Ola Electric, India’s leading electric two-wheeler manufacturer, reported a significant decline in its financial performance for the fourth quarter of the fiscal year ending March 31, 2025. The company’s net losses more than doubled to ₹870 crore, compared to ₹416 crore in the same quarter of the previous year. Additionally, revenue from operations plummeted by 62% to ₹611 crore, reflecting a challenging quarter marked by declining sales and intensified competition. (The Economic Times)

Falling sales and aggressive discounting to offset increased competition from more established rivals like Bajaj Auto and TVS Motor were blamed for the dramatic decrease in revenue. The number of vehicles registered decreased by more than 52% year over year to 56,760 units, with entry-level models making up 69.3% of the total volume, up from 43.1% the year before. Discounts and a move toward less expensive cars caused Ola’s average income per unit sold to drop, according to analysts.

Ola Electric implemented drastic cost-cutting measures in response to growing losses, which included firing more than 1,000 staff members and contract workers from a variety of divisions, including customer service, fulfillment, procurement, and charging infrastructure. The business said that in order to increase profits, save expenses, and improve customer satisfaction, it had reorganized and automated front-end processes.

Ola Electric is confident that it would turn a profit in the fiscal year 2026 despite the financial difficulties, pointing to increases in gross margins. In order to improve its financial standing and refinance its current debt, the company is looking into ways to raise up to ₹1,700 crore. 

Due to regulatory obstacles and a declining market share, Ola Electric’s financial performance has been strained since its initial public offering (IPO) in August 2024. The business is still navigating a competitive environment as traditional two-wheeler manufacturers are making a strong push into the electric vehicle market. Regaining market share and achieving long-term profitability will need Ola to strategically concentrate on cost reduction and operational effectiveness.

Also read: Snitch Raises ₹279 Cr in Series B, Hits ₹2,500 Cr Valuation