The electric two-wheeler maker Ola Electric Mobility’s share price declined 9.7% to an intra-day low of Rs 48.06 on the National Stock Exchange. The company’s net losses in the fourth quarter widened to Rs 870 crore compared with a net loss of Rs 416 crore in the same period a year ago. Its revenue from operations in the reporting period plunged 62% year-on-year YoY to Rs 611 crore.
Ola Electric: Execution challenges
Ola Electric said there has been pressure due to market share in recent quarters owing to execution challenges and slower-than-expected industry growth.
The company’s deliveries declined to 51,375 units in Q4 FY25 from 1.15 lakh units in Q4 FY24.
Ola’s gross margin improved slightly to 19.2% due to better monetisation and the increased contribution of Gen-3 platform vehicles.
For the full financial year 2024-25, Ola Electric recorded total deliveries of 3.59 lakh units, an increase from 3.29 lakh in FY24. In FY25, Ola’s adjusted revenue came in at Rs 4,665 crore, with a consolidated EBITDA margin of -34.6%.
With motorcycles accounting for twice the scooter market, the company is betting big on rural demand, aided by a strong direct-to-customer (D2C) network spanning over 4,000 touchpoints, half of which are in Tier-3 or rural India.
Motorcycles account for double the size of the scooter market, leading the company to place a significant focus on rural demand, supported by an extensive direct-to-customer (D2C) network that encompasses more than 4,000 touchpoints, with around 50% located in Tier-3 or rural regions of India.
Ola Electric Q3 earnings
The company posted a consolidated net loss of Rs 564 crore YoY, widening from Rs 376 crore recorded in Q3 FY24. The revenue from operations came in at Rs 1,045 crore in the third quarter of the financial year 2024-25, a decline of 19% YoY, as against Rs 1,296 crore reported in the same period of the last financial year.
Ola Electric stock performance
The electric vehicle maker’s stock has risen 0.6% in the last week. It has risen by 9% in the previous one month. However, the share price of Ola Electric has erased 43% of investors’ wealth in the past six months.