Ola Electric Narrows Loss Amid Cost Cuts

Ola Electric's financial performance showed improvement in the second quarter, with its consolidated loss narrowing to ₹3.62 billion. This positive shift was driven by strategic cost-saving initiatives and operational restructuring undertaken by the Bhavish Aggarwal-led company. Measures included workforce adjustments, reduced warranty expenses, and tighter working capital management.

These efforts led to a notable 28.4% decrease in second-quarter expenses, which amounted to ₹6.39 billion. The company's consolidated gross margin was reported at 29.93%. However, Ola Electric anticipates a reduction in gross margin in the upcoming quarters due to its expanding dealer network, though operating margins are expected to improve.

The electric vehicle maker continues to face sales challenges amid fierce competition from Ather Energy and established automakers. In the second quarter, sales stood at 41,651 units, a decrease from the 51,775 units sold in the same period last year, resulting in a revenue fall of approximately 39% to ₹4.21 billion. Ola Electric stated that supply, rather than demand, is currently limiting its output.