Ola Electric’s Q3 loss widens to Rs 564 crore amid revenue decline

BENGALURU: Ola Electric Mobility’s net loss widened to Rs 564 crore for the quarter ended December 31, from Rs 376 crore in the same period a year ago. The company’s revenue from operations stood at Rs 1,045 crore, declining 19% from Rs 1,296 crore in the corresponding quarter last year.
Founder managing director Bhavish Aggarwal told analysts that the company’s warranty and service related costs were accounted as a one time exceptional cost in the latest quarter and that the same is anticipated in Q4 as well.
“This is largely linked to the service backlogs we had. It is not all because of warranty, part of it is also no-questions-asked-goodwill that we did, given that we had a bad issue on service,” he said.
The electric vehicle (EV) manufacturer’s total expenses for the quarter were Rs 1,505 crore, down from Rs 1,597 crore in the year-ago period.
Despite the losses, the company maintained its leadership position in the electric two-wheeler segment with a 25.5% market share in the third quarter, according to Vahan data. Ola Electric delivered 84,029 vehicles in the quarter, slightly lower than the 86,775 units delivered in the same period last year.
The company expanded its distribution network to over 4,000 touchpoints by end of December, up from 784 in September. It also introduced new models.
Ola Electric said its path to profitability would be driven by gross margin improvements, operating cost optimisation, and leveraging its expanding product portfolio. The company also continues to invest in its battery cell technology, with its in-house 4680 Bharat Cell undergoing module-level testing ahead of expected commercialisation in the next fiscal year.