Ola Electric Mobility (OLAELEC) Q2 24/25 earnings summary

Executive summary

• Revenue grew 38.5% year-over-year, reaching INR 1,214 crores in Q2 FY25, maintaining market leadership with a 33% share despite increased competition.

• Completed IPO in August 2024, raising INR 5,341 crores (net of expenses) from a fresh issue of shares; equity shares listed on NSE and BSE.

• Distribution network expanded to 780 stores, targeting 2,000 company-owned and 1,000 partner stores by March, aiming for over 3,000 retail points.

• Mass market S1 X portfolio grew 15% quarter-on-quarter, while premium products remain the majority revenue contributor.

• Product roadmap includes 20+ new launches over two years, with Gen 3 platform and motorcycles rolling out from January.

Financial highlights

• Gross margin for Q2 FY25 was 20.6% for the auto segment, up 12 points year-over-year and flat sequentially; overall gross margin was approximately 18.5%.

• Net loss for Q2 FY25 was INR 495 crores, compared to INR 524 crores in Q2 FY24; EBITDA loss for Q2 FY25 was INR 279 crores.

• PLI incentives accounted for about 5% of revenue in Q2, with full portfolio certification expected to increase this in Q3 and Q4.

• One-off expenses included IPO costs, annual event, and appraisals (₹36 crore), plus a warranty provision (₹64 crore, 2.5% of revenue).

• Total assets as of September 30, 2024, stood at INR 12,571 crores, up from INR 7,735 crores as of March 31, 2024.

Outlook and guidance

• Expectation of continuous gross margin improvement each quarter as Gen 3 and cell manufacturing ramp up.

• Targeting a gross margin of 30%+ and mid-teens EBITDA margin at scale, with year-over-year volume growth aimed at 50%.

• CapEx focused on cell project, product launches, and capacity expansion, with funding secured for current plans.

• Management has begun segmental reporting for Automotive and Cell businesses from April 1, 2024, reflecting a focus on both EV and cell manufacturing.