Bad news for Bhavish Aggarwal as Ola Electric's net loss in Q4 doubles to Rs...; market cap reaches Rs...

Bhavish Aggarwal-led electric vehicle maker Ola Electric reported a steep drop in revenue and a two-fold increase in net losses on a year-on-year (YoY) basis in the fourth quarter (Q4) of FY25. The company announced its Q4 results on Thursday. The market cap of the firm now stands at Rs 22236 crore as of May 29.

Ola Electric Q4 results

The company posted a net loss of Rs 870 crore for the January–March quarter (Q4), up from Rs 416 crore in the same quarter previous fiscal (Q4 FY24), according to its stock exchange filing. Revenue from operations fell significantly to Rs 611 crore in Q4 FY25, marking a 61.8 per cent decline from Rs 1,598 crore a year ago.

This is one of the company's worst quarterly revenue performances since it began commercial deliveries of its electric two-wheelers in late 2021. The drop comes amid rising competition in the electric scooter market, regulatory uncertainty around government subsidies, and inventory correction across dealerships.

For the full year FY25, Ola Electric's revenue also fell to Rs 4,645 crore, down from Rs 5,126 crore in FY24. The company, however, said it is working toward cost efficiency and profitability through its internal cost-cutting initiative, 'Project Lakshya'.

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The company's Q4 results were announced after market hours. Ola Electric's stock closed 0.60 per cent higher at Rs 53.24 on the Bombay Stock Exchange (BSE). Ola Electric also said that through its cost-optimisation plans -- Project Lakshya and Project Vistaar -- it has managed to lower the EBITDA break-even point for its auto segment to under 25,000 units per month. “With the introduction of new electric motorcycles and rising sales of its Gen 3 S1 scooters, the company aims to achieve EBITDA-level profitability in the auto business during FY26,” the electric vehicle maker said in its regulatory filing.

(With inputs from IANS)