Ola Electric swings big Q4 loss, bets on FY26 profit push

Ola Electric on Thursday reported a consolidated net loss of ₹870 crores for the fourth quarter that ended on March 31, 2025, while noting that it is targeting profitability in the current fiscal.

The company had reported a net loss of ₹416 crores in the January-March quarter of 2023-24 fiscal.

Revenue from operations declined to ₹611 crores as compared to ₹1,598 crores in the year-ago period, Ola Electric said in a regulatory filing.

For FY25, the company reported a net loss of ₹2,276 crores as compared with ₹1,584 crores in 2023-24 fiscal. Revenue from operations declined to ₹4,514 crore as against ₹5,010 crore in FY24.

Ola Electric said that is targeting profitability in FY26. 

ALSO READ | Customers want a gearbox in their electric bikes: Mohal Lalbhai, Founder and Group CEO of MATTER

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 ₹110 crores. That figure is now trending at ₹121 crores in April 2025, and is on track to achieve the target of ₹110 crores 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.

ALSO READ | Will India get a full reciprocal tariff exemption from US? Interim trade deal negotiations in final stages

The company is ramping up production at its manufacturing facility, with improving yields of its Bharat Cell, which is undergoing extensive testing across performance, life cycle, and safety parameters, with phased commercialisation 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 twice 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 ₹53.24 apiece on BSE.

Business