Q3 2025 Zoomcar Holdings Inc Earnings Call
Speaker #3: We have also launched a tender offer to exchange our existing investor warrants for shares of common stock as part of our effort to simplify and strengthen our capital structure.
Speaker #3: In parallel, we've engaged a banker and are evaluating a potential uplift to a U.S. national stock exchange. And we continue to restructure our existing debt obligations to further strengthen the balance sheet and improve long-term financial sustainability.
Speaker #3: We believe all of these efforts will help us generate long-term, sustainable value for all our stakeholders. We'll now briefly cover the reconciliation of the GAAP and non-GAAP measures from the closest GAAP measures that are reported.
Speaker #3: Onto the contribution profit reconciliation slide. These are non-GAAP measures which are arrived at by adding to the gross margin all of our non-cash expenses, overhead, and cloud costs, which are part of cost of revenue, and reducing from that the performance marketing spends and host incentives, if any spend, which are akin to generating revenue.
Speaker #3: The next slide provides a reconciliation of another non-GAAP measure, which is adjusted EBITDA, which provides a clear picture of our overall profitability of the business after eliminating all one-time and non-cash expenses and income line items reported in the profit and loss during the relevant period.
Speaker #3: Both of these non-GAAP measures should be read along with and not as a replacement to the GAAP measures, published in the press release made earlier in the day today.
Speaker #3: Presented in the slides during the earnings call and would also be reported in the thank you that will be filed in the later in the day today.
Speaker #3: Over to our CEO, Dipanka, to summarize the turnaround story.
Speaker #4: Thank you, Sachin. Let me briefly summarize the five big wins from the quarter. That together show the turnaround is both real and durable. First, the gross booking value was 6.60 million dollars.
Speaker #4: Up year over year, an importantly this came through organic growth without any paid marketing. That's a strong signal of brand-led demand. Second, the repeat behavior continued to strengthen.
Speaker #4: Repeat users contributing to 58% of our bookings. That kind of stickiness is exactly what we want in a marketplace business. Third, the unit economics improved further.
Speaker #4: Contribution per booking increased to 14.10 dollars from 12.39 12.39 dollars translating to 1.38 million dollars of contribution profit for the quarter. This is the core operating engine of our model getting stronger.
Speaker #4: Fourth, we generated meaningful operating leverage. Our adjusted EBITDA improved to 0.83 million dollars a 74% improvement year over year. And last but not the least, the fifth, the bottom line improved meaningfully.
Speaker #4: Loss attributable to shareholders narrowed to $0.72 million, a significant 91% improvement versus last year. So if we take a step back, these fins reflect a consistent theme of better demand, better quality of execution, improving engagement on both sides of the platform, and structurally improving our unit economics.
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Speaker #4: All of this is translating into a stronger P&L, with clear momentum heading into the next quarter. Thank you for your time today.
Speaker #3: Thank you, Dipanka and Sachin. And thanks to everyone for joining. This concludes Zoomcar's Q3, FY25-26 earnings presentation. Thank you.
Deepankar Tiwari: ... Which gives us the conviction that the model can scale up and scales profitably. So the macro is ready, the digital infrastructure is very mature, and Zoomcar's model is very validated. Now I will hand over to our Chief Financial Officer, Sachin Gupta, to take you through our financial overview. Sachin?
Deepankar Tiwari: ... Which gives us the conviction that the model can scale up and scales profitably. So the macro is ready, the digital infrastructure is very mature, and Zoomcar's model is very validated. Now I will hand over to our Chief Financial Officer, Sachin Gupta, to take you through our financial overview. Sachin?
Sachin Gupta: Thank you, Deepankar. Good morning, everyone, and thank you for taking time out and attending our earnings call today. We will walk you through the quarter's key operating and financial measures, followed by some key non-GAAP measures and their reconciliations later. Starting with the operating measures. While our booking numbers declined marginally year-over-year, our gross booking value, which is also our gross revenue, increased by about 1% to end at $6.6 million during the quarter ended 31 December 2025. Average guest trip rating improved to an all-time high of 4.799 out of a scale of 5. Our net GAAP revenue for the current quarter ended 31 December 2025 was $2.37 million, as compared to $2.45 million during the previous comparable quarter.
Sachin Gupta: Thank you, Deepankar. Good morning, everyone, and thank you for taking time out and attending our earnings call today. We will walk you through the quarter's key operating and financial measures, followed by some key non-GAAP measures and their reconciliations later. Starting with the operating measures. While our booking numbers declined marginally year-over-year, our gross booking value, which is also our gross revenue, increased by about 1% to end at $6.6 million during the quarter ended 31 December 2025. Average guest trip rating improved to an all-time high of 4.799 out of a scale of 5. Our net GAAP revenue for the current quarter ended 31 December 2025 was $2.37 million, as compared to $2.45 million during the previous comparable quarter.
