Ola Electric has shown some improvement in its financial performance for the Q2 of the current financial year (FY25). The company’s net loss has narrowed by 5% year-on-year (YoY), coming down to Rs 495 crore, compared to Rs 524 crore in the same quarter last year (Q2FY24). However, the loss widened compared to the previous quarter (Q1FY25), where it stood at Rs 347 crore.
Ola Electric experienced significant growth in both revenue and deliveries. Its revenue for Q2 (FY25) grew by 38.5% YoY, reaching Rs 1,240 crore, up from Rs 896 crore in Q2FY24. The company also saw a huge increase in deliveries, with 98,619 vehicles delivered during the quarter, marking a 73.6% YoY rise from 56,813 deliveries in Q2FY24. However, the number of deliveries decreased compared to the previous quarter (Q1FY25), when 1,25,198 vehicles were delivered.
Improvement in EBITDA Losses
The company has also made progress in reducing its earnings losses. The EBITDA loss for Q2FY25 stood at Rs 223 crore, which is an improvement from Rs 321 crore in the same quarter last year. The EBITDA loss margin for the quarter was 28.4%, showing a notable reduction from 46% in Q2FY24.
Ola Electric is planning to expand its product portfolio in the coming years. The company is focusing on entering the two-wheeler and three-wheeler markets, offering six models priced between Rs 75,000 to Rs 1,50,000. Ola plans to introduce 20 new products over the next two years, with at least one new product launching every quarter. This move is aimed at increasing the company’s market reach and growing its sales.
Looking Ahead to Profitability
Ola Electric is also focused on improving its profitability. The company’s gross margin for Q2FY25 stood at 20.6%. It has a plan in place to boost margins to over 30% in the coming quarters by focusing on technology and vertical integration. As Ola Electric begins ramping up production of its Gen 3 model in January, the company expects steady improvement in its margins.
Ola Electric is working on expanding its sales network to support its growth. As of September 30, 2024, the company had 782 company-owned stores, each delivering an average of 130 sales per quarter. The company plans to increase this number to 2,000 stores by March 2025. Additionally, its mass-market portfolio, which includes vehicles priced under Rs 1 lakh, has shown a 15% quarter-on-quarter (QoQ) growth and is driving further penetration of electric vehicles (EVs) in the market.
Ola Electric is on a path to growth, with increased deliveries, improved revenue, and plans to expand its product offerings and sales network. While the company is still working towards profitability, its focus on innovation and product expansion is expected to help drive future success.
