Zoom car reports record profit contribution and narrows losses in FY25.

Zoomcar has reported a prominent turnaround in its FY25 financials, posting a record contribution profit of USD 4.25 million and rescuing operating losses by 67 per cent. The car-sharing company attributes the results to improved host quality, guest retention, and significant cost optimisation measures. Booking and repeat usage also saw growth, while expenses and cash burn declined in sustainability.

Zoomcar Holdings Inc. has posted a significant improvement in its financial performance for the fiscal year ending March 31 2025, driven by stronger host quality, enhanced guest retention and cost-saving initiatives. The car-sharing company reported a contribution profit of USD 4.25 million, accounting for 47 per cent of its revenue, a notable shift from the USD 0.98 million loss recorded in FY24. Contribution profit per booking increased from USD 2.52 to USD 9.96, marking six consecutive quarters of profitability on a contribution basis.

Zoomcar also witnessed a rise in demand. Bookings rose 10 per cent year-over-year to 426,788 in FY25, with the usage rate nearly doubling to 13 per cent, up from 7 per cent in FY24. The company attributes this growth to improved user experience and loyalty initiatives.

Cost optimisation was a key contributor to Zoomcar’s turnaround. The cost of revenue decreased by nearly half, from USD 10.33 million to USD 5.30 million, due to operational efficiencies and dynamic pricing strategies. Marketing expenditure decreased by 75 per cent, while general and administrative expenses fell by 43 per cent. Technology costs also decreased by 32%. As a result, total expenses fell from USD 41.57 million in FY24 to USD 19.51 million in FY25, significantly reducing the company’s cash burn. Adjusted EBITDA loss improved by 44 per cent, shrinking from USD 17.85 million to USD 9.91 million. Operating losses also decreased markedly to USD 10.40 million, down from USD 31.67 million the previous year.

Operational performance showed gains in customer satisfaction. The average guest trip rating improved from 4.16 to 4.70. High-quality vehicles, rated 4.5 stars or higher, made up 49 per cent of the fleet, up from 31 per cent.

Zoomcar has also introduced advanced vehicle inspection and safety features in partnership with an external provider and is preparing to launch new B2B tools to assist fleet operators.

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Zoom Car Reports Record Profit Contribution And Narrows Losses In FY25

News Source : Economic Times