EV Giant Ola Electric Releases Q2FY25 Results, Revenue Falls 26% QoQ to Rs 1,214 Cr, Losses Rise 43%

Ola Electric, an electric two-wheeler maker, saw its operational revenue fall 26% to Rs 1,214 crore in Q2 FY25, from Rs 1,644 crore in Q1 FY25.

However, revenue increased by 39% year on year from Rs 873 crore in the second quarter of FY24. In a shareholder letter, the business credited the year-on-year gain to a 73.6% increase in deliveries, which reached 98,619 units in Q2 FY25.

Revenue from the vehicle section was Rs 1,215 crore, with the cell segment contributing Rs 1 crore. The company also reported Rs 100 crore in other income, bringing its total revenue to Rs 1,314 crore in Q2 FY25.

Related: Ather Energy Is Now India’s Latest Unicorn, Secures $71 Mn Fresh Funds

The cost of materials was the greatest expense for the Bhavish Aggarwal-led company, rising 20.3% to Rs 989 crore from Rs 822 crore in Q2 FY24. On a quarterly basis, the cost decreased by 26.25% from Rs 1,341 crore in Q1 FY25.

Employee benefits expenses totaled Rs 139 crore in Q2 FY25, while other expenses, including operational and administrative costs, accounted for Rs 465 crore.

The firm’s overall expenses for Q2 FY25 were Rs 1,593 crore, up 21.8% from Rs 1,308 crore in Q2 FY24. When compared sequentially, overall expenses fell by 13.8% from Rs 1,849 crore in Q1 FY25.

Overall, the company reported a net loss of Rs 495 crore, up 42.65% from Rs 347 crore in the previous quarter. The losses decreased by 5.5% year on year, from Rs 524 crore in Q2 FY24.

Among venture-funded startups, Ola Electric’s closest competitor Ather reported Rs 339 crore in revenue and a net loss of Rs 183 crore in Q1 FY25. Its Q2 results have yet to be announced. Tarun Mehta’s firm also filed draft IPO documents in September.

Following repeated dips in market share, Ola Electric regained traction in October, with sales climbing during the holiday season. The company sold 41,605 units in October, increasing its market share to 30% from 27% in September. However, this result is still lower than its previous market shares, which were 32% in August, 39% in July, and 49% in June.

At the close of trading on November 8, Ola Electric’s shares were trading at Rs 72.72, roughly 54% lower than their top of Rs 157.53 in mid-August.