Ola Electric's Q3 loss widens to ₹564cr, revenue down 19%
What's the story
Ola Electric has reported a massive jump in its net loss for the third quarter of FY25. The company's net loss jumped to ₹564 crore, up from ₹376 crore in the same quarter last year. In the previous quarter ending September 2024, Ola Electric had faced a net loss of ₹495 crore. There was also a decline in its operational revenue for Q3 FY25. Revenue declined by 19.36% to ₹1,045 crore from ₹1,296 crore YoY.
Revenue decline
EBITDA loss widens
At the operational level, the Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) loss for the December quarter widened to ₹460 crore from a loss of ₹301 crore in the same quarter the last fiscal year.
Performance factors
Q3 performance impacted by competition, service issues
Ola Electric admitted its Q3 performance was impacted by fierce competition and service issues. The company said, "October saw strong performance fueled by festival sales, however the overall quarter was weak due to high competitive intensity and service challenges." Despite these challenges, Ola Electric has been able to increase its automotive gross margin by 20 basis points (bps) QoQ to 20.8% in Q3 FY25.
Stock trends
Stock performance and market position
Ola Electric's shares debuted on Indian stock exchanges in August 2024. However, the EV stock is currently trading below its IPO price. The company's share price has declined 13% in a month and 20% year to date. At ₹70.10, the stock is down 10% from its issue price and over 56% lower from its record high level.