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Ola Electric losses surge 50% to Rs 564 Cr in Q3 FY25, revenue declines

EntrackrEntrackr · 5m ago
Ola Electric losses surge 50% to Rs 564 Cr in Q3 FY25, revenue declines
Medial

url: https://entrackr.com/news/ola-electric-losses-surge-50-to-rs-564-cr-in-q3-fy25-revenue-declines-8698803. Content: Ola Electric reported its Q3 FY25 results on Friday, showing a 19.4% year-on-year decline in revenue. At the same time, the company's losses grew by 50%, highlighting a challenging quarter for the SoftBank-backed electric mobility firm. Ola Electric’s revenue from operations decreased to Rs 1,045 crore in Q3 FY25 from Rs 1,296 crore in Q3 FY24, its unaudited consolidated financial statements sourced from the National Stock Exchange show. Income from the sale of electric scooters was the sole source of revenue for Ola Electric while the collection from the sale of batteries contributed only a small portion in the third quarter of the ongoing fiscal year. For the EV scooter manufacturer, the cost of procurement of materials accounted for 56% of the total cost which stood at Rs 851 crore in Q3 FY24. Employee benefits, advertising, and technical support were some other cost centers, taking the total burn to Rs 1,505 crore in Q3 FY25. A decline in sales and fixed costs caused Ola Electric's losses to rise by 50% in Q3 FY25, reaching Rs 564 crore compared to Rs 376 crore in the same quarter of the previous fiscal year (Q3 FY24). In January, Ola Electric regained its top spot in the electric two-wheeler (EV 2W) segment, capturing a 24.91% market share with 24,330 units sold, according to Vahan data. TVS Motors followed in second place, selling 23,788 units, while Bajaj Auto claimed a 21.80% market share with 21,294 units sold.

Ola Electric losses surge 2X to Rs 862 Cr in Q4 FY25, revenue declines 62%

EntrackrEntrackr · 1m ago
Ola Electric losses surge 2X to Rs 862 Cr in Q4 FY25, revenue declines 62%
Medial

Ola Electric saw a 62% year-on-year decline in revenue in Q4 FY25, while its losses surged 106%, underscoring a tough quarter for the SoftBank-backed electric mobility company. Ola Electric witnessed a turbulent financial performance during the fourth quarter of FY25, as its revenue saw a sharp year-on-year decline of 62%. In parallel, the company’s losses more than doubled, indicating the mounting challenges faced by the SoftBank-backed electric mobility firm. Ola Electric’s revenue from operations decreased to Rs 611 crore in Q4 FY25 from Rs 1,598 crore in Q4 FY24, its consolidated financial statements sourced from the National Stock Exchange show. For the full fiscal year (FY25), Ola Electric’s operating revenue decreased 10% to Rs 4,514 crore in FY25 from Rs 5,010 crore in FY24. Income from the sale of electric scooters was the sole source of revenue for Ola Electric while the collection from the sale of batteries contributed only a small portion in the last quarter of the previous fiscal year. For the EV scooter maker, material procurement made up 33% of the total costs at Rs 527 crore in Q4 FY25. Other major expenses included employee benefits, advertising, and technical support, pushing the total quarterly burn to Rs 1,598 crore. For the full fiscal year ending March 2025, total expenses rose to Rs 7,185 crore. A higher decline in sales caused Ola Electric's losses to rise by 106% in Q4 FY25, reaching Rs 862 crore compared to Rs 418 crore in the same quarter of the previous fiscal year (Q4 FY24). For FY25, the firm’s losses stood at Rs 2,276 crore in FY25, up from Rs 1,584 crore in FY24. Recently, Ola Electric Mobility has approved a plan to raise up to Rs 1,700 crore through debt instruments. The Bhavish Aggarwal-led company secured the second position in the electric two-wheeler segment in April, with TVS Motor emerging as the market leader. For the first time, Ather Energy has surpassed Ola Electric in quarterly revenue. In Q4 FY25, Ather reported an operating revenue of Rs 676 crore, ahead of Ola Electric’s Rs 611 crore. At the close of today's trading session, Ola Electric's stock was priced at Rs 53.20, giving the company a market capitalization of Rs 23,465 crore.

