Ola Electric’s Q3FY25 net loss widens to Rs 564 cr; revenue declines 19%

The company had posted a net loss of Rs 495 crore in the preceding quarter ending September 2024.

Revenue from operations declined 19.36% year-on-year to Rs 1,045 crore from Rs 1,296 crore. At the operational level, EBITDA loss widened to Rs 460 crore from Rs 301 crore in the corresponding quarter of the previous fiscal.

"October saw strong sales driven by festive demand, but the overall quarter remained weak due to heightened competition and service challenges. We have now resolved service issues, expanded our network, and regained market share and margins. In January, we reclaimed market leadership with an estimated gross margin of approximately 26%, up from 20.4% in Q3 FY25," the company stated.

Despite a 14% quarter-on-quarter revenue decline to Rs 1,075 crore due to competitive pressures and festive discounts, Ola Electric's automotive gross margin improved by 20 basis points to 20.8%.

The company attributed this resilience to a 1 percentage point reduction in BOM costs and Production-Linked Incentive (PLI) accruals, which contributed a 5 percentage point margin uplift.

These gains were largely reinvested to drive growth.

Consolidated EBITDA, excluding exceptional costs like warranty and one-time employee-related expenses, fell to -29.2% in Q3FY25 from -19.4% in Q2FY25. Similarly, Auto Segment EBITDA, excluding exceptional costs, dropped to -18.5% from -12.8% in the previous quarter.

Strong automotive gross margin amid revenue decline

Ola Electric reported an automotive segment gross margin of 20.8% in Q3 FY25, reflecting a 2.2 percentage point (pp) year-on-year increase.

Despite a 14% quarter-on-quarter (QoQ) revenue decline to Rs 1,075 crore due to intensified competition and festive discounts, the company maintained strong margins, improving by 20 basis points (bps) QoQ.

This resilience was driven by a 1pp reduction in Bill of Materials (BOM) costs and the benefit of Production-Linked Incentive (PLI) accruals across its product range, contributing to margin growth.

These gains were reinvested to enhance affordability and drive electric vehicle (EV) adoption.

Path to profitability and growth strategy

Ola Electric aims to achieve profitability through improvements in gross margin, optimisation of operating costs, and operational leverage. The strategy includes expanding its product portfolio, entering new categories (motorcycles, Gig & Z), and maintaining a leadership position in EV technology.

Launch of S1 Gen 3 scooters

As part of its continued investment in engineering and vertical integration, Ola Electric introduced the S1 Gen 3 scooters in January 2025, with deliveries set to begin in February 2025. Compared to the Gen 2, the new generation offers a 20% increase in peak power, an 11% reduction in cost, and a 20% improvement in range.

Expanded S1 portfolio for diverse customer segments

The S1 portfolio now includes 14 products across Gen 2 and Gen 3, catering to both performance-focused and value-driven customers. The Gen 2 lineup is strategically priced to enhance market penetration, while the Gen 3 models contribute to margin improvement.

Entry into the EV motorcycle market

In February 2025, Ola Electric entered the motorcycle market with the launch of its mass-market EV motorcycles, Roadster X and Roadster X+.

These motorcycles are available in five battery pack configurations, with deliveries beginning in mid-March 2025. With this launch, the company now offers the most extensive EV lineup in India, featuring 14 scooter and 5 motorcycle variants.

New entry-level scooters for broader market reach

In November 2024, the company announced its entry-level scooter portfolio, including Ola Gig, Gig+, and S1 Z.

These models are equipped with a portable battery powered by the in-house 4680 Bharat Cell, enabling Ola Electric to serve new customer segments in both personal and commercial mobility.

Deliveries are set to commence in Q1 FY26.

Vehicle deliveries and distribution expansion

During Q3 FY25, Ola Electric delivered 84,029 vehicles, slightly lower than the 86,775 units delivered in the same period last year.

However, the company significantly expanded its distribution network, exceeding its Q2 target of 2,000 stores and growing to over 4,000 touchpoints by December 2024—up from 784 company-owned stores in September 2024.

This marks one of the most significant EV distribution expansions globally, solidifying Ola Electric’s position as India’s largest EV distribution network.

Enhanced service infrastructure for better customer experience

Alongside distribution expansion, Ola Electric has focused on strengthening its service network to enhance the ownership experience.

All new Ola Stores are co-located with service centres as part of the #HyperService initiative.

The company is also training 1 lakh third-party mechanics with EV expertise, ensuring nationwide service coverage and fostering greater EV adoption.

These efforts have significantly reduced service turnaround times, boosting customer satisfaction and confidence in Ola Electric products.

Advancements in battery technology

Ola Electric’s in-house 4680 Bharat Cell is on track for commercialisation, with module-level testing for vehicle integration initiated in Q3 FY25.

Vehicle deliveries featuring these cells are expected to begin in Q1 FY26.

The company continues to invest in battery R&D and has commenced work on the Gen 2 NMC Cell, which offers higher energy density, as well as LFP Cells for automotive and battery energy storage system (BESS) applications.