Zoomcar Posts Record FY25 Profit Amid Rising Car-Sharing Demand

Peer-to-peer car-sharing platform Zoomcar Holdings posted a record contribution profit of $4.25 million for the fiscal year ending March 31, 2025, a dramatic turnaround from a contribution loss of nearly $1 million in the previous year.

The Bangalore-based company saw its contribution margin swing from negative 10% to positive 47% year-over-year, driven by improved operational efficiency and stronger customer retention, the company said. 

Zoomcar's bookings grew 10% to 426,788 in fiscal 2025, up from 387,821 in the prior year. More significantly, the company's repeat user rate surged 86%, climbing from 7% to 13% as product improvements and loyalty programs took hold.

"FY 2025 was a pivotal year for Zoomcar as we strengthened our marketplace fundamentals and achieved new financial milestones," said CEO Deepankar Tiwari. "We continued to see meaningful improvements in guest repeat behavior and host retention – core elements that drive scale and sustainability."

The company has now posted six consecutive quarters of positive contribution profit, suggesting its business model adjustments are gaining traction in India's competitive mobility market.

Much of Zoomcar's improved performance stems from aggressive cost optimization. The company slashed its cost of revenue by 49% to $5.30 million, while marketing expenses plummeted 75%. General and administrative costs fell 43%, and technology-related expenses dropped 32%.

Overall, total costs and expenses decreased from $41.57 million in fiscal 2024 to $19.51 million in fiscal 2025 – a reduction that directly supported the company's improved unit economics, the company said. 

The company's adjusted EBITDA loss also narrowed significantly, improving 44% from a loss of $17.85 million to $9.91 million. Operating losses were cut by 67%, falling from $31.67 million to $10.40 million.

Operational metrics suggest Zoomcar's focus on service quality is paying dividends. Average guest trip ratings rose to 4.70 from 4.16 in the previous year, while the percentage of high-quality vehicles (rated 4.5 or above) increased from 31% to 49%.

The company has launched advanced vehicle inspection protocols and GPS safety features in partnership with ecosystem players, while rolling out new business-to-business tools to help fleet operators manage inventory more effectively.

Zoomcar is betting on artificial intelligence and automation to drive its next phase of growth. The company has implemented AI-powered customer support and fraud detection systems, which it says have improved platform efficiency and user trust.

"We remain focused on improving the customer experience and leveraging technology to unlock greater value for our guests and hosts," Tiwari said.

The results come as India's shared mobility sector continues to evolve, with companies balancing growth ambitions against profitability pressures. Zoomcar's peer-to-peer model, which connects vehicle owners with renters, differentiates it from traditional rental companies and ride-hailing services.

Founded in 2013, Zoomcar has positioned itself as a leader in India's car-sharing space, though it faces competition from both domestic players and international companies expanding into the Indian market.