The EV leader is targeting profitability by FY26, scaling up operations, and navigating challenges with an unwavering commitment to its vision.
Rising Above: Ola Electric’s Ambitious Roadmap to Profitability
In a recent interview, founder Bhavish Aggarwal stated that Ola Electric, one of the newest companies on the Indian stock exchange, aims to turn a profit by the fiscal year 2025–2026 (FY26). However, the goal of the electric vehicle (EV) manufacturer extends beyond financial indicators. Aggarwal asserts that the company’s “strength in technology, manufacturing, and distribution” is essential to its success as it works to spearhead India’s shift to electric vehicles. Aggarwal emphasized that even if the company’s stock price has fluctuated since becoming public, its primary focus is still on long-term growth and creating value for shareholders.
Aggarwal detailed the company’s path toward a sustainable and scalable business model. “We are building the future at Ola Electric. The share price will move up or down, but we are focused on becoming the automotive segment leader of the modern industry,” he said, reflecting his commitment to vision over volatility.
Financial Performance: Revenue Jumps, Losses Narrow
Ola Electric’s financial results for the second quarter of FY25 show a positive trend toward profitability. The company’s revenue for the quarter was ₹1,214 crore, which is a noteworthy 39.1% rise over the ₹873 crore it made during the same period last year. In addition, Ola Electric’s net loss for the quarter decreased marginally from ₹524 crore in Q2 FY24 to ₹495 crore. Furthermore, the business reported a smaller EBITDA loss of ₹379 crore as opposed to ₹435 crore the year before.
The company’s gross margin stood at 20.3% for the quarter, demonstrating improved cost efficiencies and paving the way for future margin expansion. Aggarwal highlighted that this margin growth was a result of ongoing cost reduction efforts and manufacturing improvements.
“Our gross margins continue to improve quarter-on-quarter,” he said. “In Q2 over Q1, our gross margins had a three-point improvement due to cost reductions, but we also reinvested part of that back into growth.” The company expects this trend to continue, supported by a manufacturing approach that emphasizes vertical integration and the upcoming rollout of its Gen 3 platform.
Market Position: Dominating the E-Scooter Space and Beyond
Ola Electric delivered a remarkable 98,619 units in Q2 FY25, representing a 73.6% year-over-year increase in unit sales. Despite intense competition, the company is setting itself up to take a substantial chunk of the Indian electric two-wheeler market, aiming for a 30–35% market share. Although e-scooters have received most of the attention, Aggarwal affirmed Ola’s intentions to add motorcycles and three-wheelers to its EV fleet.
Ola Electric anticipates about one-third of its volume to come from the luxury category and two-thirds from the mainstream market for the foreseeable future, Aggarwal underlined. “That would imply revenue of roughly 50-50,” he clarified, emphasizing the business’s two-pronged strategy to cater to both the upscale and cost-conscious markets.
Overcoming Service Challenges: From Backlogs to Customer Satisfaction
Aggarwal shared that the company has since addressed these service backlogs. “The noise around service that we had seen a month or so ago is behind us now,” he stated confidently. The company has ramped up its service capacity and is now processing over 80% of service requests within a T+1 day framework—meaning scooters brought in for service are handled within the same or following day.
Aggarwal attributed the initial backlog to the company’s rapid growth outpacing its service capacity but assured that infrastructure expansion has now alleviated this issue. “If you bring your scooter today, we will service it today or tomorrow. 80% of such issues are resolved in T+1 days,” he added, emphasizing Ola Electric’s renewed commitment to customer satisfaction.
The Path Ahead: Profitability in Sight Amid Strategic Growth
Aggarwal’s message is clear: Ola Electric’s strategy is to focus on scaling operations, strengthening vertical integration, and investing in growth. By optimizing operations and ensuring efficient capital allocation, Ola Electric aims to balance rapid expansion with fiscal discipline. With the Gen 3 platform set to launch within the next two quarters and a clear target of market leadership, the company’s trajectory toward profitability appears well-aligned.
