Zoomcar, the rental car platform formerly listed on Nasdaq, reported a 28% year-on-year increase in net loss to $5.4 million for the quarter ended June 30, 2026, while net revenue remained flat at $2.4 million, according to inc42.com. The company’s gross booking value declined 10% year-on-year to $5.8 million during the same period.
The company attributed the decline in booking volume to a strategic pivot towards longer, higher-value trips instead of focusing on volume. This shift led to a 7% increase in value per booking to $66. Zoomcar also reduced its adjusted EBITDA loss by approximately 65% to $611,000, driven by a 38% fall in cost of revenue to $810,000, mainly due to reduced losses from accidental damage and theft following changes in insurance coverage and loss-prevention measures.
Despite improvements in operational efficiency, Zoomcar’s bottom line was affected by higher non-operating expenses. Finance costs rose to $1.4 million, and other net expenses increased to $3.1 million from $2 million in the previous year quarter. The company’s gross profit margin improved to 65%, reflecting its focus on profitability over volume.
Zoomcar’s financial results for Q1 2026 highlight the challenges of balancing growth and profitability in the rental car sector. The next earnings update will provide further insight into whether the company’s strategy of targeting extended trips will sustain revenue growth while managing costs effectively.