Ola Electric’s Downfall Continues, Revenue Slips Below Ather Energy

The slew of controversies that riddled Ola Electric last year seems to have left an indelible effect in its overall operations and revenue returns. The brand registered a net loss of ₹2,276 crore in FY 25, with revenue from operations (RFO) dropping by 9.9 per cent to ₹4,514 crore. This was mainly due to the fact that in Q4 FY25, its RFO crashed by a whopping 41.5 per cent to ₹611 crore. Compared to that, Ather Energy, which recently went public, earned ₹676.1 crore in the same quarter. Thus, it was the first time that Ola Electric earned less than its fellow Bengaluru-based EV company. 

Interestingly, Ola’s downfall comes on the back of improved sales. In FY25, it delivered 3,59,221 new electric scooters, compared to 3,29,549 units it retailed in FY24. This growth was mainly driven by the Ola S1 X, which registered a massive 269.46 per cent sales growth. 

However, Ola’s situation has not improved at the start of FY26 as well. Despite registering sales of 15,221 new vehicles in the first 26 days of May, it’s still 60 per cent less than what it registered in the same period last year. Due to this plunge, Ola’s market share further dropped from 22.1 per cent in April 2024 to 20 per cent last month this year. Compared to that, both TVS and Bajaj market shares have gone up to 25 and 22.6 per cent, respectively, for this period. 

Moving forward, the company will focus on scaling revenue and operating leverage via its Project Vistaar and Project Lakshya. The company has already started to register its new vehicles in-house, which Ola claims has further helped bring down the delivery timeline. At the same time, it will be banking a lot on the latest Gen 3 S1 scooters and its debut electric motorcycles, the Roadster X, deliveries for which just commenced. The brand has also worked on expanding its dealership network across the country, which now stands at 4,000+. Coupled with the fact that its proprietary Bharat Cell production has entered the final testing phase and will roll out commercially in FY26, Ola Electric is optimistic that its gross margins will improve by 35 per cent in Q2 FY26.