• Q4 vehicle registrations dropped 52% YoY; revenue fell to  Rs 611 crore.
• Auto segment EBITDA margin plunged to -78.6%; consolidated margin at -101.4%.
• Launches electric motorcycle ‘Roadster X’ to tap Tier-3 and rural markets.

Ola Electric, headed by Bhavish Aggarwal, recorded a net loss of  Rs 870 crore during the March 2025 quarter over two times the  Rs 416 crore loss during the previous year's similar period. The sharp drop is an indication of a combination of sliding market demand, inventory stockpiles, and operational challenges, which bore significantly on India's leading electric two-wheeler maker.

Operating revenue plummeted 62% year-on-year to  Rs 611 crore from  Rs 1,598 crore in Q4 FY24. Vehicle registrations fell 52% during the quarter to 56,760 units. Internal delivery numbers were even lower, at 51,375 units, and pointed to piling up of unsold inventory.

The firm's auto business EBITDA margin weakened dramatically, falling to -78.6% from -9.3% last year. Consolidated EBITDA margin was at -101.4% for the quarter, which reflects a weakening of operating efficiency and higher costs of provisioning.

But Ola Electric saw some marginal expansion in gross margin, which increased to 19.2%, propelled by the higher contribution from its Gen-3 platform. These newer-generation scooters provide 20% more power and range at 11% lower costs than their Gen-2 predecessors, which are able to take some margin strain off.

Going forward, the firm is looking for further expansion in margins expecing a 10-percentage-point jump in Q1 FY26 and aiming at a 35% gross margin by Q2 FY26, supported by gains from the government's Production-Linked Incentive (PLI) scheme.

Entry-level scooters accounted for almost 70% of Q4 sales, compared with 43% a year ago, indicating an unmistakable consumer preference for lower-priced products. Ola said that slower-than-projected industry expansion and internal operational problems led to a decline in market share.

Nevertheless, the company continues to invest in building scale and gaining efficiency in FY26, with a view to breaking even on profitability. In FY25, which is the full financial year, Ola Electric dispatched 3.59 lakh units up from 3.29 lakh in FY24 and led the electric two-wheeler segment. Annual adjusted revenue was  Rs 4,665 crore, with a consolidated EBITDA margin of -34.6%.

At end-March, Ola Electric had  Rs 4,000 crore in gross cash and plans to raise as much as  Rs 1,700 crore in non-dilutive debt to retire existing obligations.

To diversify from urban areas, the company recently launched its first electric motorcycle, the Roadster X, focused on rural and Tier-3 markets via its direct-to-customer (D2C) network, which now comprises 4,000 retail touchpoints, half of them in small towns.

Since India's motorcycle segment is almost twice the size of the scooter segment, Ola views this new product category as a major growth driver for EV penetration. The company anticipates a Q1 FY26 recovery with expected revenue in the  Rs 800-850 crore range and a contracted auto EBITDA margin of -10%.