India’s top electric two–wheeler maker, Ola Electric Mobility said on Thursday that it is targeting profitability in fiscal year 2026 and gross margin improvement.
Earlier in the day, the firm reported a wider quarterly loss, hurt by falling sales, steep discounts and a one-time warranty expense provision.
Ola Electric provided a forecast for the first time ever, with co-founder and CEO Bhavish Aggarwal stating in a post-earnings conference call that the company expects gross margins to improve to 28%–30% in the first quarter of the current fiscal year.
However, he also said revenue will be around 8.5 billion rupees, down from 16.44 billion rupees reported in the same period last year.
Since going public in August 2024, Ola has struggled with slowing sales, regulatory pressure and competition from established two–wheeler makers.
Ola had taken a one-time increase of 2.5 billion rupees on warranty expense provision for its Gen 1 and Gen 2 scooters sold to date in the quarter.
The Bengaluru-based company’s revenue from operations declined 61.8% to 6.11 billion rupees for the March quarter, while total expenses fell 31.6% to 13.06 billion rupees.
Analysts said that Ola‘s average revenue per unit sold declined due to discounts and higher sales of lower-priced vehicles.
Ola‘s vehicle registrations fell more than 52% year-on-year in the quarter. Its entry-level models comprised 69.3% of volumes, higher than 43.1% a year before.
The company said it is exploring a debt raise of up to 17 billion rupees to refinance existing debt repayment obligations.
Earlier in the day, the firm posted a loss of 8.7 billion rupees ($101.8 million) in the quarter ended March 31, compared with a loss of 4.16 billion rupees a year earlier.
Reuters
