Ola Electric drops after Q4 net loss widens to Rs 870 cr
Revenue from operations tumbled 61.8% YoY to Rs 611 crore in Q4 FY25.
The company reported pre-tax loss of Rs 870 crore in Q4 FY25 as compared with a pre-tax loss of Rs 416 crore in Q4 FY24.
The company reported a negative EBITDA of Rs 658 crore in Q4 FY25, compared to a negative EBITDA of Rs 269 crore in Q4 FY24. The EBITDA margin stood at negative 101.4% in Q4 FY25, against negative 16.4% in the same quarter last year.
Deliveries dropped 55.48% to 51,375 units in Q4 FY25 compared with 115,386 units in Q4 FY24.
With a sharp focus on cost reduction and profitability through Project Lakshya, the company had earlier set a target operating cost structure of Rs 110 crore for the auto segment. As of April 2025, the cost stands at Rs 121 crore and is on track to reach the target of Rs 110 crore by June 2025.
In April and May 2025, the company has shown early indicators of structural improvements translating into business momentum. These include higher gross margins (excluding PLI) and reduced operating expenses, higher monetization through add-ons, Gen 3 sales exceeding Gen 2 by over 2x, and strong demand for Roadster Motorcycles. The company expects to continue this strong performance through the rest of the year and achieve auto segment EBITDA profitability in FY26.
The rollout of Gen 3 in Q4 FY25 was a key driver of the companys gross margin improvement. Q1 FY26 gross margins showed an improvement of 10 pp over Q4 FY25, which will further be helped by the scale-up of the Gen 3 platform. Notably, this performance does not include PLI on Gen3, which is expected to accrue in Q2FY26 vs 100% of the product portfolio accruing PLI in Q3FY25. The company expects its gross margins to improve to approximately 35% in Q2 FY26 with PLI.
Ola Electric is also ramping up production at its Ola Gigafactory with improving yields of its Bharat Cell, which is undergoing extensive testing across performance, lifecycle, and safety parameters, with phased commercialization in a couple of months. This phased rollout will help optimize supply chain dynamics, maintain quality consistency across early production batches, and gather real-world performance feedback ahead of mass commercialization.
The company expects adjusted revenue between Rs 800 crore and Rs 850 crore, deliveries of 65,000 units, and an auto EBITDA margin of negative 10% in Q1 FY26.
On a full-year basis, the companys consolidated net loss widened to Rs 2,276 crore in FY25 compared with Rs 1,584 crore in FY24. Revenue from operations fell 9.9% to Rs 4,514 crore in FY25, compared with Rs 5,010 crore in FY24.
Through Project Vistaar and Project Lakshya, Ola has reduced its auto segment EBITDA break-even point to under 25,000 units per month. With increasing S1 market share, new motorcycle launches, and improving cost metrics, the company aims to achieve auto segment EBITDA profitability in FY26.
Ola Electric Mobility is a leading electric vehicle (EV) manufacturer in India, specializing in the vertical integration of technology and manufacturing for EVs and their components, including battery cells.
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