Zoomcar Holdings (ZCAR) AI Stock Analysis

• Market Cap: $494.24K
• Dividend Yield: N/A
• Average Volume (3M): 15.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.98
• Revenue Growth: 1.41%
• EPS Growth: -100.89%
• Country: US
• Employees: 191
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): -0.07
• Shares Outstanding: 6,902,727
• 10 Day Avg. Volume: 12,544
• 30 Day Avg. Volume: 15,485
• PEG Ratio: <0.01
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -0.27
• Enterprise Value/Market Cap: 11.47K
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 9.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: $0.07 ▼(-12.50% Downside)

Zoomcar Holdings receives a low overall stock score due to significant financial instability, bearish technical indicators, and poor valuation metrics. The company's high leverage, negative equity, and lack of profitability are major concerns. Technical analysis further indicates a strong downward trend, and the absence of earnings and dividends suggests overvaluation.

Positive Factors

High gross profit margin

A TTM gross margin of ~50% signals strong unit economics on rental transactions and add-ons. Durable margins give the company structural capacity to absorb marketing and platform costs, enabling operating leverage as scale grows and improving the path to sustained profitability if SG&A is controlled.

Recovering revenue trend

Positive TTM revenue growth indicates improving market demand and platform traction. Sustained top-line growth supports network effects for a marketplace model, enabling higher take-rates and ancillary monetization over months as utilization and partner density increase.

Asset-light marketplace model

An asset-light self-drive marketplace connects owners, fleet partners and renters via software, offering scalable revenue streams (commissions, fees, ancillaries). This structural model supports margin expansion, rapid geographic rollout and lower fixed capital needs compared with owning fleets.

Negative Factors

Negative equity and high leverage

Negative equity and extreme leverage reflect structural solvency stress that constrains strategic options. This persistent capital weakness raises refinancing risk, reduces lender and partner confidence, and limits the company’s ability to invest in growth until a meaningful recapitalization occurs.

Poor operating cash conversion

Very low operating cash conversion signals that reported earnings are not translating into reliable cash to fund operations. Over months this forces dependence on external funding, increases liquidity risk, and undermines the company’s ability to self-fund investments or weather revenue variability.

Frequent dilutive financings

Recent warrant exchange, convertible preferred units and bridge financing show ongoing reliance on dilutive and complex capital raises. Structurally, repeated dilution and convertible claims can erode shareholder value, complicate governance and leave capital structure unstable absent sustained cash generation.

Zoomcar Holdings Business Overview & Revenue Model

Company Description

Zoomcar Holdings (ZCAR) is a leading car rental and mobility solutions provider based in India, specializing in self-drive car rentals, fleet management, and subscription-based vehicle services. The company operates in the growing shared mobility sector, catering to urban consumers seeking flexible transportation options. With a diverse fleet of vehicles ranging from economy cars to luxury models, Zoomcar enables users to book vehicles for short and long durations through its user-friendly mobile app and website.

How the Company Makes Money

Zoomcar primarily generates revenue through its car rental services, where customers pay for the duration of their vehicle usage. Key revenue streams include hourly, daily, and monthly rental fees. The company also offers subscription services, allowing customers to access vehicles on a long-term basis for a fixed monthly fee, which provides a steady income stream. Additionally, Zoomcar earns revenue from partnerships with various businesses for corporate rentals and collaborations with automotive manufacturers for fleet acquisitions. The company's innovative pricing strategies and promotions further enhance customer acquisition and retention, contributing to its overall earnings.

Zoomcar Holdings Financial Statement Overview

Summary

Zoomcar Holdings faces significant financial challenges with high leverage, negative equity, and inconsistent cash flows. Despite some positive signs in revenue growth and gross profit margins, the overall financial instability and volatility in performance suggest a need for strategic financial restructuring.

Income Statement

Zoomcar Holdings shows a mixed performance in its income statement. The TTM data indicates a strong gross profit margin of 50.43%, but the net profit margin is exceptionally high at 371.84%, which may be due to extraordinary items or accounting adjustments. Revenue growth is positive at 8.11% TTM, indicating some recovery. However, historical data shows inconsistent revenue growth and negative margins, highlighting volatility and potential sustainability issues.

Balance Sheet

The balance sheet reveals significant financial instability. The company has a negative stockholders' equity, resulting in an extremely high and negative debt-to-equity ratio. Return on equity is also negative, indicating losses relative to equity. The equity ratio is negative, suggesting the company is heavily leveraged and may face solvency issues.

