Ola Electric disclosed its first-quarter results on Friday, noting a reduction in losses. This improvement was made possible by increased sales of electric scooters and lower operating expenses following the restructuring conducted last year.
For the reporting period ending June 30, the company recorded a net loss of 336 crore rupees (equivalent to 35.29 million US dollars), compared to a loss of 428 crore rupees the previous year.
Key Results Details
These financial figures come against a backdrop of sustained demand for electric two-wheelers in India. Analysts predict that this segment will continue to increase its share in the broader two-wheeler transport market.
Ola reported that orders nearly doubled compared to the previous quarter, reaching approximately 44,000 units, while deliveries grew to about 39,200 units. This contributed to a 72% increase in revenue for the automotive division, which is the company's largest business, compared to the previous quarter.
Furthermore, consolidated operating expenses decreased by 22% relative to the last quarter, as the company continues to implement cost-cutting measures introduced during last year's restructuring.
Nevertheless, operating revenue decreased by approximately 45% compared to the same period last year, amounting to 4.55 billion rupees. Despite rising prices for copper, aluminum, lithium, and plastic, Ola maintained a gross margin of 30.5%, stating that further sales growth and improved cost efficiency should contribute to better profitability.
The company noted in its stock exchange filing that geopolitical tensions in the Middle East led to greater volatility in fuel prices, which increased the appeal of electric scooters for consumers looking to reduce running costs.
Analysts expect sustained demand for electric scooters. Nomura forecasts that the Indian two-wheeler industry will grow by 8.5% in the 2027 fiscal year, while Citi expects that higher raw material and production costs will continue to pressure auto manufacturers' margins in the June quarter, although the worst phase of cost inflation may be behind them.