Ola Electric net loss widens to ₹870 crore in Q4, revenue drops 62%

Ola Electric Mobility Limited, the Bengaluru-based electric two-wheeler maker, announced its fourth quarter results for FY25 on Thursday, 29 May, 2025. The company reported a consolidated net loss of ₹870 crore in Q4 FY25, compared to ₹416 crore in the same quarter last year. Revenue from operations declined 61.8% year-on-year to ₹611 crore from ₹1,598 crore.

The company posted an EBITDA loss of ₹695 crore in Q4 FY25, against a loss of ₹312 crore in Q4 FY24. Total deliveries for the quarter stood at 51,375 units, nearly half of what was recorded a year ago.

For FY25, Ola Electric reported a net loss of ₹2,276 crore, compared to ₹1,584 crore in the previous financial year (FY24). Its revenue from operations fell to ₹4,514 crore from ₹5,010 crore recorded in FY24.

The company stated it is aiming to achieve profitability in FY26. “FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability,” the company said. It also mentioned that gross margins improved by 38% year-on-year in FY25, while the first quarter of FY26 saw an improvement of 10 percentage points in gross margins over Q4 FY25.

Ola Electric noted that it retained its market leadership by delivering 3,59,221 units in FY25, up from 3,29,549 units in FY24. This growth was supported by its upgraded Gen 3 S1 scooter portfolio, helping the company capture a 30 per cent market share.

With a sharp focus on cost reduction and profitability through Project Lakshya, the company earlier set the target operating cost structure for the auto segment as ₹110 crore and is now trending at ₹121 crore in April 2025, and is on track to achieve the target of ₹110 crore by June 2025, it said.

The company highlighted that through Project Vistaar and Project Lakshya, it has successfully brought down the EBITDA break-even point for its auto segment to under 25,000 units per month.

"The lower break-even threshold alongside increasing revenue through industry growth, increasing S1 market share, and introduction of motorcycles enables the company to target Auto segment EBITDA profitability through FY26," it added.

Ola Electric is also scaling up production at its manufacturing unit, with the Bharat Cell undergoing rigorous testing for performance, lifecycle, and safety. The company said commercialization will begin in a phased manner over the next few months.

“FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability,” it added.

The company noted that April and May 2025 reflected early signs of structural gains translating into business traction. These included improved Gross Margins (excluding PLI), reduced operating expenses, better monetisation via add-ons, a more than twofold increase in Gen 3 sales over Gen 2, and robust demand for its Roadster Motorcycles.

On Thursday, Ola Electric shares closed 0.6% higher at ₹53.24 apiece on the BSE.