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Informist, Monday, Jul. 14, 2025

 

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--Ola Electric Apr-Jun consol net loss INR 4.28 bln
--Ola Electric Apr-Jun consol net loss INR 4.28 bln vs INR 3.47 bln loss
--Ola Electric Apr-Jun consol revenue INR 8.28 bln vs INR 16.44 bln yr ago
--Ola Electric Apr-Jun consol EBITDA loss INR 2.4 bln vs INR 2.1 bln yr ago
--Ola Electric Apr-Jun consol EBITDA margin (-)28.6% vs (-)12.5% year ago
--Ola Electric Apr-Jun deliveries 68,192 units vs 125,198 units year ago
--Ola Electric sees FY26 revenue at INR 42-47 bln
--Ola Electric sees FY26 volumes at 325,000-375,000 units
--Ola Electric Apr-Jun automotive gross margin 25.6% vs 18.4% year ago 
--Ola Electric Apr-Jun consol gross margin 25.8% vs 18.4% year ago 
--Ola Electric: Auto business was EBITDA positive in June 
--Ola Electric: Q1 auto gross margin excludes output-linked scheme benefits 
--Ola Electric: Auto ops to see output-linked scheme benefits from Jul-Sep 
--Ola Electric Q1 avg selling price INR 121,000/unit vs INR 131,000 yr ago 
--Ola Electric sees FY26 gross margin at 35-40% 
--Ola Electric expects auto ops to turn EBITDA positive in Jul-Sept 
--Ola Electric:Auto capex to be about INR 3 bln for remaining period of FY26 
--Ola Electric: Auto ops should generate free cash flow by FY26-end 
--Ola Electric: No plan of major pdt or mfg capex this year for auto ops 
--Ola Electric:Q1 auto operating expenses INR 1.05 bln/mo vs INR 1.78 bln Q3

 

By Avishek Rakshit

 

KOLKATA – Ola Electric Mobility Ltd. reported its best-ever consolidated gross margin of 25.8% during Apr-Jun, driven by a reduction in production costs of its Generation 3 vehicles on vertical integration and higher contribution of in-house technology. However, the company's consolidated net loss widened to INR 4.3 billion during the June quarter as compared to the loss of INR 3.5 billion in the year-ago period.

 

Ola Electric's consolidated revenue during the June quarter nearly halved to INR 8.3 billion as compared to INR 16.4 billion it earned during Apr-Jun of 2024-25 (Apr-Mar) as vehicle deliveries fell to 68,192 units in the June quarter as against 125,198 units in the year-ago quarter. Moreover, average prices of vehicles fell by INR 10,000 per unit on year to INR 121,000 in the June quarter leading to lower revenue from vehicle sales.

 

Although, despite lower sales, the automotive business became earnings before interest, taxes, depreciation and amortisation positive during June, for the three months ended June, the EBITDA was still negative at INR 960 million. Moreover, during the quarter under review, the EBITDA margin declined on year to (-)11.6% as against (-)6.8% in the year-ago quarter.

 

In a communication to shareholders, Ola Electric said that its results were in line with the guidance which the company gave in the March quarter. A quarter ago, Ola Electric had said that its Apr-Jun revenue would be in the range of INR 8 billion-INR 8.5 billion.

 

Ola Electric said that its cost reduction program, christened Lakshya, delivered on its targets to reduce the company's operating expenses in the automotive segment to a little over INR 1 billion a month from INR 1.8 billion a month during Oct-Dec in FY25. With its consolidated operating expenses reducing to INR 1.5 billion a month, Ola Electric's EBITDA in the automotive segment improved. The company is of the view that there is more room to optimise such operating expenses in the coming quarters, and it is targeting to bring them down to INR 1.3 billion a month.

 

While profitability is improving, another major highlight is cashflow, Ola Electric said in the communication to its shareholders. Its automotive business was almost neutral on operating cashflow in the June quarter, and the segment's working capital improved with lower warranty claims, lower finished goods inventory days due to the delayering of its distribution network and better planning on raw material procurement.

 

Most of these gains are structural and will continue to benefit the company through FY26, Ola Electric said, adding that it expects the operating cashflow of the automotive business to turn positive later in FY26.

 

During Apr-Mar, Ola Electric had done a one-time provisioning of INR 2.5 billion for warranty claims on its Generation 1 and 2 vehicles. With a gradual improvement in quality, its Generation 3 vehicles have 60% lower warranty claims, and the company does not see the need to make such provisioning for warranty claims going forward.

 

The company furthered that the June quarter was the first full quarter when the complete portfolio of its Generation 3 scooters was rolled out in the market and almost 80% of its scooter sales are now the latest products. However, Ola Electric will continue to sell Generation 2 products in the market in the foreseeable future.

 

FY26 Outlook

 

Ola Electric said that it expects its sales volume in FY26 to be around 3,25,000-3,75,000 vehicles and revenue to be around INR 42 billion to INR 47 billion. The automotive gross margin in the June quarter was largely without Production Linked Incentive schemes, and July onwards Ola Electric expects to get the production linked incentive leading to its exit gross margin for FY26 to be around 35-40%.

 

The electric two-wheeler company said that with operating costs largely seen flat, EBITDA in the automotive segment should be 5% for the whole year. For the September quarter, the company expects auto EBITDA to turn positive and the auto business to generate operating cashflow later in FY26. For the remaining period of FY26, capital expenditure in the automotive segment would largely be around INR 3 billion as the company doesn't plan any major new product or manufacturing capital expenses in the current fiscal.

 

"For the cell business, we will be completing the 5GWh installation and most of the payouts of about INR 1000 crore (INR 10 billion) this year. 70% of this will be financed from the existing term loan. The cell business will be FCF (free cash flow) positive at the production scale of 5GWh by the end of FY27," Ola Electric said in the statement to its shareholders.

 

At 1226 IST, shares of Ola Electric traded 13.6% up at INR 45.22 on the National Stock Exchange.

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

 

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