Zoomcar Holdings (ZCAR) AI Stock Analysis

• Market Cap: $525.62K
• Dividend Yield: N/A
• Average Volume (3M): 15.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.77
• Revenue Growth: 1.41%
• EPS Growth: -100.89%
• Country: US
• Employees: 191
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): -0.06
• Shares Outstanding: 7,151,343
• 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: 9.45K
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: 8.60
• 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: 41 Neutral
• Price Target: $0.06 ▼(-26.25% Downside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is held down primarily by very weak financial strength (deeply negative equity, sizable leverage vs assets, and negative/weak cash flow), which outweighs the TTM revenue rebound and improved gross/EBIT margins. Technicals add pressure due to a pronounced downtrend and negative MACD, while valuation inputs are not usable (P/E shown as 0 and no dividend yield), limiting support from that component.

Positive Factors

Revenue rebound and improving unit economics

A near-doubling of TTM revenue alongside ~52% gross and ~11.9% EBIT margins indicates the core rental marketplace is scaling with improving unit economics. If sustained, this supports margin durability and reduces the need for heavy promotional subsidies over the next several quarters.

Platform marketplace business model

Zoomcar’s platform-based marketplace captures take-rates, host/listing fees and ancillary revenue, offering diversified and recurring revenue streams. Network effects between vehicle owners, fleet partners and renters can deepen market position and support steady revenue per booking over the medium term.

Capital-structure simplification and bridge financing

The warrant exchange and related bridge financing are structural moves to reduce instrument overhang, simplify the cap table and provide near-term liquidity. If executed, this lowers administrative complexity and potential future dilution risk, improving governance and strategic optionality for months ahead.

Negative Factors

Deeply negative equity and high leverage

Deep negative equity and meaningful debt versus a small asset base signal accumulated losses and a fragile balance sheet. This constrains financing flexibility, increases refinancing/default risk, and limits ability to invest organically or absorb shocks across the next several quarters.

Weak operating cash flow and poor cash conversion

Slightly negative operating and free cash flow with steep FCF decline implies the business is not reliably converting accounting profits into cash. That forces reliance on external financing for working capital or capex and risks undermining sustainable margin improvements without further dilutive raises.

Negative EBITDA and questionable earnings quality

Persistently negative EBITDA shows core operations aren’t yet cash-profitable, while an anomalous net margin raises concerns about one‑time effects or accounting items. This combination weakens confidence that reported profits reflect sustainable operating performance over the medium term.

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

Income statement shows a sharp TTM revenue rebound (+94.2%) with positive gross (~52%) and EBIT (~11.9%) margins, but sustainability is questionable due to negative EBITDA (~-18.4%), outlier net margin (~176.8%) versus prior losses, a severely impaired balance sheet (deeply negative equity; debt sizable vs assets), and slightly negative TTM operating/free cash flow indicating weak cash conversion.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp revenue rebound (+94.2%) and a positive gross margin (~52%) with positive EBIT margin (~11.9%), signaling improved unit economics versus prior annual periods that had deeply negative margins. However, EBITDA remains negative (about -18.4% margin), and the extremely high net profit margin (~176.8%) appears non-recurring/outlier relative to the company’s multi-year history of sizable net losses, which reduces confidence in earnings quality and sustainability.

Balance Sheet

The balance sheet is very weak: stockholders’ equity is deeply negative in TTM (about -27.4B) and was also negative across all annual periods, indicating accumulated losses and/or heavy liabilities relative to assets. Total debt is sizable (TTM ~5.17B) versus a small asset base (TTM ~2.77B), and negative equity makes leverage metrics hard to interpret but still points to elevated financial risk and limited balance-sheet flexibility.

