SUMMARY
- Ola Electric saw its operating income drop by 26% QoQ to Rs 1,214 crore in Q2 FY25.
- The company’s total expenses for the quarter were Rs 1,593 crore.
- The electric two-wheeler manufacturer reported a net loss of Rs 495 crore in Q2 FY25.
Ola Electric saw its operating income drop by 26% to Rs 1,214 crore in Q2 FY25 from Rs 1,644 crore in Q1 FY25.
The electric two-wheeler manufacturer saw a 39% YoY increase in its revenue from Rs 873 crore in Q2 FY24. In a letter to shareholders, the company pointed to a 73.6% jump in deliveries, which amounted to 98,619 units in Q2 FY25 as the main reason for this growth.
The Bhavish Aggarwal-led company’s automotive division generated a revenue of Rs 1,215 crore, with the cell segment contributing Rs 1 crore. Additionally, the company earned Rs 100 crore from other sources, bringing its total revenue for the quarter to Rs 1,314 crore.
The biggest expense for the company was the cost of materials, which increased by 20.3% to Rs 989 crore from Rs 822 crore in Q2 FY24. However, the cost of materials fell by 26.25% from Rs 1,341 crore in Q1 FY25.
The EV major spent Rs 139 crore on employee benefits, with other expenses, including operational and administrative costs, totaling Rs 465 crore. The company’s total expenses for the quarter were Rs 1,593 crore, marking a 21.8% increase from Rs 1,308 crore in Q2 FY24. The total expenses decreased by 13.8% from Rs 1,849 crore in the first quarter of the ongoing fiscal year.
Ola Electric reported a net loss of Rs 495 crore, up 42.65% from Rs 347 crore in the preceding quarter. The losses were down 5.5% YoY from Rs 524 crore in Q2 FY24.
Ola Electric’s closest competitor, Ather, reported Rs 339 crore in revenue with a net loss of Rs 183 crore in Q1 FY25. The results for the second quarter are yet to be announced. The Tarun Mehta-led company also submitted its draft IPO documents in September.
Ola Electric’s sales picked up during the festive season in October after seeing consecutive drop in market share. The company sold 41,605 units in October, which helped its market share increase to 30% in the last month from 27% in September. However, this figure is still lower than the company’s peak market shares of 32% in August, 39% in July, and 49% in June.
