Ola Electric's revenue jumps 38.5% to Rs 1,240 crore in Q2FY25, losses fall to Rs 495 crore

Bhavish Aggarwal-led EV giant Ola Electric recorded a 38.5% year-on-year revenue increase to Rs 1,240 crore for Q2 FY25, up from Rs 896 crore in the same quarter last year.

The company's net loss fell to Rs 495 crore from Rs 524 crore reported a year earlier, though it rose from Rs 347 crore in the previous quarter (Q1FY25).

EBITDA losses stood at Rs 353 crore, a reduction from Rs 412 crore in the prior year but up from Rs 162 crore sequentially.

Improvement in gross margin

Additionally, Ola Electric’s gross margin improved to 20.3%, a notable rise of 12 pp year-on-year (YoY).

The company emphasized its ongoing strategy to invest in engineering and manufacturing capabilities, with the S1 Gen 3 series set to launch in January 2025, aiming for a further 20 percentage point boost in margins over the next 12 months.

Surge in vehicle deliveries and market strategy

The quarter saw a significant rise in vehicle deliveries, with a 73.6% year-over-year increase. Ola Electric delivered 98,619 units compared to 56,813 units in the same quarter last year.

The mass market S1 X portfolio, priced under Rs 1 lakh, was a major driver of growth, increasing by 15% quarter-on-quarter.

This portfolio continues to play a crucial role in boosting electric vehicle (EV) adoption, while the premium scooter lineup remains an essential contributor to revenue.

Expansion of retail network and product range

As of September 2024, Ola Electric operated 782 company-owned stores, with each location averaging 130 sales per quarter—significantly outperforming industry norms.

The company plans to expand its store network to 2,000 by March 2025 to enhance both sales and colocated service infrastructure.

Ola currently offers six EV scooter models ranging from Rs 75,000 to Rs 150,000, making it the broadest portfolio in the market. 

Moving forward, Ola intends to enter the three-wheeler segments and is set to release 20 new products over the next two years, with at least one launch per quarter.

Future plans

Ola Electric outlined ambitious future plans at its annual ‘Sankalp’ event in August 2024, including the Roadster motorcycle series.

This new line, scheduled for delivery beginning March 2025, will cover a wide pricing spectrum from Rs 74,999 to Rs 2,49,999, featuring three models and eight variants to appeal to both mass and premium markets.

The company also reiterated its commitment to vertical integration, highlighting its progress in battery cell production.

The Ola Gigafactory reached a milestone with over 20,000 cells manufactured during Q2 FY25. The use of these in-house produced cells in Ola’s electric two-wheelers is expected to commence by Q1 FY26, further solidifying its competitive advantage.