Karooooo Ltd. Q2 2027 Earnings Recap

Karooooo’s shares were roughly flat, down 1.0% after earnings. The quarter showed accelerating subscription growth and record operating profit, while the company reiterated its FY 2027 outlook.

Key Takeaways

• Cartrack subscription revenue grew 20% year over year, accelerating from 19% in Q1; constant-currency growth was 23%, up from 21%.
• Total revenue rose 22% to ZAR 1.64 billion, while operating profit increased 19% to a record ZAR 422 million.
• Subscribers reached approximately 2.9 million, up 18%; net additions rose 34% to 94,516, a second-quarter record.
• Cartrack’s operating margin was 28%. Karooooo Logistics revenue grew 36% to ZAR 189 million, with a 6% operating margin reflecting investment in driver availability and network expansion.
• Management reiterated its FY 2027 outlook.