Ola Electric Q2 FY25 Results: ₹495 Crore Loss, 74% Delivery Growth, and Major Expansion Ahead

Ola Electric, a leading electric two-wheeler manufacturer, reported a consolidated net loss of ₹495 crore for the September 2024 quarter (Q2 FY25), as announced on November 8. This loss narrowed slightly compared to the ₹524 crore loss recorded in the same quarter last year but increased from the ₹347 crore loss in the June 2024 quarter.

Revenue Growth Driven by Strong Sales

The company’s revenue from operations for Q2 FY25 rose to ₹1,214 crore, marking a 39% increase from ₹873 crore in the previous year. This growth is largely attributed to higher delivery volumes, especially within Ola’s mass-market scooter lineup.

CEO Addresses Service Network and Customer Complaints

During an investor earnings call, Ola Electric CEO Bhavish Aggarwal acknowledged challenges in service capacity due to rapid sales expansion outpacing service network growth. Ola had faced over 10,000 customer complaints, which brought government scrutiny, but Aggarwal confirmed that the backlog of complaints had been addressed. The company now aims to scale up its service capabilities alongside sales by expanding its store network from 782 locations in September 2024 to 2,000 by March 2025.

Strong Delivery Growth and Mass-Market Focus

Ola delivered 98,619 units in Q2 FY25, up 73.6% from 56,813 units in the same period last year. The company has boosted deliveries within its S1 X scooter series, priced under ₹1 lakh, which saw 15% quarter-on-quarter growth. Although these affordable models are driving overall growth, the premium lineup remains a significant revenue source.

Rising Electric Two-Wheeler Adoption and Regional Expansion

Electric two-wheeler penetration rose from 5.8% in June to 7.5% in September 2024. In the scooter category, this growth was more pronounced, increasing from 16.1% to 21.4%. Aggarwal highlighted strong uptake in states like Uttar Pradesh, Rajasthan, Karnataka, and Maharashtra, where electric scooters have achieved a penetration rate of 25% to 45%. Ola Electric aims to strengthen its presence in North India, leveraging the popularity of its mass-market models.

Upcoming Product Launches

Ola plans to launch its Gen 3 platform in January 2025, offering enhanced features and performance. The company is also set to introduce the first motorcycle from its Roadster series in the last quarter of FY25, broadening its portfolio in the electric vehicle market.

As of 10:32 AM on November 11, 2024, Ola Electric’s share price traded at ₹71.70 on the NSE.

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