Ola Electric Narrows Q2 Loss as Automotive Unit Turns Profitable for the First Time
Bengaluru, India – Ola Electric (OLAE.NS) reported a narrower consolidated loss for the second quarter, driven by its core automotive business turning profitable for the first time. The electric two-wheeler maker posted a net loss of ₹4.18 billion ($47.56 million) for the quarter ended September 30, compared to ₹4.95 billion a year earlier. The company’s automotive division achieved a positive EBITDA of ₹20 million, marking a key milestone in its operational turnaround.
Total expenses dropped sharply by 44% to ₹8.93 billion, aided by a 46% reduction in operational costs within its autos unit. Ola Electric said it plans to further cut operational expenditure to between ₹3.50 billion and ₹3.75 billion by the first quarter of the next fiscal year, down from ₹4.16 billion in the September quarter.
However, the company’s sales volumes nearly halved to 52,666 units, leading to a 43% decline in revenue to ₹6.90 billion. Entry-level models accounted for about 75% of total sales, up from 57% a year earlier. Ola Electric’s market share has slipped significantly as competitors like Bajaj Auto and TVS Motor expand their presence with comparable electric scooter offerings.
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