Ola Electric Q1 Results are out: Revenue up by 32% But a Net loss of Rs.347 Crore, Click here to read about the full article:

Ola Electric has disclosed its Q1 results for the fiscal year 2024-25, showing a complex picture. The firm reported a net loss of ₹347 crore for the quarter ending June 30, 2024, marking a substantial increase from the ₹267 crore loss reported in the corresponding period the previous year. This increased loss is due to several factors, including price reductions intended to stimulate demand following the government's cut in electric vehicle incentives.

In spite of the growing losses, Ola Electric experienced a significant revenue increase. The company's revenue for Q1 FY25 surged by 48.63% year-over-year to ₹1,718 crore. This surge was propelled by robust demand for its electric two-wheelers, especially the S1 series, which achieved a record delivery of 125,198 units in the quarter. The company's production scale-up and supply chain optimization efforts have also played a role in this revenue boost.

The EBITDA margin for Ola Electric's automotive division has shown considerable improvement, nearing the breakeven point. The margin has risen to -1.97% from -8.29% in the same quarter of the previous year. This margin enhancement is a testament to the company's continuous drive to lower manufacturing costs and improve operational efficiency. Additionally, the adjusted gross margin witnessed a significant rise, reaching 21.94% of revenue, a jump from 13.21% in the prior year.

The company's recent IPO stands as a notable achievement. Ola Electric garnered ₹6,145 crore from its initial public offering, setting the share price between ₹72 and ₹76. The IPO proceeds are allocated to various strategic endeavors, including the expansion of cell manufacturing capabilities, research and development, debt reduction, and organic growth initiatives. The stock has performed well post-listing, indicating strong investor confidence in the company's future.

Looking forward, Ola Electric is poised to unveil its electric motorcycle range in both mass and premium segments during its annual flagship event.