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On a sequential basis, the loss widened from Rs 347 crore reported in the preceding June quarter.
EBITDA losses for the quarter stood at Rs 223 crore, which is higher compared with Rs 321 crore loss reported in the last year period. However, on a quarter-on-quarter basis, operating losses widened from Rs 65 crore posted in Q1FY25.
The company said it has maintained its market leadership with 33% market share during Q2FY25 despite aggressive competitive action.
“We are expanding distribution to 2,000 stores by March 2025 from the current 782 in addition to expanding our Network Partner Program,” Ola said in a release.
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EBITDA margins during the second quarter were reported at-28.4%, as compared to -46% in the year-ago quarter.Ola said the auto segment gross margins consistently improved despite subsidy reduction over the last year to 20.6% in Q2FY25 due to BOM cost reduction driven by its Gen 2 platform.
Over Q1FY25, the company saw a 3% improvement in auto gross margins, led by a reduction in BOM cost, offset by a 1% investment in growth and a 1.5% impact of partial accrual of PLI due to a difference in timing.
“Due to our platform approach our gross margins across mass and premium portfolios are broadly in the same range. We should see continued improvements over the next few quarters with ramp up of Gen 3 and vertical integration of our in-house cell,” Ola said.
Deliveries grew 74% YoY to 98,619 units in Q2 FY25 as against 56813 units in the last year period.
Ola said it continues to focus on the long-term strategy of broadening its product portfolio, expanding distribution and service infrastructure, and leading technology innovation and vertical integration to drive product differentiation and cost advantage.
Addressing the service issues, the company said it has faced capacity issues at its service centres over the last couple of months because its service capacity growth lagged the sales volume growth over the 2-3 quarters.
The company claims to have resolved almost all of this backlog and now 80% of service requests are being serviced in T+1 days.
The company said its focus on technology and vertical integration has a roadmap to take steady-state margins to above 30% even after incentives fall away. And since Gen 3 ramp up is starting in January, it is expecting consistent improvement in gross margins over next few quarters.
“In addition to this, our cost efficient D2C model and our focus on keeping operating expenses constant is delivering strong operating leverage as we scale with increasing distribution and product portfolio, leading to a strong positive impact on EBITDA margins over the near term,” the company said.
On Friday, Ola Electric shares closed 2.5% lower at Rs 72.67 on the NSE.
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