OLA Electric Improves Gross Margins By 38% YoY In FY25; Targets Profitability In FY26
New Delhi: Ola Electric on Thursday reported a consolidated net loss of Rs 870 crore for the fourth quarter ended March 31, 2025, while noting that it is targeting profitability in the current fiscal.
The company had reported a net loss of Rs 416 crore in the January-March quarter of 2023-24 fiscal.
Revenue from operations declined to Rs 611 crore as compared with Rs 1,598 crore in the year-ago period, Ola Electric said in a regulatory filing.
For FY25, the company reported a net loss of Rs 2,276 crore as compared with Rs 1,584 crore in 2023-24 fiscal. Revenue from operations declined to Rs 4,514 crore as against Rs 5,010 crore in FY24.
Ola Electric said it is targeting profitability in FY26. "FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability," the company said. Ola Electric said that its gross margins improved by 38 per cent YoY in FY25 while the first quarter of FY26 saw an improvement of 10 percentage points in gross margins over Q4 FY25.
The company said it maintained its market leadership position with 3,59,221 units delivered in FY25, as against 3,29,549 units delivered in FY24, on the back of its improved Gen 3 S1 scooter portfolio, capturing a market share of 30 per cent.
With a sharp focus on cost reduction and profitability through Project Lakshya, the company earlier set the target operating cost structure for the auto segment as Rs 110 crore and is now trending at Rs 121 crore in April 2025, and is on track to achieve the target of Rs 110 crore by June 2025, it said.
Through Project Vistaar and Project Lakshya, the company has been able to structurally reduce its auto segment EBITDA break-even point to under 25,000 units per month, Ola Electric said.
"The lower break-even threshold alongside increasing revenue through industry growth, increasing S1 market share, and introduction of motorcycles enables the company to target Auto segment EBITDA profitability through FY26," it added.
The company is ramping up production at its manufacturing facility, with improving yields of its Bharat Cell which is undergoing extensive testing across performance, lifecycle, and safety parameters, with phased commercialization in a couple of months, the company said.
"FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability," it added.
April and May 2025 have shown early indicators of structural improvements translating into business momentum, Ola said. These include higher Gross Margins excluding PLI and reduced Operating expenses, higher monetisation through add-ons, with Gen 3 sales now being over 2X that of Gen 2, and strong demand for our Roadster Motorcycles, it added.
Ola Electric shares on Thursday ended 0.6 per cent up at Rs 53.24 apiece on BSE.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
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