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Informist, Thursday, Nov. 6, 2025

MUMBAI – Ola Electric Mobility Ltd. managed to narrow its consolidated net loss in the September quarter compared to a year ago, supported by the fall in expenses even though the revenue declined sharply. The company's automotive segment achieved profitability for the first time in the September quarter, supported by a strong gross margin expansion, it said.

The consolidated net loss of the electric-two-wheeler maker narrowed to INR 4.18 billion in the reporting quarter compared to a net loss of INR 4.95 billion in the year-ago quarter. Its revenue fell over 43% on year and almost 17% on quarter to INR 6.90 billion. The company's total expenses fell nearly 44% to INR 8.93 billion. The cost of materials, which constituted nearly 60% of its total expenses, fell 52% on year to INR 5.14 billion. Other expenses, too, fell over 22% on year to INR 3.61 billion. 

For the six months ended September, the company's net loss widened slightly to INR 8.46 billion from INR 8.42 billion loss in the year-ago period. Its revenue almost halved to INR 15.18 billion from a year ago.

The company reported loss from its consolidated earnings before interest, tax, depreciation, and amortisation amounting INR 1.37 billion compared to an EBITDA loss of INR 2.79 billion a year ago. The consolidated EBITDA margin was (-)18.1% compared to (-)21.2% in the year-ago quarter. Its consolidated operating expenditure also fell to INR 4.16 billion from INR 6.04 billion a year ago. The consolidated gross margin increased sharply to 30.9% from 18.5% a year ago, marking the highest-ever figure. 

The automotive segment's EBITDA turned positive at INR 20 million compared to an EBITDA loss of INR 1.62 billion a year ago. The segment reported its first positive EBITDA margin of 0.3%, supported by the fall in auto operating expenditure to INR 2.58 billion.

The company delivered 52,666 units in the reporting quarter, which is down from 98,619 units it had delivered in the corresponding quarter a year ago. For the September quarter, the company produced 38,080 units of cells.   

Operating expenditure of the company was at INR 4.16 billion, down 31% on year. The company expects the consolidated operating expenditure to be reduced to around INR 3.50 billion-INR 3.75 billion by the June quarter of 2026-27 (Apr-Mar). The consolidated operating expenditure for the auto segment was at INR 2.58 billion, down 46% on year. The company aims to reduce the cost of this business to around 2.25 billion by the June quarter of FY26.

Ola Electric has a positive outlook for its cell business, with an installed capacity of 2.5 gigawatt-hours and plans to reach 5.9 gigawatt-hours by March 2026, it said in an investor presentation. "We are also the largest winner under the Government of India's Advanced Chemistry Cell PLI scheme, and expect to start claiming incentives from Q4 FY26 onward, as production volumes scale," the company said. 

Ola Electric said all its automotive products will migrate to the company's in-house cells, creating a baseline demand of 2–3 gigawatt-hours annually for cell business. The revenue from the cell business rose to INR 40 million in the reporting quarter from INR 10 million a year ago.  

OUTLOOK

The company expects to deliver approximately 100,000 units under its automotive business by the second half of FY26. The company expects FY26 consolidated revenue to be around INR 30 billion-INR 32 billion. It expects to exit the March quarter with an auto segment gross margin around 40% and EBITDA for the segment around 5%. The cell business will start contributing to the company's overall revenue by the March quarter and the gross margin for the segment is expected to stabilise at 30% by early FY27. 

The company released its quarterly results during market hours Thursday. Its shares hit a 5% lower band of INR 47.55 on the National Stock Exchange. At 1249 IST, the stock was down almost 4% at INR 48.15, extending its losing run for the second straight session.  End

Reported by Adhithya Aji

Edited by Deepshikha Bhardwaj

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