Ola Electric close to achieving profitability, says CEO Bhavish Aggarwal
Ola Electric, a major player in India's electric vehicle (EV) space, is moving closer to profitability. The company's founder and CEO, Bhavish Aggarwal, made the revelation during a post-earnings chat with CNBC-TV18. He said they are "building the future at Ola Electric" and stressed their leadership position in the EV space. Aggarwal also noted the company's tech and manufacturing capabilities as its success drivers.
Financial performance and future projections
In the second quarter of FY25, Ola Electric posted a net loss of ₹495 crore, down from ₹524 crore in the same quarter last year. However, the company's revenue jumped significantly by 39.1% year-on-year (YoY) to ₹1,214 crore. The firm also expects its auto business to turn EBITDA positive in the 2025-26 fiscal year. These numbers show progress toward profitability despite losses.
Gross margin and service backlog
Ola Electric's gross margin for the quarter stood at 20.3% with 98,619 units delivered. This marks a whopping 73.6% growth over the same period last year. Aggarwal anticipates further improvement in gross margins in upcoming quarters with cost reduction strategies and manufacturing vertical integration. He also tackled the service backlog issue that triggered over 10,000 customer complaints, assuring it's now a thing of the past with over 80% service requests being resolved within T+1 days.
Market leadership and future plans
Aggarwal highlighted Ola Electric's focus on market leadership and growth investments while staying on the path to profitability. The company targets a market share of around 30-35% and intends to diversify beyond e-scooters into motorbikes and three-wheelers. For the near future, Aggarwal anticipates about one-third of Ola Electric's volumes to be from premium segments and two-thirds from mass segments, suggesting a balanced revenue approach.
