Ola Electric Mobility Limited, a leading electric vehicle (EV) manufacturer in India, announced its audited financial results for the quarter and financial year ended March 31, 2025. The company reported significant improvements in gross margins, operational efficiencies, and market leadership in the electric two-wheeler (E2W) segment, positioning itself for profitability in FY26.
Financial Highlights
Year-over-Year (YoY) Performance
- Revenue: Consolidated revenue for FY25 was ₹4,645 crores, a decrease from ₹5,126 crores in FY24, reflecting challenges in sales volume growth.
- Gross Margins: Improved significantly by 38% YoY, rising from 14.8% in FY24 to 20.5% in FY25, driven by cost reduction initiatives and the rollout of the Gen 3 platform.
- Deliveries: Ola Electric delivered 3,59,221 units in FY25, up from 3,29,549 units in FY24, maintaining a 30% market share in the E2W segment (per VAHAN data).
- S1 X Deliveries: The S1 X model saw a 3.5X YoY increase, with 1,96,123 units delivered in FY25 compared to 53,083 units in FY24.
- Operating Expenses: The Auto segment’s operating cost structure was ₹121 crores in April 2025, trending towards the target of ₹110 crores by June 2025.
Quarter-over-Quarter (QoQ) Performance
- Gross Margins: Q1 FY26 estimates indicate a 10 percentage point improvement over Q4 FY25, with expectations to reach approximately 35% in Q2 FY26, including Production-Linked Incentive (PLI) benefits.
- Operational Efficiency: Initiatives like Project Vistaar and Project Lakshya reduced the Auto segment EBITDA break-even point to under 25,000 units per month, enhancing cost efficiency.
Strategic Initiatives
- Project Vistaar: Launched in November 2024, this initiative streamlined operations, reducing delivery times from 12 to 3-4 days and enabling same-day delivery via #HyperDelivery. Ola Electric expanded to over 4,000 touchpoints, becoming India’s largest EV distribution network, with over 50% of stores in Tier 3 and rural markets.
- Project Lakshya: Focused on cost reduction, this project has lowered the Auto segment’s EBITDA break-even threshold, supporting the company’s target for EBITDA profitability in FY26.
- Product Portfolio Expansion: The launch of Gen 3 S1 scooters and Roadster X motorcycles enhanced product offerings. Gen 3 scooters deliver 20% higher peak power, 20% more range, and an 11% cost reduction compared to Gen 2. The Roadster X, India’s first commuter EV motorcycle, features a mid-drive motor, chain drive, and integrated MCU for improved performance.
- Bharat Cell Production: Ola Electric’s Gigafactory is in the final testing phase for Bharat Cell production, with commercial rollout planned for FY26, optimizing supply chain dynamics.
Financial Position
- IPO Proceeds: Ola Electric raised ₹5,275 crores (net of ₹225 crores in issue expenses) through its IPO in August 2024. Utilization includes:
- ₹800 crores for repayment of subsidiary indebtedness (fully utilized).
- ₹315 crores for research and product development (₹1,285 crores unutilized).
- ₹217 crores for organic growth initiatives (₹133 crores unutilized).
- ₹1,120 crores for general corporate purposes (₹177 crores unutilized).
- ₹1,228 crores allocated for Ola Cell Technologies’ capital expenditure (unutilized).
- Cash Flow: Consolidated negative cash flow from operations was ₹2,391 crores in FY25, up from ₹633 crores in FY24, due to operating losses and lower-than-expected sales growth. Standalone negative cash flow was ₹117 crores in FY25, improved from ₹312 crores in FY24.
- Fundraising: The company raised ₹200 crores through non-convertible debentures in FY25 and approved raising up to ₹1,700 crores via additional debt securities in May 2025.
- Assets and Liabilities: Consolidated non-current assets increased to ₹2,885 crores from ₹2,381 crores, while standalone total assets grew to ₹11,644 crores from ₹6,197 crores, driven by IPO proceeds and investments in subsidiaries (₹5,082 crores).
Challenges and Outlook
Despite revenue decline, Ola Electric’s focus on cost optimization, network expansion, and product innovation positions it for sustainable growth. The company addressed regulatory queries from the National Stock Exchange regarding vehicle sales data, clarifying that the reported 25,000 units in February 2025 were bookings, not deliveries. The management anticipates no material financial impact from these communications or ongoing consumer grievance inquiries by the Central Consumer Protection Authority.
Ola Electric aims to achieve Auto segment EBITDA profitability in FY26, leveraging higher gross margins, increased S1 market share, and strong demand for Roadster motorcycles.