Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1237

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 3
Chunk 1237
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    Less: Marketing costs (excl. brand marketing) (B) 
     595,219  
     2,323,300 
  
    Contribution profit / (loss) 
    $4,250,778  
    $(979,154)
  
    Contribution margin 
     47% 
     -10%

Adjusted EBITDA is a non-GAAP
financial measure that represents our net income or loss adjusted for (i) provision for income taxes; (ii) other income and (expense),
net; (iii) depreciation and amortization; (iv) stock-based compensation expense; and (v) finance costs.

We use adjusted EBITDA in
conjunction with net income or loss, its corresponding GAAP measure, as a performance measure that we use to assess our operating performance
and operating leverage in our business. The above items are excluded from our adjusted EBITDA measure because these items are non-cash
in nature, or because the amount and timing of these items is unpredictable, or they are not driven by core results of operations, thereby
rendering comparisons with prior periods and competitors less meaningful.

We believe that adjusted
EBITDA provides useful information to investors and others in understanding and evaluating the results of our operations, as well as
provides a useful measure for period-to-period comparisons of our business performance. Moreover, we have included adjusted EBITDA because
it is a key measurement used by our management internally to make operating decisions, including those related to analyzing operating
expenses, evaluating performance, and performing strategic planning and annual budgeting.

Our adjusted EBITDA loss
has reduced to $9.91 million during the year ended March 31, 2025, as compared to an adjusted EBITDA loss of $17.85 million during the
year ended March 31, 2024.

73

This improvement is a result
of broad-based cost reduction and optimization initiatives that reduced our cost of revenue, technology and development costs, sales
and marketing costs, and general and administrative costs (as described above) during the year ended March 31, 2025, as compared to the
same period in 2025. 

Adjusted EBITDA has limitations as a financial measure, should be
considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with
GAAP. These limitations include the following: 

    ●
    Adjusted EBITDA does not