Sachin Gupta: However, just to give you a perspective, if we ignore the currency fluctuations, our net GAAP revenue actually rose marginally year-over-year. Contribution profits increased to $1.38 million during the current quarter ended 31 December 2025, versus $1.28 million during the quarter ended 31 December 2024, representing a 7% year-over-year growth. Contribution profit per booking improved to an all-time high of $14.10, which is a significant fourteen percent increase year-over-year on every booking served by the platform. Loss from operations improved materially by 54% year-over-year to end at $1.47 billion, compared to $3.24 million a year earlier.
Sachin Gupta: However, just to give you a perspective, if we ignore the currency fluctuations, our net GAAP revenue actually rose marginally year-over-year. Contribution profits increased to $1.38 million during the current quarter ended 31 December 2025, versus $1.28 million during the quarter ended 31 December 2024, representing a 7% year-over-year growth. Contribution profit per booking improved to an all-time high of $14.10, which is a significant fourteen percent increase year-over-year on every booking served by the platform. Loss from operations improved materially by 54% year-over-year to end at $1.47 billion, compared to $3.24 million a year earlier.
Sachin Gupta: Adjusted EBITDA loss improved to $0.83 million, down from $3.15 million, reflecting a significant 74% improvement in profitability. Our loss attributable to shareholders reduced significantly by 91% to end at $0.72 million, down from $7.92 million a year ago. We believe these improvements across operating performance, unit economics, and profitability reflect disciplined execution, rigorous capital allocation, and a continued focus on maximizing the returns of every cent invested across the organization. The chart highlights what we consider is a core proof point. Nine consecutive quarters of Contribution Profit, reaching $1.38 million in December 2025. This consistency enables us to plan growth from a more durable and sustainable economic base.
Sachin Gupta: Adjusted EBITDA loss improved to $0.83 million, down from $3.15 million, reflecting a significant 74% improvement in profitability. Our loss attributable to shareholders reduced significantly by 91% to end at $0.72 million, down from $7.92 million a year ago. We believe these improvements across operating performance, unit economics, and profitability reflect disciplined execution, rigorous capital allocation, and a continued focus on maximizing the returns of every cent invested across the organization. The chart highlights what we consider is a core proof point. Nine consecutive quarters of Contribution Profit, reaching $1.38 million in December 2025. This consistency enables us to plan growth from a more durable and sustainable economic base.
Sachin Gupta: The next slide provides a table or chart for the Adjusted EBITDA, which also continued to improve meaningfully. For the quarter, for the quarter Q3 of fiscal year 2025, 2026, our Adjusted EBITDA was $0.83 million, compared to $3.15 million in the year prior period, reflecting a substantial operating leverage. Let's spend the next couple of minutes to, to give you a brief update on our fundraising efforts. We are currently in the process of raising additional capital to support our growth initiatives. We have launched a private placement round or a bridge financing, targeting a minimum of $2 million up to a maximum of $10 million fundraise, including an over-allotment option.
Sachin Gupta: The next slide provides a table or chart for the Adjusted EBITDA, which also continued to improve meaningfully. For the quarter, for the quarter Q3 of fiscal year 2025, 2026, our Adjusted EBITDA was $0.83 million, compared to $3.15 million in the year prior period, reflecting a substantial operating leverage. Let's spend the next couple of minutes to, to give you a brief update on our fundraising efforts. We are currently in the process of raising additional capital to support our growth initiatives. We have launched a private placement round or a bridge financing, targeting a minimum of $2 million up to a maximum of $10 million fundraise, including an over-allotment option.
Sachin Gupta: We have also launched a tender offer to exchange our existing investor warrants for shares of common stock as part of our effort to simplify and strengthen our capital structure. In parallel, we've engaged a banker and are evaluating a potential uplist to a US national stock exchange. We continue to restructure our existing debt obligations to further strengthen the balance sheet and improve long-term financial sustainability. This, we believe, all of these efforts will help us generate long-term, sustainable value for all our stakeholders. We'll now briefly cover the reconciliation of the GAAP or non-GAAP measures from the closest GAAP measures that are reported. On to the contribution profit reconciliation slide.
Sachin Gupta: We have also launched a tender offer to exchange our existing investor warrants for shares of common stock as part of our effort to simplify and strengthen our capital structure. In parallel, we've engaged a banker and are evaluating a potential uplist to a US national stock exchange. We continue to restructure our existing debt obligations to further strengthen the balance sheet and improve long-term financial sustainability. This, we believe, all of these efforts will help us generate long-term, sustainable value for all our stakeholders. We'll now briefly cover the reconciliation of the GAAP or non-GAAP measures from the closest GAAP measures that are reported. On to the contribution profit reconciliation slide.
