Ola Electric reports revenue decline and widening losses in March quarter

Mumbai: Ola Electric's financial performance worsened in the March quarter as the electric two-wheeler maker reported a sharp decline in revenue and loss widened.
The company posted a net loss of ₹870 crore compared with ₹416 crore in the same period last year, amid declining market share, a slump in the stock price, and increased regulatory scrutiny.
Operating revenue fell 61.8% YoY to ₹611 crore from ₹1,598 crore, driven by a drop in electric scooter sales - the Bengaluru-based company's primary revenue source.
"These (financial) numbers were impacted by a one-time issue with our registration process which we had highlighted during the course of the quarter itself. That subsequently got resolved in Q1 which is this quarter," said founder Bhavish Aggarwal on an earnings call.
Agencies
Better Q1 Outlook
"If you look at our Q1 outlook, we are sharing a revenue forecast of about ₹800-850 crore, about 65,000 deliveries and a gross margin of about 28-30% which is much higher than Q4," said Aggarwal Thursday.
Ola Electric reduced total expenses by 31.6% to ₹1,306 crore, largely due to a nearly ₹1,000 crore cut in material costs.
Vehicle deliveries fell to 51,375 units in the quarter, down from 115,386 in the year-ago period. However, gross margin at its automotive business inched up to 19.2% from 18% last year.
Aggarwal said the company had planned to integrate its own battery cells into its vehicles in the current quarter. While the vehicles are ready with in-house cells, the rollout was deferred to allow time for stabilising the newly launched Roadster bikes and the Gen 3 scooter platform, said Aggarwal. The company also aims to improve cell production yields from 60% to 80% before the full-scale launch. "We are delaying it a bit just to make sure the operating profile of the commercial business is first prioritised. Then we add on the cell integration to that," he added. A total capital expenditure of ₹1,600 crore has been earmarked for expanding the company's cell manufacturing capacity from the current 1.5 GWh to 5 GWh. "We have not yet kicked off this capex cycle on the cell yet because we are just waiting for stabilising yields in the 1.5 gigawatt hour," Aggarwal said. Ola Electric slipped to third position in India's electric two-wheeler market in May, overtaken by legacy players
TVS Motor
and
Bajaj Auto
. The company held a 20% market share in May, down from 22.1% in April and significantly lower than the 50% share it commanded in May 2024. Aggarwal described the March quarter as a period of "important learning and introspection" as Ola Electric navigates its transition to a publicly listed company. "As we have transitioned from a private to a public company, we have to also manage operating risk in a slightly more mature way. So, that lesson has been well learned by everybody at Ola Electric," he said. "Going forward, hence you will see us be much more deeper as well as thoughtful about capital allocation and operating risk."
Earlier this month, Ola Electric's board approved raising up to ₹1,700 crore through non-convertible debentures and other debt instruments - the company's first fundraising move since its August 2024 IPO. The funds are expected to support operations and strengthen the balance sheet amid regulatory challenges and stock market volatility.
The company has faced increasing scrutiny over discrepancies in reported sales figures, vehicle quality issues, and missing trade certificates at several retail outlets. In February, Vahan data showed only 8,652 registrations for Ola Electric, while the company claimed sales of 25,000 units in its filings. The discrepancy was attributed to a temporary backlog caused by ongoing contract renegotiations with registration service providers Rosmerta and Shimnit India.
The mismatch prompted inquiries by the Ministry of Heavy Industries and the Ministry of Road Transport and Highways. Despite these headwinds, Ola Electric is expanding its product line. On May 23, it began deliveries of its Roadster X electric motorcycle, which Aggarwal said is generating strong interest. The company launched its third-generation electric scooters on January 31, promising improved performance and efficiency.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

2 hours ago

• Business Standard

Climate technology startups stumble in a cold investment climate in India

Investment by private equity (PE) and venture capital (VC) funds in the country's climate technology (tech) startups has seen a sharp fall, despite the big focus of the government on reducing carbon emissions and pushing for cleaner fuels. The reason: There is a big gap between startup climate tech needs for long-term funding and what VCs find bankable. According to data by research agency Tracxn, PE and VCs in 2023 put in substantial $1.66 billion in over 157 climate tech companies, with an average deal size of $10.57 million. But that number nosedived to $910 million in 2024, with the average deal size falling by half to an average of $5.5 million. And in 2025 to date, PE/VCs have put in a mere $270 million in the first six months of the year, but in only 37 companies — a third of what they did in the last year. The value of the largest deal this year to date has been in Euler Motors, which raised $75 million from the UK government climate fund British International Investment, a development finance institution of the UK government, and Hero MotoCorp in May of this year. The top five deals (which collectively received $188 million) until now accounted for over 68 per cent of the total PE/VC investment. Explaining the trend, Vasudha Madhavan, founder and chief executive officer of Ostara Advisors — which has facilitated deals worth over $125 million in the climate tech space, where they have focused exclusively for the past four years — says that they get a lot of demand for organising investments from startups in this space — ranging from agritech firms working on smart regenerative practices, Internet of Things-based models to make places and buildings more energy efficient, electric mobility, and companies in the recycling space, etc. But, says Madhavan: 'Only a few make the cut. One of our key criteria is that the company should be in a position to raise $2-4 million. Only then do we take them to the larger fund audience and support them at a strategic level. We come in at the Series A level — when the company is generating $2-4 million in annualised revenue and has some visibility towards profitability, even if it is at the earnings before interest, tax, depreciation, and amortisation level.' She also points out that government policy support helps in making investors comfortable — for instance, Ostara is talking to companies in the solar space, where the government has a big role and a supportive policy. However, despite the problems, some of the key funds that have invested in the tech space include British International Investment (it has done two deals this year already), Zerodha founder Nithin Kamath's Rainmatter Foundation (two deals this year), UK-based EM Impact Capital, an independent investment firm focused on emerging markets (one deal this year), and Zurich-based responsAbility (one deal until now this year), which invests in climate finance and impact-driven startups, among others.

