Ola Electric, whose CEO is Bhavish Aggarwal, recorded a steep decline in its fourth-quarter (Q4) FY25 financials as revenue fell and net losses increased more than twofold on a YoY basis.
As per its stock exchange report on Thursday, the EV manufacturer reported a net loss of ₹870 crore for Q4 FY25, a sharp improvement from ₹416 crore in Q4 FY24. Revenue from operations plummeted by 61.8% YoY to ₹611 crore in Q4 FY25 from ₹1,598 crore in Q4 FY24.
This marks one of the company’s weakest quarterly revenue performances since it began commercial deliveries of its electric two-wheelers in late 2021.
Challenging Market Conditions
The company attributed the steep decline to a combination of rising competition in the electric scooter segment, regulatory uncertainty surrounding government subsidies, and inventory correction efforts across dealerships.
For the entire financial year, Ola Electric revenue also dipped to ₹4,645 crore in FY25 from ₹5,126 crore in FY24.
Emphasis on Cost Optimisation
In spite of the slump, Ola Electric insisted on its strength areas of enhancing cost-effectiveness and long-term profitability by internal drives like Project Lakshya. The company stated that it has already reduced the auto segment's monthly operating expense to ₹121 crore as of April 2025 and aimed for ₹110 crore by June.
In addition, with Project Lakshya and Project Vistaar, Ola Electric has reduced the EBITDA break-even point for the auto business to below 25,000 units per month.
"With the launch of new electric motorcycles and growing sales of our Gen 3 S1 scooters, the company is targeting EBITDA-level profitability in the auto business in FY26," Ola Electric announced.
Market Response
Post-market hour announcement of the Q4 results of the company. During the day, Ola Electric's share ended 0.60% up at ₹53.24 on the Bombay Stock Exchange (BSE).
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