Ola Electric Reports Loss of Rs 564 Crore in Q3 FY25, Revenue Drops 19%
Ola Electric, led by Bhavish Aggarwal, has reported a significant net loss of Rs 564 crore for the third quarter (Q3 FY25), marking a 13.94% increase from the previous quarter’s loss of Rs 495 crore. The electric vehicle giant’s loss also widened by 50% compared to Rs 376 crore in the same quarter last year (Q3 FY24).
Mumbai: Ola Electric, led by Bhavish Aggarwal, has reported a significant net loss of Rs 564 crore for the third quarter (Q3 FY25), marking a 13.94% increase from the previous quarter’s loss of Rs 495 crore. The electric vehicle giant’s loss also widened by 50% compared to Rs 376 crore in the same quarter last year (Q3 FY24).
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Ola Electric’s Revenue Declines 19% in Q3 FY25
The company’s revenue from operations for Q3 FY25 stood at Rs 1,045 crore, reflecting a 19.36% decline compared to Rs 1,296 crore in Q3 FY24. Ola Electric attributed the increase in losses and drop in revenue to “highly competitive intensity and service challenges” faced during the quarter.
EBITDA Losses and Operational Challenges
Ola Electric’s EBITDA loss increased to Rs 460 crore in the December quarter, up from Rs 301 crore in the same period last fiscal year. The company’s consolidated EBITDA, excluding exceptional costs like warranties and one-time employee-related expenses, stood at -29.2% in Q3, compared to -19.4% in Q2. The auto segment’s EBITDA, excluding exceptional costs, dropped to -18.5% from -12.8% in the previous quarter.
Challenges and Market Expansion Efforts
Despite facing a weak quarter, with October witnessing a boost in sales due to festival demand, Ola Electric cited high competition and service issues as key factors for the decline. However, the company has stated that it has resolved these service challenges, and with expanding its network, it expects improvements in market share and margins moving forward.
Stock Performance and Future Outlook
Following the earnings announcement, Ola Electric’s stock saw a decline, dropping 3.35% to Rs 69.43 per share. Despite the ongoing financial hurdles, the company remains committed to growing its presence in the electric two-wheeler market.
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In the previous quarter (Q2 FY25), the company had already reported a 26.1% drop in revenue, from Rs 1,644 crore in Q1 to Rs 1,214 crore. Moving forward, Ola Electric continues to focus on overcoming financial setbacks while expanding its electric vehicle footprint across India.
