Zoomcar’s Q2 Loss Declines 76% YoY To $794K On One-Time Gain

Nasdaq-listed rental car platform Zoomcar managed to cut its net loss for the three months ended September 2025 by 76% to $794K from $3.35 Mn in the year-ago period. On a sequential basis, the company’s net loss declined 81% from $4.2 Mn. 

The Bengaluru-based company’s top line recorded a marginal YoY uptick during the quarter under review. Revenue from services for the September quarter stood at $2.28 Mn, up 2% from $2.23 Mn in the year-ago quarter. It had posted a revenue of $2.3 Mn in the preceding June quarter. 

Including other revenue of almost $6K, the company’s total revenue for the quarter stood at $2.29 Mn. Meanwhile, total costs and expenses for the quarter increased 12% YoY to $4.27 Mn.

The improvement in the bottom line during the quarter under review came on the back of a one-time gain of $1.7 Mn due to derecognition of two of Zoomcar’s subsidiaries, Zoomcar Vietnam Mobility LLC and Zoomcar Egypt Car Rental LLC.

Bankruptcy proceedings for Zoomcar Vietnam Mobility LLC began on June 4, 2025, over two years after the company filed for bankruptcy. Meanwhile, Zoomcar Egypt Car Rental LLC’s name was deleted from the commercial registrar in August after the company initiated the liquidation process.

While the derecognition of the Vietnamese variable interest entity (VIE) contributed $401K, the Egyptian VIE derecognition led to a gain of $1.5 Mn. 

Despite cutting down its loss, Zoomcar’s ability to sustain continues to be questionable. In its SEC disclosure, Zoomcar said that it will not have sufficient funds to meet its obligations within one year.

To ensure sustenance, Zoomcar’s management is seeking funding through additional debt or equity financing, implementing business initiatives to improve customer experience and incremental expense reduction measures. 

The company is looking to raise up to $5 Mn via bridge financing and another $20 Mn by way of “uplist raise” before the end of fiscal year FY26. It is pertinent to mention that the company tried to raise $15 Mn earlier this year, filing a registration statement with the SEC on May 5, but failed to raise any capital back then. 

Despite the worrying condition of its balance sheet, Zoomcar claimed that the September quarter marked the “eighth consecutive quarter of positive contribution profit and sustained progress toward full profitability”.

The company’s adjusted EBITDA improved 14% YoY, driven by tighter cost control and operating leverage. The company said that it continues to benefit from India’s growing mobility shift, projecting the self-drive car-sharing market to expand to 65 Mn guests by 2031 from 18.5 Mn in 2025. It said that since transitioning to a full peer-to-peer model, Zoomcar has built a community of over 10 Mn guests and 42,000 cars across 99 Indian cities.

“Our performance this quarter highlights the resilience of our asset-light marketplace and the discipline driving profitable growth. We continue building a trusted community of hosts and guests as India accelerates its shift from car ownership to access,” Zoomcar’s recently appointed CEO Deepankar Tiwari said.