Ola Electric, India’s premier e-scooter manufacturer, announced a wider first-quarter loss on Wednesday. The company’s loss for the April-June quarter grew to Rs 347 crore ($41.4 million), compared to Rs 267 crore in the same period last year.
This increased loss is attributed to the company’s price cuts, implemented to drive demand after government incentives were reduced.
In Q1, Ola Electric achieved a significant revenue increase of 32.3%, reaching Rs 1,644 crore, up from Rs 1,243 crore a year earlier. The EBITDA loss also showed modest improvement, decreasing to Rs 205 crore from Rs 218 crore.
Despite the persistent net loss, Ola Electric’s automotive division is nearing breakeven, reflecting a slight positive shift with an EBITDA margin of 1.97% for the quarter.
Following the results announcement, Ola Electric’s stock rose by 2.38% to Rs 110.64 on the BSE, even as the Sensex experienced a marginal increase of 0.19%, closing at 79,105.88 points.
The results were disclosed after market hours, reflecting investor optimism amidst the company’s ongoing adjustments and growth trajectory.
