Ola Electric Mobility (OLAELEC) Q3 24/25 earnings summary

Executive summary

• EV scooter penetration rose from 12%-13% to 17%-20% year-over-year, with expectations to reach 25%-30% by year-end, despite short-term blips from subsidy reductions.

• Motorcycle EV adoption is expected to accelerate faster than scooters, with strong customer interest and new product launches lined up for the year.

• Distribution network expanded from 750 to 4,000 stores, now covering nearly every district and taluk in India, supporting future volume growth.

• Report covers unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, following the company's IPO and listing in August 2024.

• Ola Electric operates in two reportable segments: Automotive and Cell, with segmental results disclosed for the first time from April 2024.

Financial highlights

• Gross margin improved to 25%, up from 18%-19% in previous quarters, driven by BOM cost reductions and less discounting.

• Q3 CapEx was around INR 300 crore, with INR 60-70 crore in R&D/intangibles.

• Recognized INR 120 crore of PLI incentives in the quarter.

• Consolidated revenue from operations for Q3 FY25 was INR 1,045 crore, down from INR 1,214 crore in Q2 FY25 and INR 1,296 crore in Q3 FY24.

• Consolidated net loss for Q3 FY25 stood at INR 564 crore, compared to INR 495 crore in Q2 FY25 and INR 376 crore in Q3 FY24.

Outlook and guidance

• EV scooter market share targeted at 30%-40% as distribution matures and Gen 3 products ramp up.

• Motorcycle volumes and revenues expected to materially reflect from Q1 next year.

• Gigafactory capacity to reach 5 GWh by early next year, supporting both vehicle and battery storage growth.

• CapEx for cell expansion to 5 GWh estimated at INR 500-1,000 crore, with additional auto factory expansion planned.

• Management believes the CCPA notice does not have a material impact on financial results and continues to provide required information.