Ola Electric
Nov. 9, 2024, 3:39 a.m.
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Ola Electric Q2 FY25 Results: Net Loss Narrows, Revenue Jumps 39% YoY

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Ola Electric Mobility, the prominent Indian electric two-wheeler manufacturer, reported a consolidated net loss of ₹495 crore for the second quarter of FY25. This marks a reduction from the ₹524 crore net loss reported in the same period last year but an increase from the ₹347 crore loss in the preceding quarter. Despite the loss, the company recorded significant revenue growth, with a 39% year-on-year increase to ₹1,214 crore compared to ₹873 crore in Q2 FY24.

Operational Highlights and Challenges

Ola Electric's CEO, Bhavish Aggarwal, addressed investors in a post-earnings call, emphasizing the company’s focus on scaling up its distribution and service network. “In Q2, we faced capacity challenges within our service network due to the rapid expansion of sales,” Aggarwal said. He assured stakeholders that measures are being taken to strengthen co-located service centers alongside sales growth.

The firm has been under scrutiny following over 10,000 customer complaints, which Aggarwal confirmed have now been resolved. The company plans an ambitious expansion from its current 782 stores to 2,000 outlets by March 2025 to better meet service demands and customer expectations.

Delivery and Market Penetration Growth

Ola Electric’s vehicle deliveries surged during Q2, with 98,619 units sold—a 73.6% increase from 56,813 units in the same quarter last year. This growth was fueled by the popularity of its mass-market S1 X scooter range, priced below ₹1 lakh, which saw a 15% quarter-on-quarter rise.

Aggarwal noted that electric two-wheeler penetration had increased significantly, moving from 5.8% in June 2024 to 7.5% by September 2024. In the scooter segment specifically, penetration climbed from 16.1% to 21.4% over the same period. Key markets such as Uttar Pradesh, Rajasthan, Karnataka, and Maharashtra showed penetration rates of 25% to 45%, highlighting strong regional adoption, particularly in northern India.

Strategic Roadmap

Looking ahead, Ola Electric is set to roll out its Gen 3 platform in January 2025 and aims to deliver the first models from its highly anticipated Roadster motorcycle series in Q4 FY25. These advancements underscore the company’s commitment to innovation and capturing a larger share of the evolving electric vehicle market.

The company’s shares closed at ₹72.72 on November 8, down 4.3% from its issue price of ₹76, reflecting the mixed sentiment in the market post-results.



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