Sachin Gupta: These are non-GAAP measures, which are arrived at by adding to the gross margin all of our non-cash expenses, overhead, and cloud costs, which are part of cost of revenue, and reducing from that the performance marketing spends and host incentives, if any, spend which are akin to generating revenue. The next slide provides a reconciliation of another non-GAAP measure, which is Adjusted EBITDA, which provides a clear picture of our overall profitability of the business after eliminating all one-time and non-cash expenses and income line items reported in the profit and loss during the relevant period.
Sachin Gupta: These are non-GAAP measures, which are arrived at by adding to the gross margin all of our non-cash expenses, overhead, and cloud costs, which are part of cost of revenue, and reducing from that the performance marketing spends and host incentives, if any, spend which are akin to generating revenue. The next slide provides a reconciliation of another non-GAAP measure, which is Adjusted EBITDA, which provides a clear picture of our overall profitability of the business after eliminating all one-time and non-cash expenses and income line items reported in the profit and loss during the relevant period.
Sachin Gupta: Both of these non-GAAP measures should be read along with, and not as a replacement to, the GAAP measures published in the press release made earlier in the day today, presented in the slides during the earnings call, and would also be reported in the 10-Q that will be filed later in the day today. Over to our CEO, Deepankar, to summarize the turnaround story.
Sachin Gupta: Both of these non-GAAP measures should be read along with, and not as a replacement to, the GAAP measures published in the press release made earlier in the day today, presented in the slides during the earnings call, and would also be reported in the 10-Q that will be filed later in the day today. Over to our CEO, Deepankar, to summarize the turnaround story.
Deepankar Tiwari: Thank you, Sachin. Let me briefly summarize the five big wins from the quarter that together show the turnaround is both real and durable. First, the Gross Booking Value was $6.60 million, up year-over-year, and importantly, this came through organic growth without any paid marketing. That's a strong signal of brand-led demand. Second, the repeat behavior continued to strengthen. Repeat users contributing to 58% of our bookings. That kind of stickiness is exactly what we want in a marketplace business. Third, the unit economics improved further. Contribution per booking increased to $14.10 from $12.39, $12.39, translating to $1.38 million of Contribution Profit for the quarter. This is the core operating engine of our model getting stronger. Fourth, we generated meaningful operating leverage.
Deepankar Tiwari: Thank you, Sachin. Let me briefly summarize the five big wins from the quarter that together show the turnaround is both real and durable. First, the Gross Booking Value was $6.60 million, up year-over-year, and importantly, this came through organic growth without any paid marketing. That's a strong signal of brand-led demand. Second, the repeat behavior continued to strengthen. Repeat users contributing to 58% of our bookings. That kind of stickiness is exactly what we want in a marketplace business. Third, the unit economics improved further. Contribution per booking increased to $14.10 from $12.39, $12.39, translating to $1.38 million of Contribution Profit for the quarter. This is the core operating engine of our model getting stronger. Fourth, we generated meaningful operating leverage.
Deepankar Tiwari: Our Adjusted EBITDA improved to $0.83 million, a 74% improvement year-over-year. Last but not the least, the fifth, the bottom line improved meaningfully. Loss attributable to shareholders narrowed to $0.72 million, a significant 91% improvement versus last year. If we take a step back, these wins reflect a consistent theme of better demand, better quality of execution, improving engagement on both sides of the platform, and structurally improving our unit economics. All of this is translating into a stronger PNL with a clear momentum heading into the next quarter. Thank you for your time today.
Deepankar Tiwari: Our Adjusted EBITDA improved to $0.83 million, a 74% improvement year-over-year. Last but not the least, the fifth, the bottom line improved meaningfully. Loss attributable to shareholders narrowed to $0.72 million, a significant 91% improvement versus last year. If we take a step back, these wins reflect a consistent theme of better demand, better quality of execution, improving engagement on both sides of the platform, and structurally improving our unit economics. All of this is translating into a stronger PNL with a clear momentum heading into the next quarter. Thank you for your time today.
Anirudh Lamba: Thank you, Deepankar and Sachin, and thanks to everyone for joining. This concludes Zoomcar's Q3 FY 2025-2026 earnings presentation. Thank you.
Anirudh Lamba: Thank you, Deepankar and Sachin, and thanks to everyone for joining. This concludes Zoomcar's Q3 FY 2025-2026 earnings presentation. Thank you.
[Company Representative] (Zoomcar Holdings): Goodbye.
[Company Representative] (Zoomcar Holdings): Goodbye.