Zoomcar Holdings Inc

Good evening from Bengaluru, India, and welcome to Zoomcast Q2 FY2526 earnings call. I am Anirudh Lamba, Head of Investor Relations. Joining me today are our CEO Dipankar Tiwari and CFO Sachin Gupta. We'll walk you through the highlights of the quarter, key financial results, and business performance. Before we begin, please note that today's presentation may include forward-looking statements which are subject to risks and uncertainties. Actual results may differ materially. We also reference certain non-GAAP financial measures, including contribution profit and adjusted EBITDA, which should be viewed as supplemental to GAAP metrics. Full details and reconciliations are available in our SEC filings. With that, let's move to the business overview. Over to you, Dipankar.

Thank you, Anirudh. A very good morning to all the participants joining this call. Thank you for taking the time out. Ladies and gentlemen, Zoomcar continues to lead India's peer-to-peer car sharing category with more than 10 million registered guests, over 42,000 unique hosted cars, and a presence across 99 cities in India, since we transitioned to a complete peer-to-peer car sharing marketplace. Our brand awareness stands at 90% at U Govern's 2025 report. This leadership comes from our asset-light model, where guests book and drive host vehicles independently. We are enabling millions to access cars without owning them, redefining mobility for urban India. For the quarter ended September 30th, 2025, we recorded a contribution profit of 1.20 million US dollars, making the eighth consecutive positive quarter. Per booking contribution profit improved by 5% year on year to USD 12.07. Adjusted EBITDA improved by 14% year over year, and a net loss narrowed to US 0.08 million, 0.8 million, down from USD 3.4 million a year ago, a significant 76% improvement. High quality hosts increased by 46% year over year, and repeat users remained consistent at 57%, signaling high platform stickiness. These gains come with disciplined spending and no large marketing outlay. or host incentivization or discounting to guests, a proof of strong organic traction and community trust. India's mobility market is at an inflection point. The total addressable market for self-drive car sharing is expanding from current 18.5 million guests in 2025 and is likely to reach 65 million by 2031. Car ownership in India remains low at 0.1 cars per household as compared to 2.1 in the U.S. Even as disposable incomes rise, urban consumers increasingly prefer flexibility and experience-led spending over the long-term commitment of asset ownership. With over 1 billion internet users, digital maturity is very high, and our contribution margin turnaround from minus $2.5 to $12 plus $12 per booking proves that model scales profitably. With macro tailwinds proven profitability and digital readiness, this is the perfect moment to accelerate. The opportunity is structural and long-term. We are positioned to consolidate our market leadership as the preferred peer-to-peer car sharing platform for Indian consumers seeking flexibility over ownership. I'll hand over to our Chief Financial Officer, Sachin Gupta, to take you through the financial overview. Sachin.

Thank you, Dipankar. Good morning, everyone, and thanks for taking time out to hear the earning results for Zumkar for quarter-ended September 30th, 2025. With no investments in performance marketing, host incentivization, or guest discounting, while our booking numbers declined marginally by 6%, our gross booking value improved to $6.23 million, mainly due to a 22% increase in our average duration of the booking on the back of More than 57% repeat users booking with us consistently, reflecting their trust on the platform in delivering a seamless experience. Our average guest trip rating also showed an improved number of 4.76 out of 5, a testimony that the platform has delivered seamlessly and consistently year over year. Over to the financial measures, our revenue for the quarter stood at USD $2.3 million, which is 2% improvement year-over-year. And we continue to improve our profitability. As a result, our contribution margins remain strong at 52% of the reported gap revenue, and our adjusted EBITDA improved 14% year-over-year. Just to give you a perspective, if we compare the adjusted EBITDA numbers on a year-to-date basis, that is for a six-month period ended September 30, 2025, this improvement is a significant 36%. While our loss from operations are showing a decline of 26%, however, excluding one-time non-cash RSU expenses of $685,000, loss from operations improved by nearly 18% year-over-year, reflecting continued expense discipline. The quarter also marked a record improvement in our overall profitability, with loss attributable to our shareholders reduced by a significant 76% to close at $0.79 million for the quarter ended September 30, 2025. Eight straight quarters of contribution profit underscores how durable our model is. The consistency reflects operational efficiency, healthy pricing, and host reliability. As we scale further, maintaining contribution profitability remains a key discipline before we accelerate top-line growth. Our adjusted EBITDA trajectory continues to improve even as we continue to launch and scale our offerings to more cities continuously, driven by stronger margins and tighter cost control. The positive slope demonstrates that even as we look to expand our coverage, our cost base is stabilizing and our efficiency ratios are improving. We are well on track towards operating break-even. Now, on the fundraise side, an appropriate funding is a next step to launch this growth engine that can bring about a 10x growth in the next five years. And we are currently working to raise additional capital to fund this growth. And plan is to get uplisted by the end of fiscal year ended March 31st, 2026. We further continue to restructure our debts. Our fundraising being work in progress, coupled with a strong financial discipline and a continuous restructuring of debt by the management in the current year, the company has managed to keep the total liabilities stable at the same levels as of March 25 reported numbers. These initiatives have strengthened our balance sheet, improved liquidity and enhanced operational efficiency and sustainability quarter over quarter. Additionally, it puts us in a situation where the company is poised to maximize the stakeholders' value as and when the growth funds are made available for investment. Here we present reconciliations for the contribution profits and adjusted EBITDA in the next couple of slides for three and six months ended September 30th, 2025, as compared to three and six months ended September 30th, 2024. Now, these adjustments exclude non-cash items like stock fees, compensation, and one-time restructuring costs. While we believe that these non-GAAP measures provide a realistic view of the performance of the company, we would request you to review them along with the other GAAP measures presented in the earning call published earlier in the press release and also included in the 10Q to be filed later in the day-to-day. However, both these non-GAAP measures provide a clear view of operational performance, margins consistently above 50%, and losses narrowing every quarter. Our contribution margins stood at 52% for quarter two of fiscal year ended, fiscal year 2025-26, and 51% for the year-to-date six months ended September 30, 2025, compared to a contribution profit of 37% for a comparable period last year. Improvement was driven by a better cost control, optimized operations across the board. Our goal is to maintain contribution margins above 50% while scaling bookings through organic demand. Adjusted EBITDA loss narrowed 14% year over year, reflecting efficiency in overheads and financing. Depreciation and interest costs have declined due to asset-light approach and debt restructuring. This positive momentum keeps us on the path towards operating profitability in the next fiscal period. Over to our CEO Dipankar for the closing remarks on this quarterly results.

Thank you, Sachin. Ladies and gentlemen, to sum up, we achieved eight quarters of contribution profit, a 2% organic gross booking value growth without any spends on marketing or incentives, consistent stickiness of our repeat users, and a significant number of high-quality hosts coming onto the platform, thereby significantly increasing the guest experience. Our adjusted EBITDA improved by 14% and net loss narrowed by a significant 76%. These are the results of disciplined execution and a validated business model. Our focus remains on sustainable and responsible growth and scaling up, financial stability, and a long-term shareholder value. Thank you.

Thank you, Dipankar and Sachin. And thanks to everyone for joining. This concludes Zoomcast Q2 FY25-26 earnings presentation. Thank you.