Ola Electric’s Q4FY25 loss more than doubles to Rs 870 crore; revenue drops 62%

Bhavish Aggarwal-led Ola Electric reported a net loss of Rs 870 crore for the quarter ended March 2025, more than double the Rs 416 crore loss it posted a year earlier, as India's largest electric two-wheeler maker grappled with weakening demand, inventory shifts and execution bottlenecks.

Revenue from operations plunged 62% year-on-year to Rs 611 crore in Q4 FY25, down from Rs 1,598 crore in the same period last year. Vehicle registrations fell 52% year-on-year to 56,760 units during the quarter, while internal delivery estimates were lower still, at 51,375 units, suggesting a buildup in unsold inventory. 

The company's auto segment EBITDA margin collapsed to -78.6%, from -9.3% a year ago, reflecting deteriorating operating leverage and high provisioning costs. Consolidated EBITDA margin for the quarter stood at -101.4%.

Despite the challenging quarter, Ola said gross margin improved marginally to 19.2%, helped by a growing share of its Gen-3 platform, which offers 20% more power and range at 11% lower cost than Gen-2 scooters. The rollout of Gen-3 models was cited as a key driver of margin gains.

Ola Electric projected further improvement in gross margins—up by 10 percentage points in Q1 FY26—reaching 35% by Q2 FY26 with the expected accrual of Production-Linked Incentive (PLI) benefits. The company said that nearly 70% of its Q4 volumes came from its entry-level models, up from 43% a year ago, reflecting a demand shift toward lower-priced scooters. Ola Electric acknowledged execution challenges and slower-than-expected industry growth had weighed on its market share.

It added that FY26 would be focused on scaling revenue and achieving operating leverage to move toward profitability.

For the full year FY25, Ola Electric recorded deliveries of 3.59 lakh units, up from 3.29 lakh the previous year, maintaining its leadership in the electric two-wheeler segment. Full-year adjusted revenue was Rs 4,665 crore, and consolidated EBITDA margin was -34.6%.

The company’s gross cash stood at Rs 4,000 crore at the end of March, and it is evaluating a non-dilutive debt raise of up to Rs 1,700 crore to refinance existing obligations. In a bid to expand beyond urban markets, Ola Electric launched the Roadster X, its first electric motorcycle, targeting rural and Tier-3 India through its direct-to-customer (D2C) network spanning 4,000 touchpoints—half of which are in smaller towns and rural areas.

With the motorcycle market in India nearly twice the size of the scooter segment, the company is positioning its new product line to drive the next phase of electric vehicle adoption. Looking ahead, Ola Electric forecasts a recovery in Q1 FY26, with adjusted revenue expected to reach Rs 800–850 crore and a narrower auto EBITDA margin of -10%.