Latest news with #Gen3
Business Standard
5 days ago
- Automotive
- Business Standard
Ola Electric drops after Q4 net loss widens to Rs 870 cr
Ola Electric Mobility declined 5.69% to Rs 50.21 after the company's consolidated net loss widened to Rs 870 crore in Q4 FY25, compared with net loss of Rs 416 crore in Q4 FY24. 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.
Economic Times
5 days ago
- Automotive
- Economic Times
Ola Electric reports revenue decline and widening losses in March quarter
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Ola Electric's financial performance worsened in the March quarter as the electric two-wheeler maker reported a sharp decline in revenue and loss company posted a net loss of ₹870 crore compared with ₹416 crore in the same period last year, amid declining market share, a slump in the stock price, and increased regulatory revenue fell 61.8% YoY to ₹611 crore from ₹1,598 crore, driven by a drop in electric scooter sales - the Bengaluru-based company's primary revenue source."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."If you look at our Q1 outlook, we are sharing a revenue forecast of about ₹800-850 crore, about 65,000 deliveries and a gross margin of about 28-30% which is much higher than Q4," said Aggarwal Electric reduced total expenses by 31.6% to ₹1,306 crore, largely due to a nearly ₹1,000 crore cut in material 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 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 ₹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 ₹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 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 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.
Time of India
5 days ago
- Automotive
- Time of India
Ola Electric reports revenue decline and widening losses in March quarter
Mumbai: 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 ₹870 crore compared with ₹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 ₹611 crore from ₹1,598 crore, driven by a drop in electric scooter sales - the Bengaluru-based company's primary revenue source. "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. Agencies Better Q1 Outlook "If you look at our Q1 outlook, we are sharing a revenue forecast of about ₹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 ₹1,306 crore, largely due to a nearly ₹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 ₹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 ₹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.
Mint
5 days ago
- Automotive
- Mint
Ola Electric Q4 Results: Net loss more than doubles to ₹870 crore
Ola Electric Q4 Results: Two-wheeler electric vehicle (EV) manufacturer Ola Electric on Thursday, May 29, informed that its consolidated net loss for the January-March (Q4) quarter of the financial year 2024-25 more than doubled to ₹ 870 crore amid a sharp decline in topline. The net loss in the corresponding quarter last year stood at ₹ 416 crore. The revenue from operations tumbled 62% year-on-year (YoY) to ₹ 611 crore during the quarter under review. In the January-March 2024 quarter, the company's revenue stood at ₹ 1,508 crore. The consolidated segment EBITDA loss for the March 2025 quarter was at ₹ 658 crore, a multifold rise over the EBITDA loss of ₹ 269 crore posted in the year-ago period. Meanwhile, the EBITDA margin was down 101.4%. The company expects its gross margins to improve to approximately 35% in Q2 FY26. It also targets the Auto segment EBITDA profitability through FY26. In Q4 FY25, Ola delivered 51,375 units, a decline of 55% over 1,15,386 units in Q4 FY24. Ola has struggled with slowing sales, regulatory pressure and competition from established two-wheeler makers ever since its stock market debut in August 2024. The company is yet to report a profit. For the full financial year, however, Ola claimed, quoting VAHAN data, that it was the market leader, with 3,59,221 units delivered in FY25, as against 3,29,549 units delivered in FY24, on the back of its improved Gen 3 S1 scooter portfolio, capturing a market share of 30%. Commenting on its roadmap for FY26, Ola said it will focus on scaling revenue and operating leverage as it eyes profitability. 'With a robust product roadmap, vertical integration and R&D focus, and strong distribution and service infrastructure, Ola Electric is well-positioned to drive the next phase of EV adoption in India across both scooters and motorcycles,' the company said.
Time of India
5 days ago
- Automotive
- Time of India
Ola Electric FY25 revenue declines 9% to ₹4,645 cr; margins improve as company targets FY26 profitability
Ola Electric reported a 9 per cent decline in revenue for the financial year ended March 31, 2025, with total income falling to ₹4,645 crore from ₹5,126 crore in FY24. The company's net loss increased 22 per cent year-on-year to ₹870 crore, up from approximately ₹713 crore last year. Despite the decline in revenue and rise in losses, Ola Electric posted a 38 per cent year-on-year improvement in gross margins—from 14.8 per cent in FY24 to 20.5 per cent in FY25. Q1 FY26 margins further improved by 10 percentage points over Q4 FY25. The company expects gross margins to rise to around 35 per cent in Q2 FY26, aided by the scale-up of its Gen 3 platform and anticipated Production Linked Incentive (PLI) accruals. Break-even point reduced According to the company's statement, it maintained its leadership in the electric two-wheeler (E2W) segment, delivering 3,59,221 units in FY25 compared to 3,29,549 units in FY24, representing a 30 per cent market share (as per VAHAN data). The company has reduced its Auto segment EBITDA break-even point to under 25,000 units per month through internal cost and network optimisation initiatives—Project Lakshya and Project Vistaar. The Auto segment operating cost was ₹121 crore in April 2025, with a target of ₹110 crore by June 2025. With the ramp-up of Gen 3 scooters, strong uptake of the mass-market S1 X model, and the launch of the Roadster X motorcycle, Ola Electric said it is on track to achieve segment profitability in FY26.>
