Ola Electric reports Q4 loss to Rs 870 crore, eyes profitability in FY26 as gross margins improve

Ola Electric on Thursday reported a consolidated net loss of Rs 870 crore for the fourth quarter ended March 31, 2025, while reaffirming its target to achieve profitability in the ongoing fiscal.The company had posted a net loss of Rs 416 crore during the same quarter of the previous financial year, PTI reported.Revenue from operations in Q4 FY25 declined to Rs 611 crore from Rs 1,598 crore in the year-ago period, Ola Electric said in a regulatory filing.For the full financial year FY25, the company reported a net loss of Rs 2,276 crore, compared to Rs 1,584 crore in FY24. Annual revenue from operations also slipped to Rs 4,514 crore, down from Rs 5,010 crore in the preceding year.Ola Electric said it is aiming for profitability in FY26. “FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability,” it said.The company reported a 38 per cent year-on-year improvement in gross margins in FY25, and noted that the first quarter of FY26 saw an additional improvement of 10 percentage points over Q4 FY25.Despite the financial loss, Ola Electric maintained its market leadership position, delivering 3,59,221 units in FY25, up from 3,29,549 units in FY24, supported by strong demand for its Gen 3 S1 scooter portfolio. This helped the company capture a 30 per cent market share.Ola said it is focused on cost efficiency and profitability through its ongoing Project Lakshya initiative. It had earlier set a target operating cost structure of Rs 110 crore for its auto segment. As of April 2025, costs were trending at Rs 121 crore, with the company confident of reaching the Rs 110 crore target by June 2025.Through initiatives like Project Lakshya and Project Vistaar, Ola Electric has brought down its auto segment EBITDA break-even point to below 25,000 units per month.“The lower break-even threshold alongside increasing revenue through industry growth, increasing S1 market share, and introduction of motorcycles enables the company to target Auto segment EBITDA profitability through FY26,” it said.The company is also ramping up production at its manufacturing facility, with Bharat Cell output improving. The cells are undergoing rigorous testing for performance, lifecycle, and safety, with phased commercialization expected in the next few months.April and May 2025 have shown early signs of structural improvements translating into business momentum, Ola said. These include higher gross margins (excluding PLI), reduced operating expenses, better monetisation via add-ons, Gen 3 scooter sales being over twice that of Gen 2, and strong demand for its Roadster motorcycles.Ola Electric shares closed 0.6 per cent higher at Rs 53.24 apiece on the BSE on Thursday.