Zoomcar narrows losses by 48% as contribution profit hits record

BENGALURU - India’s car-sharing marketplace Zoomcar Holdings, Inc. (OTCQX:ZCAR) reported a significant improvement in its financial performance for the quarter ended June 30, 2025, with contribution profit reaching $1.14 million and operating losses narrowing by 48%. According to InvestingPro data, the company’s financial health score remains weak at 1.45 out of 10, with annual revenue of $9.11 million showing an 8% decline over the last twelve months.

The company achieved a contribution profit margin of 49% of GAAP revenue, compared to 20% in the same quarter last year. This marks the seventh consecutive quarter of positive contribution profit for Zoomcar, according to the company’s financial results released Thursday.

Operating losses decreased to $1.76 million from $3.37 million in the comparable period last year, while adjusted EBITDA loss narrowed by 47% to $1.73 million.

The improved financial performance came despite a 7% decline in bookings to 104,549. However, Zoomcar reported a 45% increase in repeat user rate compared to the same quarter last year.

Cost management initiatives played a key role in the quarter’s results, with cost of revenue decreasing 13% to $1.31 million. Marketing spend saw a dramatic 78% reduction, while general and administrative expenses fell 22% and technology-related expenses decreased 21%.

"FQ-1 2025 was a pivotal quarter for Zoomcar as we strengthened our marketplace fundamentals and achieved new financial milestones," said Deepankar Tiwari, CEO of Zoomcar, in the press release statement.

The company also reported improvements in operational metrics, with average guest trip ratings rising to 4.73 from 4.71 in the prior year. The percentage of high-quality cars on the platform increased by 54% quarter-over-quarter.

During the quarter, Zoomcar integrated Google Cloud AI to enhance onboarding and safety features, partnered with CARS24 for verified host vehicles, and launched ZoomPro, a toolkit for business fleet partners.

Founded in 2013, Zoomcar operates a peer-to-peer car-sharing marketplace connecting vehicle owners with users seeking self-drive options. Despite recent operational improvements, InvestingPro data shows the stock has faced significant challenges, with a -98.59% year-to-date return and a concerning debt-to-capital ratio of 0.82. For detailed insights and expert analysis on Zoomcar and 1,400+ other stocks, explore the comprehensive Pro Research Reports available on InvestingPro.

In other recent news, Zoomcar has expanded its home delivery service to 14 cities across India. The company has enhanced its delivery capabilities by revamping its host delivery system and partnering with third-party driver platforms. This dual approach aims to ensure efficient deliveries even when hosts are unavailable. Additionally, Zoomcar introduced "ZoomPro," a new business-to-business dashboard for fleet operators. This platform allows fleet partners to manage vehicles, pricing, and bookings more effectively. Key features of ZoomPro include centralized booking views, multi-user access, real-time vehicle reassignment, performance tracking, and AI-driven pricing recommendations. These developments highlight Zoomcar’s ongoing efforts to improve service offerings and operational efficiency in India.

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