Ola Electric Q3 results: Net loss widens to Rs 564 crore, revenue down 19% YoY

Ola Electric Mobility reported a consolidated net loss of Rs 564 crore for Q3FY25, marking a significant widening from Rs 376 crore in the same period last year. Revenue from operations declined 19.3 per cent year-on-year (YoY) to Rs 1,045 crore from Rs 1,296 crore in Q3FY24, reflecting intense competition and service-related challenges.

Operational performance and EBITDA margins

At the operational level, the company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) loss increased to Rs 460 crore in Q3FY25, compared to a loss of Rs 301 crore in the previous year. Ola Electric attributed this decline to higher marketing and sales expenses during the festive season, network expansion, and supply chain-related inefficiencies. Excluding exceptional costs such as warranty provisions and one-time employee-related expenses, the consolidated EBITDA margin stood at -29.2 per cent in Q3FY25 versus -19.4 pe rcent in Q2FY25.

Festive sales boost but margin pressure remains

Despite a challenging quarter, Ola Electric highlighted a strong October performance driven by festival sales. However, the company acknowledged that overall quarterly results were impacted by stiff competition and service issues. "We’ve fixed the service issues, and with our network expansion, turned the tide on market share and margins," the company stated. In January, Ola Electric reclaimed its market leadership position, with an expected gross margin of approximately 26 per cent, up from 20.4 per cent in Q3FY25.

Stock performance under pressure

Since its listing in August 2024, Ola Electric’s stock has struggled to maintain momentum. The stock debuted at Rs 76 per share on the NSE and Rs 75.99 on the BSE. It touched a record high of Rs 157.53 on August 20, 2024, but has since declined over 56 per cent. The stock hit a record low of Rs 64.68 on January 28, 2025, and was trading 2.5 per cent lower at Rs 70.06 per share on the BSE at 1:45 PM on February 7, 2025. Year-to-date, the stock is down 20 per cent and remains 10 per cent below its IPO price.

Looking ahead

Ola Electric is focusing on operational efficiencies and expanding its distribution network to stabilize margins and regain investor confidence. With continued investments in cost reduction and service enhancements, the company expects a stronger financial performance in the coming quarters.