Ola Electric can achieve EBITDA breakeven by FY27: Goldman Sachs

EntrackrEntrackr · 10m ago
Ola Electric can achieve EBITDA breakeven by FY27: Goldman Sachs
Medial

Ola Electric, the Bengaluru-based electric vehicle (EV) manufacturer, is projected to reach EBITDA breakeven by the fiscal year ending March 2027, according to a recent report by Goldman Sachs. The company is expected to see its revenue grow at 2.5 times the current rate, with a fivefold increase in vehicle volume over the next three years. “We expect FY24 to FY30E revenue growth of +40% CAGR (vs FY22 to FY24 of +240%), implying FCF breakeven (ex-subsidies) in FY30E. We expect OLAE to achieve 11.9% / 27% EBITDA margin / ROIC by FY30E vs -19.7% / -32.0% pc in FY24,” said the Goldman Sachs report. Despite the promising projection, Ola Electric’s revenue growth in FY24 and FY21 Q1 has been modest. Its revenue from operations grew only 2.8% to Rs 1,644 crore in Q1 FY25 from Rs 1,598 crore in Q4 FY24. The company, however, managed to control its losses by 16.6% to Rs 347 crore in Q1 FY25. During the last fiscal year (FY24), it reported Rs 5,010 crore revenue and Rs 1,584 core loss. Goldman Sachs has issued a “buy” rating for Ola Electric, with a 12-month target price of Rs 160 per share, suggesting a potential 50% upside. Currently, Ola Electric shares are trading at Rs 113 per share. The brokerage firm expects Ola Electric’s revenue to increase by over 40% from FY24 to FY27. In contrast, TVS Motor, Bajaj Auto, and Hero MotoCorp are projected to grow by 16%, 19%, and 10%, respectively. As per the report, Ola Electric’s products are approximately 18% cheaper on a running cost basis when compared to its EV peers. Ola Electric’s market share rose from 21% in FY23 to 35% in FY24, and further to 49% in Q1 FY25, according to Jefferies. However, the share dropped to 39% in July and 32% in August. In August, TVS and Bajaj each held a 19% market share, while Ather Energy had a 12% share. The competition in the EV sector is expected to intensify as Ola Electric prepares to launch its motorcycle and electric three-wheeler (e-rickshaw) in the coming months. Meanwhile, Ather Energy, which is also gearing up for a public listing, has announced plans to begin manufacturing motorcycles as well.

Ola Electric reports Rs 1,644 Cr revenue in Q1 FY25; losses fall 17%

EntrackrEntrackr · 11m ago
Ola Electric reports Rs 1,644 Cr revenue in Q1 FY25; losses fall 17%
Medial

Electric mobility company Ola Electric has filed its first-ever quarterly result after becoming a public entity early this month. The company managed to improve its topline by 2.9% Q-o-Q while the losses for the SoftBank-backed firm declined by 16.6% in the same period. Ola Electric’s revenue from operations increased to Rs 1,644 crore in Q1 FY25 from Rs 1,598 crore in Q4 FY24, its unaudited consolidated financial statements sourced from the National Stock Exchange show. Income from the sale of electric scooters was the sole source of revenue for Ola Electric while the income from the sale of batteries contributed only a small portion in the first quarter of the ongoing fiscal year. For the EV scooter manufacturer, the cost of procurement of materials accounted for 72.5% of the total cost which stood at Rs 1,341 crore in Q1 FY24. Employee benefits, advertising, and technical support were some other cost centers, taking the total burn to Rs 1849 crore in Q1 FY25. The marginal increase in sales and cost-effective measures helped Ola Electric to control its losses by 16.6% to Rs 347 crore in Q1 FY25 as compared to Rs 416 crore in the last quarter of FY24. As per Vahan data, Ola Electric has continued to maintain its supremacy in electric two-wheeler space as it sold 41,597 units in July with a market share of 39%. TVS came in second place followed by Bajaj Auto, Ather Energy and Hero MotoCorp. In FY24, Ola Electric sold 3,29,618 scooters in FY24 — almost 2X as compared to FY23. This also reflected in the company’s scale which grew nearly two-fold to Rs 5,010 crore in FY24 from Rs 2,631 crore in FY23. Ola Electric went public this month and raised Rs 5,500 crore fresh issue and an offer for sale of up to 84,941,997 shares amounting to Rs 646 crore. The firm is currently trading at Rs 111 (as on 04.58 PM) with a total market capitalization of Rs 48,955 crore (approximately $5.9 billion)

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