Cash Flow

Cash flow analysis shows slight improvement in free cash flow growth at 11.8% TTM, but the operating cash flow to net income ratio is very low at 0.28%, indicating poor cash conversion. The free cash flow to net income ratio is close to 1, suggesting that most of the net income is being converted into free cash flow, but the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.51B	9.11M	9.90M	8.83M	12.80M	10.23M
Gross Profit	1.26B	3.81M	-434.36K	-11.85M	-12.49M	-9.60M
EBITDA	570.74M	-20.49M	-32.13M	-59.61M	-24.96M	-10.89M
Net Income	9.32B	-25.62M	-34.28M	-62.03M	-31.05M	-27.67M
Balance Sheet
Total Assets	3.12B	5.36M	9.17M	16.46M	42.17M	51.50M
Cash, Cash Equivalents and Short-Term Investments	169.36M	1.08M	1.79M	3.85M	26.78M	29.06M
Total Debt	5.84B	13.94M	24.26M	41.98M	21.42M	52.03M
Total Liabilities	30.83B	30.71M	42.86M	237.38M	205.73M	193.62M
Stockholders Equity	-27.72M	-25.35M	-33.69M	-246.03M	-188.67M	-167.24M
Cash Flow
Free Cash Flow	81.82M	-9.09M	-22.34M	-36.36M	-34.30M	-12.93M
Operating Cash Flow	82.54M	-9.08M	-22.20M	-36.27M	-31.66M	-12.87M
Investing Cash Flow	-952.98K	492.14K	814.00	3.90M	2.59M	6.44M
Financing Cash Flow	-818.29M	8.27M	20.20M	9.59M	26.83M	34.62M

Zoomcar Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZCAR, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.13, and below the 200-day MA of 1.01, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 35.91 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZCAR.

Zoomcar Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
R	73 Outperform	$7.70B	16.17	16.26%	1.75%	1.68%	9.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WSC	62 Neutral	$3.68B	16.73	21.15%	1.44%	-3.64%	867.62%
UHAL	54 Neutral	$10.04B	56.86	2.58%	―	4.32%	-55.65%
HTZ	50 Neutral	$1.62B	-1.47	-567.03%	―	-7.36%	62.27%
CAR	45 Neutral	$4.05B	-1.94	―	―	-1.22%	-639.34%
ZCAR	37 Underperform	$494.24K	―	―	―	1.41%	-100.89%

Zoomcar Holdings Corporate Events

Zoomcar Launches Warrant Exchange Offer and Bridge Financing

On January 23, 2026, Zoomcar Holdings, Inc. launched an offer to exchange several classes of its outstanding common stock purchase warrants and pre-funded warrants for shares of its common stock at set exchange ratios, including 20,000 common shares for each common warrant and 10 common shares for most other warrant types, in a move aimed at simplifying its capital structure and potentially reducing future warrant overhang. The exchange offer, which relies on an exemption from registration under the Securities Act, is contingent on shareholder approval to increase the company’s authorized common shares and related charter amendments, and is accompanied by a solicitation of consents to amend existing warrant terms and post-offer treatment, underscoring a broader effort to realign its equity and governance framework. Also on January 23, 2026, Zoomcar initiated a private bridge financing of up to $5 million, with a $2 million minimum by February 28, 2026, selling units comprising Series A convertible preferred stock and common stock warrants at $1,000 per unit, a financing step that provides near-term liquidity support and adds a new layer of senior, convertible capital while further expanding potential common equity through low conversion and exercise prices.

The most recent analyst rating on (ZCAR) stock is a Hold with a $0.07 price target. To see the full list of analyst forecasts on Zoomcar Holdings stock, see the ZCAR Stock Forecast page.

Zoomcar Holdings Finalizes Securities Purchase Agreement

On December 10, 2025, Zoomcar Holdings, Inc. finalized a Securities Purchase Agreement with FirstFire Global Opportunities Fund, LLC, involving a private placement offering of a convertible promissory note valued at $220,000 and pre-funded warrants for 1,000,000 shares of common stock. This financial arrangement, which includes a 12% annual interest rate and a 12-month maturity, allows Zoomcar to prepay the note at a discount and provides FirstFire with conversion rights in case of default, potentially impacting the company’s financial obligations and shareholder equity.

The most recent analyst rating on (ZCAR) stock is a Sell with a $0.18 price target. To see the full list of analyst forecasts on Zoomcar Holdings stock, see the ZCAR Stock Forecast page.

Zoomcar Holdings Transitions to OTCQB Tier

Zoomcar Holdings, Inc. announced that it has transitioned its trading from the OTCQX U.S. tier to the OTCQB tier of OTC Markets Group, effective November 4, 2025. This decision follows a notice from OTC Markets indicating non-compliance with certain eligibility requirements for the OTCQX tier. Despite the transition, the company maintains its reporting obligations under the Securities Exchange Act of 1934, and the public trading of its securities in the United States remains unaffected.

The most recent analyst rating on (ZCAR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Zoomcar Holdings stock, see the ZCAR Stock Forecast page.