Newly listed Ola Electric’s Q1 loss widens to ₹347 crore; revenue grows 32%

Ola Electric Mobility, which made its stock market debut on August 9, released its June quarter earnings report today, posting a consolidated net loss of ₹347 crore in Q1 FY25. The e-scooter maker had posted a consolidated loss of ₹267 crore in the quarter ended June 30, 2023. Sequentially, the loss was down by 16% from ₹416 crore in March quarter of 2024.

Ahead of Q1 results, shares of Ola Electric ended 2.38% higher at ₹110.64 on the BSE, with a market capitalisation (m-cap) of ₹48,801.4 crore. The auto stock has risen 45.6% in the four sessions against its initial public offering (IPO) price of ₹76, while its m-cap surged by ₹15,279 crore from ₹33,522.31 crore ahead of listing.

For the June quarter of FY25, the Bhavish Aggarwal-led company posted “highest-ever” quarterly consolidated revenue from operations at ₹1,644 crore, up 32% from ₹1,243 crore in Q1 FY24, Ola says in a BSE filing. On a quarterly basis, the revenue slipped by 2.9% from ₹1,598 crore in Q4 FY24.

“The company has registered its highest ever quarterly revenue during the quarter ended 30th June 2024,” the release notes.

As per the release, the June quarter witnessed the “highest-ever” deliveries of vehicles at 1,25,198 units as against 70,575 units delivered in the same period last year. “The company ramped up deliveries of its mass market scooter portfolio (S1 X portfolio) during the quarter which helped accelerate growth. The existing product portfolio (S1 Pro, S1 Air, S1 X+) also saw strong demand which continued growth momentum throughout the quarter.”

As per the regulatory filing, automotive segment (E2W) posted improvement in EBITDA margin at (1.97)%, up by 632 basis points from (8.29)% in Q1 FY24.

The adjusted gross margin stood at ₹377 crore for the quarter ended June 30, 2024, while margin stood at 21.94% of revenue, up 873 bps YoY. “The increasing scale of operations has benefited the company in the form of lower manufacturing costs and supply chain optimizations. These benefits of scale are further amplified by the company’s scalable platform-based product development and manufacturing technology that results in high degrees of commonality across its products,” the release read.

The shares of Ola Electric were listed on domestic bourses last Friday after it successfully raised ₹6,146 crore via IPO, which was the second-largest after LIC of India's ₹21,000 crore issue in May 2022. The issue comprised a fresh issue of ₹5,500 crore and an offer for sale (OFS) of ₹645.96 crore by promoters and existing shareholders.

Ola Electric Mobility, a wholly-owned subsidiary of ANI Technologies - the parent entity of Ola Cabs, intends to use capital raised from fresh equities for capital expenditure to be incurred by the subsidiary, OCT for the Ola Gigafactory project and repayment of indebtedness incurred by subsidiary, OET. A part of the capital will be used for investment into research and product development, funding organic growth initiatives, and general corporate purposes.

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