Ola Electric’s loss doubles, revenue falls 62%

Bengaluru: Bengaluru-headquartered Ola Electric on Thursday posted a widened loss of Rs 870 crore for the January-March quarter, hurt by loss in market share as well as executional challenges as it attempted to aggressively scale up sales and operations. Its losses stood at Rs 416 crore in the same quarter a year earlier. 

Its revenue from operations in the reporting quarter also declined 62% on an annual basis to Rs 611 crore. It had reported a revenue of Rs 1,045 crore in the same quarter last year. 

“We also realised that we need to get better in managing operational risks and strike a better balance between growth and profitability. We have seen increased competitive intensity from traditional original equipment manufacturers (OEMs) across all levers including distribution, product expansion and discounting,” the company said in its investor presentation. 

From an industry point of view, the electric vehicle (EV) maker pointed to a relatively slower demand in fiscal year 2025 (FY25), driven by weakness in urban demand at a time when the EV industry was largely urban focused in both products (scooters) and distribution (tier 1) coupled with a steady moderation in government subsidies. However, it sees demand returning on the back of tapering inflation and declining interest rates. 

Its deliveries fell to 51,375 units from 1.15 lakh units in the fourth quarter (Q4) of FY25. Its auto earnings before interest, tax, depreciation and amortisation (EBITDA) margin plummeted to -78.6% as compared to -9.3% on a year-on-year basis.

“FY26 will be focused on scaling revenue and operating leverage as we march towards sustainable profitability,” the company added. 

Ola Electric as a company with a vocal founder and chief Bhavish Aggarwal has been running into several problems. According to media reports 107 out of 131 Ola showrooms in Maharashtra did not have proper trade certificates because of which notices have been sent and orders have been given to shut down these stores.

Prior to that, the company had also received several notices from the Central Consumer Protection Authority (CCPA) into alleged service deficiencies and consumer rights violations.