Ola Electric Q2 Results: Firm posts net loss of ₹495 crore; revenue rises 39% y-o-y
Ola Electric Q2 Results: Ola Electric Mobility reported a net loss of ₹495 crore for Q2 FY25, down from ₹524 crore a year ago, but up from ₹347 crore in the previous quarter. Revenue increased 39% to ₹1,214 crore compared to ₹873 crore last year.
Electric two-wheeler maker Ola Electric Mobility posted a consolidated net loss of ₹495 crore for the September 2024 quarter (Q2 FY25) on Friday, November 8. The loss narrowed from ₹524 crore a year earlier, but widened over ₹347 crore in the June 2024 quarter.
The firm’s consolidated revenue from operations stood at ₹1,214 crore in Q2 FY25, up 39%, compared with ₹873 crore in the year-ago period.
In an earnings call with investors after the results, Ola Electric CEO Bhavish Aggarwal said the company was strongly focused on expanding its distribution and service network in the country. “Over the last quarter or so, especially in Q2, we had a bit of a capacity challenge in service. Our sales have expanded much faster than we have expanded our service network,” Aggarwal said.
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Ola has reportedly been under government scrutiny after over 10,000 customer complaints against the company. Aggarwal told investors that the backlog of complaints has been resolved and that the firm is focused on expanding its sales and co-located service infrastructure.
The company plans to expand from 782 stores as of September 2024 to 2,000 stores by March 2025.
Rise in delivery
During the quarter, the EV maker delivered 98,619 units, up 73.6% from 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 portfolio comprising sub- ₹1 lakh models continued to drive momentum, growing 15% quarter-on-quarter.
However, the premium portfolio continues to be the major contributor in revenue.
Electric two-wheeler penetration is at an inflection point and has grown from 5.8% in June 2024 to 7.5% in September 2024, Aggarwal said. In the scooter category, it has grown from 16.1% in June 2024 to 21.4% in September 2024. In key states like Uttar Pradesh, Rajasthan, Karnataka and Maharashtra, penetration ranged from 25% to 45%.
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In states like Rajasthan and Uttar Pradesh, which have seen heavy penetration, Ola’s mass-market portfolio has taken off, Aggarwal said. The company is focusing on increasing its presence in the north Indian market on the back of its mass market portfolio, Aggarwal said.
Ola is set to deliver its Gen 3 platform, announced in August 2024, by January next year. The company is also on track to deliver the first of its motorcycle offerings from the Roadster series in Q4FY25, Aggarwal said.
Ola Electric announced its results post market close. Its shares on November 8 closed at ₹72.72 apiece, 4.3% below the issue price of ₹76.
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