Ola Electric’s Net Loss Narrows In Q2, Sees 5% YoY Reduction

Registering a slight relief, Ola Electric Mobility has registered a 5 per cent year-on-year (YoY) reduction in its net losses in the second quarter of the current financial year (Q2FY25). As per the company’s unaudited consolidated financial results, its consolidated net loss in Q2FY25 narrowed to Rs 495 crore as compared to Rs 524 crore consolidated net loss in Q2FY24. However, the net loss widened from Rs 347 in Q1FY25.

The company’s revenue marked a growth of 38.5 per cent on a YoY basis as it increased to Rs 1,240 crore in Q2FY25 compared to Rs 896 crore in the same quarter a year ago. The company also recorded 98,619 deliveries in the quarter under review, a 73.6 per cent increase on a YoY basis from 56,813 deliveries in Q2FY24. However, the number of deliveries dipped from 1,25,198 in Q1FY25.

The earnings before interest, tax, depreciation and amortisation (EBITDA) losses for the quarter stood at Rs 223 crore as compared to Rs 321 crore EBITDA loss in Q2FY24. The company reported a consolidated EBITDA loss margin of 28.4 per cent during the quarter as compared to 46 per cent EBITDA loss margin in Q2FY24.

The company is now focusing on entering the other two and three-wheeler categories, with a portfolio of six models priced between Rs 75,000 to Rs 1,50,000. The company is planning to introduce 20 products over the next two years, with atleast one new product every quarter.

On the path to profitability front, the company stated, “Our gross margins for Q2 FY25 are at 20.6 per cent. Our focus on technology and vertical integration has a roadmap to take steady state margins to above 30 per cent even after incentives fall away. And since Gen 3 ramp up is starting in January, we should see consistent improvement in GM over next few quarters.”

As per the company, it has 782 company-owned stores as of 30 September 2024, with each store delivering 130 sales per quarter. It aims to take its network of company-owned stores (and colocated service infra) to 2,000 by March 2025. As per the company, its mass-market portfolio (sub Rs 1 lakh) continues to drive momentum and has grown 15 per cent on-quarter (QoQ) driving EV penetration while the premium portfolio continues to be the majority of revenue.