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Ola Electric Sees Strong Annual Revenue Growth Despite Quarterly Dip, Market Share Rebounds in October

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Ola Electric, the electric two-wheeler manufacturer, saw a 26% quarter-on-quarter dip in revenue, reaching Rs 1,214 crore in Q2 FY25 compared to Rs 1,644 crore in Q1 FY25. However, year-on-year, the company experienced a robust 39% growth from Rs 873 crore in Q2 FY24, attributed to a 73.6% increase in deliveries, totaling 98,619 units.

The automotive division was the major revenue driver with Rs 1,215 crore, while the cell segment added Rs 1 crore, and additional income of Rs 100 crore brought the total to Rs 1,314 crore for Q2 FY25.

Costs were significant, with materials being the highest expense, reaching Rs 989 crore—up 20.3% from Rs 822 crore in Q2 FY24, though down 26.25% sequentially from Rs 1,341 crore in Q1 FY25. Employee benefits amounted to Rs 139 crore, while other operational and administrative expenses contributed Rs 465 crore, bringing total expenses to Rs 1,593 crore for Q2 FY25—a 21.8% year-on-year increase, though a 13.8% decrease from Q1 FY25.

The net loss climbed to Rs 495 crore, marking a 42.65% rise from Rs 347 crore in Q1 FY25, though this is a slight improvement from the Rs 524 crore loss reported in Q2 FY24.

In comparison, Ola Electric’s competitor, Ather, recorded Rs 339 crore in revenue and a net loss of Rs 183 crore for Q1 FY25. Ather, led by Tarun Mehta, has filed draft IPO papers but has yet to release Q2 results.

October showed positive momentum for Ola Electric, with sales jumping to 41,605 units, increasing its market share to 30% from September’s 27%, though still below previous highs of 32% in August and 49% in June.

By November 8, Ola Electric’s shares were trading at Rs 72.72, reflecting a nearly 54% drop from their mid-August peak of Rs 157.53.

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