Ola Electric Mobility Limited announced its Q2 FY25 financial results, showing substantial revenue growth alongside a reduction in net loss. Despite these improvements, the earnings fell short of estimates, weighed down by provisions for warranty and other operational challenges.
As of 9:15 am the shares were trading 1.29% lower at ₹71.78 on NSE
Key Financial Highlights
- Revenue: The company reported revenue from operations of ₹1,214 crore in Q2 FY25, marking a 39% increase from ₹873 crore in the same quarter last year. However, on a sequential basis, revenue declined from ₹1,644 crore in Q1 FY25, indicating a quarter-over-quarter drop.
- Net Loss: Ola Electric recorded a net loss of ₹495 crore in Q2 FY25, narrowing from ₹524 crore in Q2 FY24. The loss also improved from ₹842 crore in Q1 FY25, reflecting ongoing efforts to control costs and enhance operational efficiency.
Analyst Outlook
Bank of America (BofA) has maintained a ‘Buy’ rating on Ola Electric but reduced its target price to ₹120 from ₹145, suggesting a potential upside of 65% from the current market price of ₹72.67. Key insights from BofA include:
- Gross Margins: Ola Electric has maintained steady gross margin delivery.
- Operational Efforts: The company is working to enhance its service network and reach.
- Future Growth: With rising electric vehicle (EV) adoption, Ola Electric has several new product launches in the pipeline, indicating potential long-term growth.
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