Zoomcar Holdings Inc

Good morning, everyone. Welcome to Zoomcast Fiscal Q3 2025-2026 Earnings Call. I'm Anirudh Lamba, Head of Investor Relations. With me today are our CEO, Deepankar Tiwari, and our CFO, Sachin Gupta. Before we begin, please note our forward-looking statements, disclaimers, and our use of non-GAAP measures. including contribution profit and adjusted EBITDA. Actual results may differ materially and more details are available in our SEC filings. Over to CEO Dipankar for the business overview.

Thank you Anirudh and thank you everyone for joining us today. Zoomcar is India's largest peer-to-peer car sharing marketplace with a pan-India footprint in over 100 cities. and a trusted base of more than 10 million guests and over 42,000 plus cars on board until date. We are driving innovation with a focused team, strong brand awareness, and a platform experience that's earned high guest ratings and meaningful repeat usage. This is a scalable marketplace with durable demand characteristics without relying on any performance marketing. Let me start with what matters the most. Profitability is accelerating and we are doing it without relying on performance marketing for more than 21 months. In quarter three, we delivered $1.38 million of contribution profit at a 58% margin, which is our highest quarterly contribution profit to date. And this marks our ninth consecutive quarter of positive contribution profit. Just as importantly, our booking level economics have strengthened further to $14.10 contribution profit per booking, up from $12.39 a year ago. This tells us that the business model is getting structurally and fundamentally better. That progress is flowing through the P&L. Our adjusted EBITDA loss improved by 74% year-over-year to $0.083 million. And the net loss attributable to shareholders narrowed by a significant 91% to $0.72 million. We are scaling with discipline. And we are seeing a healthy demand quality alongside that discipline. Our gross booking value was over $6.60 million. Repeat users contributed 58% of bookings, and our guest experience hit an all-time high rating of 4.79 on a scale of 5. So we are improving unit economics, reducing losses, and strengthening customer experience, all at the same time. That's the core of Toomka's turnaround story. Sustainable profitability driven by better product, stronger marketplace quality, and operational execution. We believe India is at once in a decade moment to consolidate peer-to-peer mobility. Demand is expanding. The self-drive car sharing addressable market is projected to grow from 18.5 million users in 2025 to 65 million users in 2031, translating to an estimated $28.6 billion of opportunity. Consumers are shifting from high commitment ownership to access, while structurally, low car penetration creates a long-term hit room for growth. Most importantly, unit economics have inflected. Our booking level contribution margins improved from a negative in December 23 to a positive USD $14.10 in December 25. 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 Zoomcard'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.

Thank you, Dipankar. 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 December 31st, 2025. Average guest trip rating improved to an all-time high of 4.799 out of a scale of five. Our net gap revenue for the current quarter ended December 31st, 2025 was 2.37 million as compared to $2.45 million during the previous comparable quarter. However, just to give you a perspective, if we ignore the currency fluctuations, our net gap revenue actually rose marginally year over year. Contribution profits increased to $1.38 million during the current quarter ended December 31st, 2025 versus $1.28 million during the quarter ended December 31st, 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 14% 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 annually. compared to $3.24 million a year earlier. And adjusted ethical 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 up down from $7.92 million a year ago. We believe these improvements across operating performance, unit economics, and profitability reflects disciplined execution, rigorous capital allocations, and a continued focus on maximizing 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. The next slide provides a table or chart for the adjusted EBITDA, which also continued to improve meaningfully. For the quarter three of fiscal year 2025-26, 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 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. 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 the banker and are evaluating a potential uplift to a US national stock exchange. And 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 gap or non-gap measures from the closest gap measures that are reported. Onto the contribution profit reconciliation slide, these are non-gap measures which are arrived at by adding to the gross margin, all of our non-cap expenses, overhead and cloud costs, which are part of cost of revenue and reducing from that the performance marketing strengths and post 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. 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 10Q that will be filed later in the day today. Over to our CEO Dipankar to summarize the turnaround story.

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 cross-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 translating to $1.38 million of contribution profits for the quarter. This is the core operating engine of our model getting stronger. Fourth, we generated meaningful operating leverage. Our adjusted EBITDA improved to $0.83 million, a 74% improvement year over year. And 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. 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. All of this is translating into a stronger P&L with a clear momentum heading into the next quarter. Thank you for your time today.

Thank you, Dipankar and Sachin, and thanks to everyone for joining. This concludes ZoomCars Q3 F5-2526 earnings presentation. Thank you.