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Ola Electric’s financial performance worsened in the March quarter as the electric two-wheeler maker reported a sharp decline in revenue and loss widened.
The company posted a net loss of Rs 870 crore compared with Rs 416 crore in the same period last year, amid declining market share, a slump in the stock price, and increased regulatory scrutiny.
Operating revenue fell 61.8% YoY to Rs 611 crore from Rs 1,598 crore, driven by a drop in electric scooter sales — the Bengaluru-based company’s primary revenue source.
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“These (financial) numbers were impacted by a one-time issue with our registration process which we had highlighted during the course of the quarter itself. That subsequently got resolved in Q1 which is this quarter,” said founder Bhavish Aggarwal on an earnings call.
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“If you look at our Q1 outlook, we are sharing a revenue forecast of about Rs 800-850 crore, about 65,000 deliveries and a gross margin of about 28–30% which is much higher than Q4,” said Aggarwal Thursday.Ola Electric reduced total expenses by 31.6% to Rs 1,306 crore, largely due to a nearly Rs 1,000 crore cut in material costs.
Vehicle deliveries fell to 51,375 units in the quarter, down from 115,386 in the year-ago period. However, gross margin at its automotive business inched up to 19.2% from 18% last year.
Aggarwal said the company had planned to integrate its own battery cells into its vehicles in the current quarter. While the vehicles are ready with in-house cells, the rollout was deferred to allow time for stabilising the newly launched Roadster bikes and the Gen 3 scooter platform, said Aggarwal. The company also aims to improve cell production yields from 60% to 80% before the full-scale launch.
“We are delaying it a bit just to make sure the operating profile of the commercial business is first prioritised. Then we add on the cell integration to that,” he added.
A total capital expenditure of Rs 1,600 crore has been earmarked for expanding the company’s cell manufacturing capacity from the current 1.5 GWh to 5 GWh. “We have not yet kicked off this capex cycle on the cell yet because we are just waiting for stabilising yields in the 1.5 gigawatt hour,” Aggarwal said.
Ola Electric slipped to third position in India’s electric two-wheeler market in May, overtaken by legacy players TVS Motor and Bajaj Auto. The company held a 20% market share in May, down from 22.1% in April and significantly lower than the 50% share it commanded in May 2024.
Aggarwal described the March quarter as a period of “important learning and introspection” as Ola Electric navigates its transition to a publicly listed company.
“As we have transitioned from a private to a public company, we have to also manage operating risk in a slightly more mature way. So, that lesson has been well learned by everybody at Ola Electric,” he said. “Going forward, hence you will see us be much more deeper as well as thoughtful about capital allocation and operating risk.”
Earlier this month, Ola Electric’s board approved raising up to Rs 1,700 crore through non-convertible debentures and other debt instruments — the company’s first fundraising move since its August 2024 IPO. The funds are expected to support operations and strengthen the balance sheet amid regulatory challenges and stock market volatility.
The company has faced increasing scrutiny over discrepancies in reported sales figures, vehicle quality issues, and missing trade certificates at several retail outlets. In February, Vahan data showed only 8,652 registrations for Ola Electric, while the company claimed sales of 25,000 units in its filings. The discrepancy was attributed to a temporary backlog caused by ongoing contract renegotiations with registration service providers Rosmerta and Shimnit India.
The mismatch prompted inquiries by the Ministry of Heavy Industries and the Ministry of Road Transport and Highways.
Despite these headwinds, Ola Electric is expanding its product line. On May 23, it began deliveries of its Roadster X electric motorcycle, which Aggarwal said is generating strong interest. The company launched its third-generation electric scooters on January 31, promising improved performance and efficiency.
Shares of Ola Electric ended at Rs 53.2 on the BSE on Thursday, well below its IPO price of Rs 76.
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