Time of India

2 hours ago

• Time of India

Kazam raises $6.2 million to expand EV infrastructure

Bengaluru: Bengaluru-based electric mobility technology company Kazam has raised $6.2 million led by the International Finance Corporation (IFC), with participation from existing investors Vertex Ventures and Avaana Capital. The fresh capital will help Kazam expand its digital EV infrastructure offerings across markets and support the global shift towards sustainable transportation, founder and CEO Akshay Shekhar told TOI. The latest round brings Kazam's total funding to $19.2 million, including $13 million in equity financing from earlier rounds led by Avaana Capital, Vertex Ventures, and Chakra Ventures. "Kazam is building the digital infrastructure for EVs at scale, a critical piece in the global shift to clean mobility," said Akshay Shekhar, CEO and Cofounder, Kazam. Kazam witnessed significant growth, achieving revenues of $6 million in FY25, four times its FY24 revenues, and is targeting $12 million this fiscal year. The company onboarded over 68,000 chargers, enabled more than 5 million charging sessions, and facilitated over 45 GWh of energy, avoiding an estimated 46,000 tons of carbon dioxide. Over May, the Kazam platform powered 25 million electric kilometres across 80 cities and ten countries. Founded in 2020, Kazam provides device-agnostic solutions for charging and battery swapping operators, OEMs, and fleet operators.

Time of India

3 hours ago

• Time of India

ED may chargesheet Robert Vadra soon

New Delhi: The Enforcement Directorate (ED) is likely to file its final prosecution complaint (equivalent to chargesheet) in three money laundering cases allegedly involving businessman Robert Vadra within the next three months. Following these filings, the federal agency will push for court cognisance to kickstart trials against Vadra and co-accused, people in the know told ET. The ED's investigation under the Prevention of Money Laundering Act (PMLA) will also lead to the confiscation of properties allegedly acquired with illicit funds in these cases. Vadra, also husband of Congress MP Priyanka Gandhi, in April this year was questioned in connection with a money laundering probe related to a land deal in Shikohpur, Haryana. Agency sources confirm his questioning in the Haryana land deal is complete. He has been summoned for questioning in a money laundering case linked to UK-based arms consultant Sanjay Bhandari and will soon face a final round of questioning in the Bikaner land deal case as well, people in the know told ET. Vadra has consistently denied the accusations, labelling them a political witch hunt and accusing the BJP of political vendetta. Live Events Haryana Land Deal The Haryana land deal case dates back to a 2018 FIR against then-Haryana CM Bhupinder Singh Hooda, Vadra, and real estate firms DLF and Onkareshwar Properties. It's alleged that in February 2008, Vadra's Skylight Hospitality, launched with ₹1 lakh capital, purchased 3.5 acres in Manesar-Shikohpur for ₹7.5 crore. The land's title was reportedly transferred to Vadra within 24 hours. A month later, the Hooda-led Haryana government allegedly permitted Skylight Hospitality to develop a housing project, significantly increasing the land's value. In June 2008, DLF reportedly agreed to buy the plot for ₹58 crore, allegedly resulting in substantial gains for Vadra. Bikaner Land Deal In the Bikaner land deal, Vadra is accused of making a 615% profit by purchasing 275 bighas for ₹72 lakh and selling it for a significantly higher amount. The ED questioned Vadra and his mother about this probe in 2019. An ET report from January 2020 indicated that the ED concluded Vadra and his company, M/s Skylight Hospitality, did not conduct proper due diligence in purchasing two land parcels in Bikaner, and cheques were issued to 'land owners' solely at the 'behest of' a company's representative. Sanjay Bhandari Link The third case is linked to alleged arms dealer Sanjay Bhandari. The ED's 2023 chargesheet claims Bhandari acquired a London property at 12 Bryanston Square in 2009 and renovated it "as per the directions of Robert Vadra, who provided the funds for the renovation." Vadra has denied any direct or indirect ownership of London property.