Cash Flow

Cash generation remains a key issue. TTM operating cash flow and free cash flow are slightly negative, and free cash flow growth is sharply down (about -105.7%). While free cash flow to net income reads near 1.0 in TTM, operating cash flow is near zero/negative and does not support the reported net income, suggesting weak cash conversion and potential earnings quality concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.87B	9.11M	9.90M	8.83M	12.80M	10.23M
Gross Profit	2.55B	3.81M	-434.36K	-11.85M	-12.49M	-9.60M
EBITDA	577.28M	-20.49M	-32.13M	-59.61M	-24.96M	-10.89M
Net Income	9.33B	-25.62M	-34.28M	-62.03M	-31.05M	-27.67M
Balance Sheet
Total Assets	2.77B	5.36M	9.17M	16.46M	42.17M	51.50M
Cash, Cash Equivalents and Short-Term Investments	208.18M	1.08M	1.79M	3.85M	26.78M	29.06M
Total Debt	5.17B	13.94M	24.26M	41.98M	21.42M	52.03M
Total Liabilities	30.20B	30.71M	42.86M	237.38M	205.73M	193.62M
Stockholders Equity	-27.43B	-25.35M	-33.69M	-246.03M	-188.67M	-167.24M
Cash Flow
Free Cash Flow	-4.66M	-9.09M	-22.34M	-36.36M	-34.30M	-12.93M
Operating Cash Flow	-4.66M	-9.08M	-22.20M	-36.27M	-31.66M	-12.87M
Investing Cash Flow	-1.04M	492.14K	814.00	3.90M	2.59M	6.44M
Financing Cash Flow	-824.72M	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: Neutral

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, above the 50-day MA of 0.07, and below the 200-day MA of 0.35, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
R	61 Neutral	$7.61B	16.03	16.36%	1.75%	1.68%	9.91%
UHAL	59 Neutral	$8.41B	-53.96	1.22%	―	4.32%	-55.65%
WSC	51 Neutral	$3.20B	-64.81	-5.35%	1.44%	-3.64%	867.62%
HTZ	47 Neutral	$1.32B	-2.13	193.77%	―	-7.36%	62.27%
CAR	43 Neutral	$3.59B	-5.08	32.05%	―	-1.22%	-639.34%
ZCAR	41 Neutral	$525.62K	-0.25	-67.63%	―	1.41%	-100.89%

Zoomcar Holdings Corporate Events

Zoomcar Launches Voluntary Warrant-for-Stock Exchange Offer

On February 27, 2026, Zoomcar Holdings, Inc. launched a voluntary issuer exchange offer for common stock purchase warrants issued in a private placement completed on February 25, 2026 and outstanding as of February 26, 2026. Eligible warrant holders of record who are verified accredited investors may tender each warrant in exchange for 20,000 shares of Zoomcar common stock, with the offer set to expire at 5:00 p.m. Eastern Time on March 31, 2026 unless extended.

The exchange is intended to simplify Zoomcar’s capital structure by reducing outstanding warrant instruments and consolidating its equity base, potentially easing administrative and reporting complexity for the company. Any shares issued will be restricted securities subject to transfer legends, stop-transfer instructions, and lock-up agreements that curb resale for 12 to 18 months, while the offer’s completion depends on shareholder approval to increase authorized common shares and other specified conditions.

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 Completes Private Warrant Financing Round

On February 25, 2026, Zoomcar Holdings closed a previously announced private placement of 939 common stock purchase warrants to verified accredited investors, raising gross proceeds of about $939 with no placement agent or commissions. The warrants, each exercisable for one share of common stock at an initial exercise price of $6,000, include standard anti-dilution adjustments and ownership caps that limit any holder’s stake to 4.99%, or up to 9.99% at the investor’s election, reflecting a modest capital raise structured to manage dilution and concentration risk for existing shareholders.

The transaction, launched on February 19, 2026 and announced via press release on February 26, 2026, was conducted under Section 4(a)(2) and Rule 506(c) of Regulation D, with Zoomcar verifying all purchasers as accredited investors. As the warrants and underlying shares were sold in a private, unregistered offering and remain subject to transfer restrictions, the move signals a targeted approach to capital formation that preserves regulatory flexibility while potentially altering the company’s future capital structure if the warrants are eventually exercised.

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 Announces Private Placement of Common Stock Warrants

On February 19, 2026, Zoomcar Holdings, Inc. launched a private placement to offer common stock purchase warrants to verified accredited investors under an exemption from U.S. securities registration requirements. Each warrant is exercisable for one share of common stock at an initial exercise price of $6,000 per share, with the securities offered as unregistered instruments subject to applicable transfer restrictions.

Following the issuance of these warrants, the company plans to initiate a separate issuer exchange and/or tender offer allowing eligible accredited holders to exchange warrants for common shares at a currently anticipated ratio of one share for every 20,000 warrants, though terms may change before launch. The contemplated exchange offer would also rely on private-offering exemptions, with any resulting common shares issued as restricted stock and subject to lock-up and other contractual transfer limitations, underscoring a capital structure move that targets sophisticated investors without creating interdependence between the two transactions.

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 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.