Ola Electric narrows loss as auto unit turns profitable, but sales plunge
India’s leading electric scooter maker Ola Electric reported a narrower quarterly loss on Thursday, buoyed by its first-ever operating profit in the automotive segment — even as overall sales and revenue declined sharply.
The company posted a net loss of 4.18 billion rupees ($47.6 million) for the quarter ending September 30, down from 4.95 billion rupees a year earlier. Its core autos business turned profitable, reporting an EBITDA of 20 million rupees, thanks to a steep 44% drop in total expenses to 8.93 billion rupees. Operational costs at the autos unit fell 46%, News.Az reports, citing Reuters.
Ola said it expects to cut operating costs further to between 3.5 billion and 3.75 billion rupees by the next fiscal quarter — signaling a continued push for profitability ahead of its anticipated IPO.
However, the gains were overshadowed by a 43% decline in revenue to 6.9 billion rupees, as sales volumes nearly halved to 52,666 units. The company’s market share in India’s e-scooter segment has slipped, with rivals Bajaj Auto and TVS Motor catching up through wider distribution networks and competitively priced models.
Entry-level scooters now make up 75% of Ola’s sales, compared with 57% a year earlier — a sign that the brand is leaning more on budget buyers amid rising competition.
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