Ola Electric sees Q3 FY25 losses widen, dampened by lower demand
EV maker Ola Electric reported a loss of Rs 562 crore in Q3 FY25 as it struggles to attain profitability amid rising competition.
Bhavish Aggarwal-led Ola Electric reported widening losses in the three months ended December 31, bogged down by lower sales of its two-wheelers during the period. It reported a quarterly net loss of Rs 562 crore in FY25 compared to Rs 374 crore in the previous year.
Additionally, the company reported a 19.4% decline in revenue from operations in the third quarter to Rs 1,045 crore.
The lower sales come after Ola Electric lost its market leadership in the electric two-wheeler segment to legacy brand Bajaj Auto in December. However, the company has since regained its leadership position in the electric two-wheeler segment in January, followed by TVS Motor.
During the third quarter, the company revamped its brick-and-mortar presence, opening 3,200 stores in December alone. At present, the company operates around 4,000 stores and service centres across the country.
The company added that it has reduced its service turnaround time significantly to drive positive consumer sentiment for its products.
This statement comes after the company was reported to be dealing with mounting complaints over its products, leading to Central Consumer Protection Authority sending show cause notices.
However, Ola Electric reportedly managed to control its expenses for the period, which saw a 5.7% decline in expenses to Rs 1,505 crore during the third quarter.
The EV maker has taken a series of steps to achieve profitability, including a restructuring during the period, which saw the company letting go of around 450-500 employees.
Meanwhile, Ola Electric is gearing up for the launch of its Roadster series of motorcycles to bolster its product portfolio and grab a larger share of the two-wheeler segment. Its peer, IPO-bound Ather Energy, is also reportedly launching its motorcycles this year.
Shares of Ola Electric were down about 4%, trading at Rs 69 apiece as of 2:16 PM on the Bombay Stock Exchange post the earnings announcement.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric)
Edited by Suman Singh