MUMBAI: It’s been a quarter of high voltage and higher losses at Ola Electric. Despite clocking a robust revenue of Rs 896 crore for the quarter ended 30 June 2025 more than double from Rs 428 crore in Q1 last year, the EV unicorn reported a net consolidated loss of Rs 428 crore, widening from Rs 347 crore a year ago.

The red flags come despite steady momentum on the top line. Ola’s revenue from operations stood at Rs 828 crore, and other income added Rs 68 crore. Segment-wise, automotive sales accounted for Rs 826 crore of the operating revenue, while cell manufacturing remained a minor contributor at Rs 3 crore.

On the cost side, it was a heavy ride. Total expenses ballooned to Rs 1,065 crore, up from Rs 1,849 crore in Q1 FY24. Material costs alone stood at Rs 441 crore, while employee benefits and other expenses amounted to Rs 451 crore. Ola also booked Rs 259 crore towards depreciation and finance costs.

While the company has notched gains in market presence and brand recall, the earnings sheet paints a more complex picture. Ola's net loss before tax stood at Rs 428 crore, matching its loss for Q4 FY25. There was no exceptional income or tax expense this time, but the company had previously reversed Rs 23 crore of production-linked incentives.

Ola, which debuted on the stock exchanges in August 2024 after a Rs 5,275 crore IPO, still has Rs 2,594 crore of those funds unutilised. According to filings, Rs 2,563 crore is parked in fixed deposits, and Rs 31 crore remains in monitoring accounts. The company had earmarked Rs 1,228 crore for battery cell production, Rs 800 crore for debt repayment, Rs 1,600 crore for R&D, and Rs 350 crore for organic growth.

While the EV major faces scrutiny from regulatory bodies such as the Central Consumer Protection Authority (CCPA) and the National Stock Exchange over complaints and data discrepancies, management has expressed confidence that these will have no material impact on financials.

Despite negative operational cash flow of Rs 143 crore in Q1, the company is optimistic. It recently secured board approval to raise Rs 1,700 crore via non-convertible debentures to bolster liquidity and growth plans.

Ola Electric chairman and managing director Bhavish Aggarwal noted that the group continues to assess its operations as a going concern, factoring in expected cash inflows, credit lines, and product rollouts.

For Ola Electric, the road ahead may be steep but with big ambitions in the EV and battery space, it’s not shifting gears just yet.

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