Electric vehicle maker Ola Electric is now eyeing an adjusted revenue of between Rs 800-850 crore as it looks to deliver 65,000 units of its scooters and motorcycles to the market.
It expects auto segment EBITDA profitability through FY26, with the break-even number now at under 25,000 units. For context, the company delivered 51,375 units in Q4 amid a thinning market share as competition tightens in the electric two-wheeler market.
The Bhavish Aggarwal-led company also smothered out investor concerns surrounding regulatory troubles after the company received government enquiries into its trade requirement certificates and discrepancies in its February sales data during the fourth quarter.
“Q4 had a bunch of these issues around regulatory things. Now, those are behind us. For the network expansion, we had to have trade certificates in some areas. We are now fully in touch with all agencies, all state-level RTOs to make sure we are either compliant or have already filed for the compliance, whatever we need,” Aggarwal said during the post-earnings call on Thursday.
Ola Electric, during the quarter, also took a one-time warranty cost of Rs 250 crore to over-provision for Gen 1 and Gen 2 scooters sold till date, which is expected to help the company reduce its overall warranty expenses in the coming quarters.
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“We don’t expect to have any one-time exceptional costs added going ahead in the future quarters. That said, there’s also another positive highlight in that our Gen 2 warranty costs are roughly half of Gen 1, and our Gen 3 warranty costs and failure rates are roughly half of Gen 2. We are seeing every subsequent iteration of our platform getting significantly better on quality and enhanced warranty,” Aggarwal added.
Ola Electric added that the company is holding off on integrating its 4680 battery cell into its vehicles as it is focusing on establishing the Roadster range and the Gen 3 platform in the market. The company said it did not want to add another change to the vehicle engineering at this time.
However, once the auto roadmap stabilises next quarter, the company will kickstart the process of adding the 4680 cells into some of its vehicle variants.
Additionally, Aggarwal said that while Ola Electric saw 25,000 overall orders in February, it saw 3,000 cancellations. It has about 2,000 orders, which are yet to begin deliveries or have just been started, and the remaining have been “largely registered.”
Ola Electric reported a 2X widening of its quarterly loss to Rs 870 crore compared to Rs 416 crore in the year-ago period. Revenue from operations during the period fell by 62% to Rs 611 crore compared to Rs 1,598 crore in the year-ago period.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric)
Edited by Suman Singh
