Ola Electric eyes Ebitda breakeven in automotive by Q1FY26; stock up 3%

Ola Electric share rose after the company's announcement that it expects Ebitda breakeven in its Automotive segment by Q1FY26, with full financial benefits from recent initiatives expected by April'25

Ola Electric share price: Electric two-wheeler maker Ola Electric Mobility (Ola Electric) share price rose as much as 3.28 per cent to hit an intraday high of ₹52.58 on Wednesday, March 12, 2025. 

 

The surge in share price followed the company’s announcement that it expects to achieve earnings before interest, tax, depreciation and amortisation (Ebitda) breakeven in its Automotive segment by the first quarter of FY26, with the financial benefits of recent initiatives expected to fully materialise by April 2025.

 

In an exchange filing, Ola Electric said, “We would like to inform you that, Ola Electric Mobility Limited (the Company) has successfully finished implementation of its Network Transformation and Opex Reduction Programme, a Company-wide initiative launched in November 2024 with an aim to reduce cost and improve customer experience. This initiative has delivered a sustainable cost reduction of ₹90 crore per month.”

 

 

The company explained that the programme included key changes such as the transformation of the distribution network, shutting down regional warehouses, and shipping vehicles, spare parts, and accessories directly from the factory to stores. 

 

Additionally, processes like vehicle registration were automated, and productivity was enhanced across the sales and service network.

 

As a result of these efforts, Ola Electric reduced average vehicle inventory from about 35 days to 20 days, while also cutting down delivery time for customers from 12 days to just 3-4 days. 

 

The transformation of the vehicle registration process is also nearing completion, and the company has seen a notable increase in daily registrations, now exceeding 800 per day—surpassing the average daily sales for January-February 2025.

 

With the successful implementation of all elements of the Network Transformation and Opex Reduction Programme, Ola Electric has met its commitment to operational excellence, financial discipline, and an improved customer experience. Thus, the company is now well-placed for long-term profitable growth and expects to achieve Ebitda breakeven in the Automotive segment by Q1FY26.

 

Financially, Olla Electric posted a net loss of ₹564 crore in the December quarter of financial year 2025 (Q3FY25), from a loss of ₹376 crore in the same quarter last year (Q3FY24).

 

The company’s revenue from operations dropped 19.4 per cent year-on-year (Y-o-Y) to ₹1,045 crore, as against ₹1,296 crore in Q3FY24. 

 

Kotak Institutional Equity, in its report dated February 8, said Ola Electric’s Q3FY25 Ebitda loss came in much above our expectations, driven by higher warranty provision, employee rationalisation and higher discounts. 

 

“We expect Ebitda losses to be lower from FY2026E, driven by operating leverage and a shift to the Gen-3 platform (lower BOM costs). As the company has resolved servicing-related issues, we expect the volume momentum to pick up in the coming quarters. However, we believe the current valuations are not adequately factoring in the risks pertaining to an increase in competitive intensity and execution capabilities. ‘Reduce’ stays,” analysts at Kotak Institutional Equities said.

 

About Ola Electric

 

Ola Electric, a pure EV player in India, is developing vertically integrated technology and production capabilities for EVs and EV components, including batteries.

 

The Bhavish Aggarwal-led company, which has approximately a 35 per cent market share in India's electric two-wheeler market in FY24, is focused on developing vertically integrated technology and production capabilities for EVs and EV components, including cells. 

 

The market capitalisation of Ola Electric is ₹22,781.94 crore, according to BSE. The company falls under the BSE IPO category.

 

At 11:45 AM, Ola Electric shares were trading 1.45 per cent higher at ₹51.65. In comparison, BSE Sensex was trading 0.60 per cent lower at 73,657.26 levels.