Ola Electric Mobility has reported its third-quarter results for the fiscal year 2025, showing a widening of its net loss to Rs 564 crore, up from Rs 376 crore in the same period last year. The company attributes the losses to intensified competition and one-off costs related to resolving service issues. In the October-December period of 2024, the company's revenue from operations dropped to Rs 1,045 crore, compared to Rs 1,296 crore during the same quarter in the previous year.
Key Highlights from Ola Electric's Q3 Results
- Net Loss: Rs 564 crore for Q3 FY25, a significant increase from Rs 376 crore in Q3 FY24.
- Revenue Decline: Revenue for the quarter stood at Rs 1,045 crore, down from Rs 1,296 crore in the year-ago period.
- Total Expenses: Rs 1,505 crore, a slight decrease from Rs 1,597 crore in Q3 FY24.
- e2W Registrations: Ola Electric achieved a record of 3.33 lakh units in electric two-wheeler (e2W) registrations, up 37.5% from the previous year.
Competitive Pressure and Service Challenges Impact Performance
Despite strong sales in October, driven by festive demand, Ola Electric faced a challenging quarter overall due to heightened competition in the electric vehicle market and service-related hurdles. A substantial Rs 110 crore was spent on one-off costs to address warranty claims and other service issues, which further strained financial results.
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| Ola Electric plans to normalize costs with the technology-led launch of its Gen 3 electric vehicle. |
The company has since taken steps to improve its service capabilities, including reducing the Service Turnaround Time (TAT) from 2.5 days in September 2024 to just 1.1 days. Investments in service infrastructure—people, processes, and technology—have been central to this improvement.
Efforts to Stabilize and Rebuild Market Share
Ola Electric has also announced that it is addressing the workforce rationalization process, which incurred a Rs 13 crore one-time charge. Despite this, the company managed to reduce its overall people costs by 17%, excluding the one-time charges. The company is now focusing on reinvesting in frontline resources and expanding its network.
"With technology-led innovations and the launch of our Gen 3 electric vehicles, we remain on track to normalize costs from FY26 onwards," Ola Electric said in a letter to its shareholders.
Looking Ahead: What’s Next for Ola Electric?
Ola Electric’s leadership remains optimistic despite the challenges faced in Q3. The company is committed to its expansion strategy, focusing on growing its network infrastructure and team. The continued investment in customer service and product innovation is expected to help Ola Electric regain market share and improve margins in the coming quarters.
Conclusion
While Ola Electric's Q3 results highlight some financial strain, the company is taking proactive steps to address the challenges it faces. The company's growth in e2W registrations and focus on improving service turnaround time show promising signs for future recovery. With reinvestments in infrastructure and a strong product pipeline, Ola Electric is working towards a more stable and profitable future.
