Ola Electric posts revenue of Rs 1,240 crore in Q2FY25, up by 38.5%

The firm's consolidated loss narrowed to Rs 495 crore compared with Rs 524 crore in last quarter

Electric vehicle company Ola Electric said on Friday its revenue rose by 38.5 per cent to Rs 1,240 crore for the September quarter (Q2FY25), up from Rs 896 crore in the year-ago period.

 

The Bengaluru-based company reported a net loss of Rs 495 crore, which was lower than Rs 524 crore reported in the same quarter last year. On a sequential basis, the loss widened from Rs 347 crore in Q1FY25  to Rs 495 crore in Q2FY25.

 

Ebitda losses for the quarter (Q2FY25) stood at Rs 353 crore compared with Rs 412 crore reported in the year-ago period. However, on a quarter-on-quarter basis, operating losses widened from Rs 162 crore posted in Q1FY25 to Rs 353 crore in Q2FY25.

 

 

The company posted a gross margin of 20.3 per cent in Q2FY25 which saw an increase of 12 pp (Y-o-Y). 

 

The company said it was focusing on cost efficiency and should be able to keep operating expenses constant or even slightly lower as it grows topline, thereby improving operating leverage.

 

During the quarter, vehicles delivered by the company increased by 73.6 per cent and stood at 98,619 units against 56,813 units delivered in the same period last year. The company ramped up deliveries of its mass-market scooter portfolio (S1 X portfolio) during the quarter which helped accelerate growth. The mass market portfolio (sub Rs 1 lakh) continued to drive momentum and has grown by 15 per cent Q-o-Q, driving EV penetration while the premium portfolio continues to be a major contributor to revenue.

 

Ola Electric currently had 782 company-owned stores until September 2024, with each store delivering 130 sales on average per quarter, roughly 2-3x of the industry average. Ola Electric would expand its company-owned store (and colocated service infra) network to 2,000 by March 2025.

 

Ola Electric said it currently has the broadest portfolio in EV scooters with 6 models across a price range of Rs 75,000 to Rs 150,000. The company is now focusing on entering other 2/3W categories, and over the next 2 years, will launch 20 products, with at least 1 new product launch every quarter.

 

At its annual ‘Sankalp’ event in August 2024, the company announced the launch of its Roadster motorcycle series, with the first product to be delivered in March 2025. The products are priced to capture the entire spectrum of mass and premium motorcycles ranging from Rs 74,999 to Rs 249,999 across 3 models and 8 variants.

 

Ola Electric further reiterated that cell has been an integral part of the company’s vertical integration strategy. The company said it was on track to commence use of these cells in the E2W portfolio by Q1FY26. All production systems at the Ola Gigafactory are fully operational and trial production reached a new milestone in Q2FY25 with over 20,000 cells manufactured.

 

Market leadership

 

According to the Ola Electric’s shareholder letter, the company said it has maintained its market leadership with a 33 per cent market share during Q2FY25 despite aggressive competitive action. The firm said the E2W penetration was at an inflection point and has grown from 5.8 per cent in June 2024 to 7.5 per cent in September 2024, and in scooters from 16.1 per cent in June 2024 to 21.4 per cent in September 2024. In key states like UP, Rajasthan, Karnataka and Maharashtra, penetration is in the range of 25 per cent to 45 per cent.    Fine print  

Revenue up 38.5% Y-o-Y at ~1,240 cr  

Gross margin at 20.3%, a 12 pp Y-o-Y increase  98,619 units delivered in Q2, a 73.6% growth 

S1 Gen 3 products set for Jan 2025 delivery, boosting margins by 20 pp in 12 months