Ola Electric, which just went public in early August, released its first financial results after IPO, with gross margin improving despite larger losses.
According to a corporate filing with Indian exchanges, Ola Electric, the largest electric two-wheeler (E2W) manufacturer with a vertically integrated business model that includes cell manufacturing, reported a 34.32% year-on-year increase in total income, reaching INR 17.18 billion (US$204 million) in the first quarter of fiscal 2024 (April 2024 to March 2025). The adjusted gross margin increased by pp8.73 from a year ago to 21.94%. The company's EBITDA margin improved by pp6.60 to -7.63%. Its net loss grew to INR3.47 billion in the quarter from INR2.67 billion in the corresponding period a year ago.
The automotive sector was the primary contributor to Ola Electric's revenue for the quarter, generating INR 17.22 billion. The cell manufacturing segment contributed INR 50 million in revenue but incurred a loss of INR 370 million.
Ola Electric said it shipped 125,198 E2Ws in the quarter, up 77.4% year-on-year, and its share in the market grew from 11% in the second quarter of 2023 to 49% over the past quarter.
According to NDTV, Ola Electric announced that it will begin using its electric battery cells in the first quarter of 2026. Production of these cells started in March 2024, with approximately 30,000 cells manufactured to date. Additionally, the cells received BIS certification in May 2024.
Ola Electric financial summary (INRb) | |||||
Financial | 1QFY24 | 2QFY24 | 3QFY24 | 4QFY24 | 1QFY25 |
Total income | 12.79 | 9.22 | 13.71 | 16.71 | 17.18 |
EBITDA | -1.82 | -3.87 | -2.26 | -2.39 | -1.31 |
Profit | -2.67 | -5.27 | -3.76 | -4.16 | -3.47 |
Source: August 2024
