Ola Electric Reports 35% Revenue Growth in Q1 2025 Despite Widening Losses

Ola Electric Mobility Limited reported a 35% increase in revenue to Rs 828 crores for the quarter ended June 30, 2025, compared to Rs 611 crores in the previous quarter. However, the company's net loss widened to Rs 428 crores from Rs 347 crores in the same period last year.

The Bengaluru-based electric vehicle manufacturer's total income, including other income, reached Rs 896 crores for the quarter, up from Rs 728 crores in the previous quarter. The company's automotive segment contributed Rs 826 crores to the total revenue, while the cell segment added Rs 3 crores.

Operating expenses increased to Rs 1,065 crores from Rs 1,306 crores in the previous quarter. The company's cost of materials consumed stood at Rs 441 crores, while employee benefits expense was Rs 89 crores for the quarter.

The company's earnings per share deteriorated to negative Rs 0.97 from negative Rs 0.95 in the corresponding quarter of the previous year. The paid-up equity share capital remained at Rs 4,411 crores with a face value of Rs 10 per share.

Ola Electric reported negative cash flow from operations of Rs 143 crores for the quarter, primarily due to continued operating losses and lower-than-expected growth in sales volume. The company's management has assessed its going concern assumption and believes it will continue operations based on available cash balances, expected future operating cash flows, and credit facilities.

The company's board of directors approved a resolution in May 2025 to raise funds up to Rs 1,700 crores through non-convertible debentures and other debt securities. As of June 30, 2025, the company had Rs 2,594 crores in unutilized IPO proceeds, with Rs 2,563 crores temporarily invested in fixed deposits.

Ola Electric completed its initial public offering in August 2024, raising Rs 5,275 crores through fresh issue of shares. The company's shares are listed on the National Stock Exchange and BSE Limited.

The company has been responding to inquiries from the Central Consumer Protection Authority regarding consumer grievances and from stock exchanges regarding variance in vehicle sales data. Management does not expect material impact from these communications on financial results.

During the quarter, the company continued its segment-wise reporting structure implemented in April 2024, with automotive and cell segments being reviewed separately by the chief operating decision maker. The automotive segment reported a loss of Rs 461 crores before unallocated costs, while the cell segment recorded a loss of Rs 19 crores.

For the full year ended March 31, 2025, Ola Electric had reported revenue of Rs 4,514 crores with a net loss of Rs 2,276 crores.