Ola Electric, India’s leading electric two-wheeler manufacturer, reported a consolidated net loss of ₹870 crore for the fourth quarter of FY25, more than doubling from ₹416 crore in the same period last year. This significant loss was accompanied by a 62% year-on-year decline in revenue, which fell to ₹611 crore from ₹1,598 crore.
📉 Financial Performance Highlights
🔻 Revenue and Deliveries
- Revenue: Decreased by 62% YoY to ₹611 crore.
- Vehicle Deliveries: Dropped to 51,375 units in Q4 FY25 from 1.15 lakh units in Q4 FY24.
📊 Profitability Metrics
- EBITDA Loss: Increased to ₹695 crore from ₹312 crore in the previous year.
- EBITDA Margin: Declined to -101.4% from -9.3% YoY.
- Gross Margin: Improved marginally to 19.2%, attributed to better monetization and a growing share of Gen-3 platform vehicles.
📉 Market Dynamics and Competitive Landscape
Ola Electric’s market share has seen a significant decline, dropping from nearly 50% in May 2024 to just 20%. This downturn is attributed to increased competition from established players like TVS Motor and Bajaj Auto, as well as internal challenges such as execution issues and slower-than-expected industry growth.
Additionally, Ola Electric has faced regulatory scrutiny over alleged sales data misreporting and improper disclosure practices, further exacerbating its challenges. Financial Times
🔄 Strategic Initiatives and Future Outlook
In response to the financial setbacks, Ola Electric’s CEO, Bhavish Aggarwal, emphasized a renewed focus on capital discipline and risk management. The company aims to achieve profitability in FY26 by improving gross margins and streamlining operations.
Key initiatives include:
- Project Vistaar and Project Lakshya: Aimed at reducing the Auto segment EBITDA break-even point to under 25,000 units per month.
- Product Expansion: Launch of the Roadster X electric motorcycle, targeting rural demand.
- Financial Measures: Approval to raise up to ₹1,700 crore through debt instruments to support operations.
📈 Full-Year FY25 Overview
- Total Revenue: Decreased by 10% to ₹4,514 crore from ₹5,010 crore in FY24.
- Net Loss: Widened to ₹2,276 crore from ₹1,584 crore in the previous fiscal year.
- Market Position: Despite challenges, Ola Electric maintained a leading position in the two-wheeler EV segment, delivering 3,59,221 units in FY25, up from 3,29,549 units in FY24, capturing a 30% market share.
