Ola Electric’s financial performance deteriorated in the fourth quarter of FY25, with the electric two-wheeler maker reporting a steep decline in revenue and a twofold increase in net losses.
The company’s net loss widened to Rs 870 crore in Q4 FY25, up from Rs 416 crore in the same quarter last year, amid a challenging period marked by declining market share, a slump in its stock price, and regulatory scrutiny.
The Bengaluru-based firm's operating revenue declined 61.8% year-on-year (YoY) to Rs 611 crore from Rs 1,598 crore last year. It primarily generates revenue from electric scooter sales.
“These (financial) numbers were impacted by a one-time issue with our registration process, which we had highlighted during the course of the quarter itself. That subsequently got resolved in Q1, which is this quarter,” founder Bhavish Aggarwal said during the company’s quarterly earnings call on Thursday.
“If you look at our Q1 outlook, we are sharing a revenue forecast of about Rs 80 crore, about 65,000 deliveries and a gross margin of about 28-30%, which is much higher than Q4,” Aggarwal added.
Despite the revenue drop, the Bengaluru-based company managed to reduce its total expenses by 31.6% to Rs 1,306 crore during the quarter, driven largely by an almost Rs 1,000 crore cut in the cost of materials consumed.
Ola Electric delivered 51,375 vehicles during the quarter, down from 1,15,386 units in the same period last year. However, the gross margin from its automotive business improved slightly to 19.2%, up from 18%.
Aggarwal also said the company plans to integrate its own battery cells into its vehicles in the current quarter. While the vehicles are ready with in-house cells, the rollout was deferred to allow time for stabilising the newly launched Roadster bikes and the Gen 3 scooter platform. The company also aims to improve cell production yields from 60% to 80% before the full-scale launch.
“We are delaying it a bit just to make sure the operating profile of the commercial business is first prioritised. Then we add on the cell integration to that,” he added.
Ola Electric slipped to third position in India’s electric two-wheeler market in May, overtaken by legacy players TVS Motor and Bajaj Auto. The company held a 20% market share in May, down from 22.1% in April and significantly lower than the 50% share it commanded in May 2024.
Earlier this month, Ola Electric’s board approved raising up to Rs 1,700 crore through non-convertible debentures (NCDs) and other debt instruments — the company’s first fundraising move since its August 2024 IPO. The funds are expected to support operations and strengthen the balance sheet amid regulatory challenges and stock market volatility.
The company has faced increasing scrutiny over discrepancies in reported sales figures, vehicle quality issues, and missing trade certificates at several retail outlets. In February, Vahan data showed only 8,652 registrations for Ola Electric, while the company claimed sales of 25,000 units in its filings. The discrepancy was attributed to a temporary backlog caused by ongoing contract renegotiations with registration service providers Rosmerta and Shimnit India.
The mismatch prompted inquiries by the Ministry of Heavy Industries and the Ministry of Road Transport and Highways.
Meanwhile, Ola Cell Technologies Pvt Ltd — a wholly owned subsidiary — began constructing its gigafactory in May 2023 to manufacture lithium-ion cells for electric vehicles (EVs). In its IPO prospectus, Ola Electric had earmarked Rs 1,227 crore for expanding its cell production capacity from 5 GWh to 6.4 GWh under the second phase of the project. However, as of May 15, the monitoring agency ICRA reported that none of those funds had been utilised.
Despite these headwinds, Ola Electric is expanding its product line. On May 23, it began deliveries of its Roadster X electric motorcycle, which Aggarwal said is receiving strong interest. Earlier, on January 31, the company launched its third-generation electric scooters, promising improved performance and efficiency.
The company’s net loss widened to Rs 870 crore in Q4 FY25, up from Rs 416 crore in the same quarter last year, amid a challenging period marked by declining market share, a slump in its stock price, and regulatory scrutiny.
The Bengaluru-based firm's operating revenue declined 61.8% year-on-year (YoY) to Rs 611 crore from Rs 1,598 crore last year. It primarily generates revenue from electric scooter sales.
“These (financial) numbers were impacted by a one-time issue with our registration process, which we had highlighted during the course of the quarter itself. That subsequently got resolved in Q1, which is this quarter,” founder Bhavish Aggarwal said during the company’s quarterly earnings call on Thursday.
“If you look at our Q1 outlook, we are sharing a revenue forecast of about Rs 80 crore, about 65,000 deliveries and a gross margin of about 28-30%, which is much higher than Q4,” Aggarwal added.
Despite the revenue drop, the Bengaluru-based company managed to reduce its total expenses by 31.6% to Rs 1,306 crore during the quarter, driven largely by an almost Rs 1,000 crore cut in the cost of materials consumed.
Ola Electric delivered 51,375 vehicles during the quarter, down from 1,15,386 units in the same period last year. However, the gross margin from its automotive business improved slightly to 19.2%, up from 18%.
Aggarwal also said the company plans to integrate its own battery cells into its vehicles in the current quarter. While the vehicles are ready with in-house cells, the rollout was deferred to allow time for stabilising the newly launched Roadster bikes and the Gen 3 scooter platform. The company also aims to improve cell production yields from 60% to 80% before the full-scale launch.
“We are delaying it a bit just to make sure the operating profile of the commercial business is first prioritised. Then we add on the cell integration to that,” he added.
Ola Electric slipped to third position in India’s electric two-wheeler market in May, overtaken by legacy players TVS Motor and Bajaj Auto. The company held a 20% market share in May, down from 22.1% in April and significantly lower than the 50% share it commanded in May 2024.
Earlier this month, Ola Electric’s board approved raising up to Rs 1,700 crore through non-convertible debentures (NCDs) and other debt instruments — the company’s first fundraising move since its August 2024 IPO. The funds are expected to support operations and strengthen the balance sheet amid regulatory challenges and stock market volatility.
The company has faced increasing scrutiny over discrepancies in reported sales figures, vehicle quality issues, and missing trade certificates at several retail outlets. In February, Vahan data showed only 8,652 registrations for Ola Electric, while the company claimed sales of 25,000 units in its filings. The discrepancy was attributed to a temporary backlog caused by ongoing contract renegotiations with registration service providers Rosmerta and Shimnit India.
The mismatch prompted inquiries by the Ministry of Heavy Industries and the Ministry of Road Transport and Highways.
Meanwhile, Ola Cell Technologies Pvt Ltd — a wholly owned subsidiary — began constructing its gigafactory in May 2023 to manufacture lithium-ion cells for electric vehicles (EVs). In its IPO prospectus, Ola Electric had earmarked Rs 1,227 crore for expanding its cell production capacity from 5 GWh to 6.4 GWh under the second phase of the project. However, as of May 15, the monitoring agency ICRA reported that none of those funds had been utilised.
Despite these headwinds, Ola Electric is expanding its product line. On May 23, it began deliveries of its Roadster X electric motorcycle, which Aggarwal said is receiving strong interest. Earlier, on January 31, the company launched its third-generation electric scooters, promising improved performance and efficiency.
You may also like
Missing Mexican band feared dead as 5 bodies discovered in violence-hit state of Tamaulipas
MP: Three of a family killed, two injured in lightning incident
Peter Kwong dead: Big Trouble in Little China star dies as co-stars pay tribute
Thousands of pensioners with these 3 health conditions could be missing out on £108 boost
Govt deceiving farmers in name of Minimum Support Price: Congress
