IPO in 12-18 months; GST cut caused short-term pain but used-car disruption has begun: CARS24 CFO

Digital automotive marketplace CARS24 is working towards an initial public offering (IPO) that could be announced in the next 12-18 months, even as it navigates short-term policy-led disruptions and sharpens its focus on profitability, Shivanshu Makkar, CFO of CARS24, told Business Today. “The IPO is in the works and will be announced in the next 12-18 months,” he said.

Makkar said the recent GST reduction on new cars led to short-term pressure for the company as prices of new vehicles fell while CARS24 was holding inventory bought at higher levels. “The GST reduction was short-term pain for us because new car prices reduced and we were sitting on inventory,” he said. However, the impact was temporary. “December turned out to be our best month in terms of profitability.”

Despite the disruption, Makkar said structural changes have begun in India’s used-car market, with organised platforms steadily gaining share. “Disruption has started to happen in the used-car market. Over the next three to four years, we expect to reach close to a double-digit market share. We are already the largest player in India today and are targeting around 10% market share in 3-4 years,” he said.

The CFO added that while the overall used-car industry is growing at 10-12%, CARS24 is aiming to grow at nearly twice the industry pace, driven by retail expansion, financing, and operational efficiencies.

CARS24’s focus on improving unit economics is already reflecting in its numbers. The company reported an 18% year-on-year rise in adjusted net revenue to ₹651 crore in H1 FY26, even as overall vehicle transaction GMV remained largely flat, according to its latest performance update. During the same period, adjusted EBITDA losses narrowed 36% YoY to ₹162 crore.

In H1FY26, CARS24 facilitated nearly 85,000 car transactions across India, the UAE and Australia, and the company is on track to cross 1.8 lakh car transactions in FY26.

Retail continues to be a key profitability driver. “Retail margins have expanded by 3-4 percentage points year-on-year in H1 across India, Australia and the UAE,” Makkar said. He added that investments in technology and artificial intelligence have helped the company reduce operating expenses by around 1%, even as gross margins continued to improve. “This quarter is looking profitable,” he said.

Financing remains another strong growth engine. Loans disbursed through the platform rose 38% YoY to ₹1,637 crore in H1 FY26, underscoring the increasing role of credit in driving used-car demand.