, higher non-operating expenses continued to weigh on the bottom line. Finance costs climbed to $1.40 Mn, while other net expenses increased to $3.1 Mn from $2.1 Mn. Zoomcar also recorded $0.25 Mn in stock-based compensation during the quarter, compared with nil a year earlier.
Despite the claims, Zoomcar continues to operate under financial strain. For the fiscal year FY26, Zoomcar managed to trim its net loss by 43% to $14.6 Mn from $25.6 Mn in the previous year while net revenue remained flat at $9.2 Mn.
Last year, the company’s management had said that its existing cash can fund operations only until March 31, 2026 due to sustained operating losses, negative cash flows and limited liquidity.
As of now, Zoomcar is seeking fresh capital through a private placement bridge financing round, with allotments ranging from $1 Mn to $10 Mn, including overallotment. The company has raised about $1.8 Mn so far.
Important to highlight that Zoomcar has relied heavily on bridge financings, discounted notes and warrant-linked deals to stay afloat, raising capital via multiple placements and convertible instruments since 2025.
The company was delisted from Nasdaq after failing to meet listing requirements. Trading was suspended on May 8, 2025, following a delisting notice issued on May 6, 2025, and its shares subsequently moved to the OTC Markets.
Zoomcar’s Business Experiments
Amid the financial constraints, Zoomcar claims that it has now completed more than 5.1 Mn lifetime trips across 109 cities for over 2 Mn unique customers.
“Five million trips is not a vanity number, it is the reason the margin moved. You do not learn to price a booking, screen a host or resolve a dispute cheaply until you have done it several million times. This quarter a booking was worth $18.75 after everything it cost to serve. Three years ago that number was negative,” Zoomcar CEO Deepankar Tiwari said.
Yesterday, Zoomcar partnered with ride-hailing major Uber to let users book Uber Intercity rides through the Zoomcar app.
The partnership gives Zoomcar app users the choice to pick a self-drive option or take a back seat with an Uber Intercity driver at the wheel while comparing the options at one place and choosing what suits them best for their travel needs.
During the quarter, the company also expanded into two-wheelers, launching motorcycle and scooter rentals in Bengaluru for daily commuting and short-distance travel. It plans to assess the model before taking it to other cities through partnerships with local operators and two-wheeler manufacturers.