Ola Electric targets EBITDA breakeven for Q1 FY26 amid cost cuts
Ola Electric expects to achieve profitability for its automotive segment in the first quarter of FY26, with the financial impact of cost cutting initiatives taking full effect from April 2025.
Ola Electric Mobility Ltd. said it has completed a company-wide cost-cutting and efficiency drive, positioning itself for profitability in the next fiscal.
The Bengaluru-based company said that its Network Transformation and Opex Reduction Programme, launched in November 2024, has resulted in sustainable cost savings of Rs 90 crore per month. As a result, Ola Electric expects to achieve EBITDA breakeven for its automotive segment in the first quarter of FY26, with the financial impact of these initiatives taking full effect from April 2025, the company disclosed in a filing to the stock exchanges.
The program includes shutting all regional warehouses, direct factory-to-store shipments, automation of registration processes, and streamlining the sales and service network. The company said these changes have led to reduced vehicle inventory days from 35 to 20 days, and cut customer delivery times from 12 days to three to four days.
Ola has earlier informed the exchanges that vehicle registrations reported on the VAHAN portal may decline in February 2025 due to ongoing renegotiations with its registration agencies, Rosmerta Digital Services Pvt. Ltd. and Shimnit India Pvt. Ltd. Ola Electric, which sells directly to customers rather than through dealerships, said these discussions are aimed at reducing costs and improving registration process efficiencies.
The company maintained that actual sales remain strong despite the registration dip, and expects numbers to normalise in the coming weeks.
CEO Bhavish Aggarwal said on social media that these processes have been "streamlined". "Daily registrations are now at previous month levels. Will clear all backlog through next 10-15 days," Aggarwal's post added.
Ola Electric reported widening losses in Q3 FY25, with a net loss of Rs 562 crore, up from Rs 374 crore a year earlier, as revenue from operations declined 19.4% to Rs 1,045 crore. The latest cost-cutting initiatives could help ease these financial pressures.
The company’s daily vehicle registrations have now surpassed 800 units per day, exceeding the average daily sales recorded in January and February 2025, according to its exchange filing.
With these structural changes in place, Ola Electric said it believes it has laid the groundwork for long-term profitable growth in India’s rapidly evolving electric vehicle market.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director at Ola Electric.)
Edited by Jyoti Narayan