Bhavish Aggarwal-led electric vehicle maker Ola Electric's consolidated net loss for the October-December quarter widened to ₹564 crore, up 50% from ₹376 crore loss during the corresponding period last year.

Ola Electric says the third quarter, which generally sees an uptick in consumer demand amid several festives, was "weak". "October saw strong performance fueled by festival sales, however, the overall quarter was weak due to high competitive intensity and service challenges. We’ve fixed the service issues and with our network expansion, turned the tide on market share and margins," the company says in a stock exchange filing.

Ola Electric's revenue stood at ₹1,069 crore for the quarter ended December 31, 2024, down 19% from ₹1,336 crore for the quarter ended December 31, 2023.

Despite the quarterly loss, Ola Electric says it maintained a "leadership position" through Q3 FY25, with a 25.5% market share (as per VAHAN data), driven by the company’s EV focus, strong product portfolio and technology leadership.

The company posted an automotive segment gross margin of 20.8% in Q3 FY25, an increase of 2.2 pp YoY. "The company’s automotive gross margin remained strong, improving by 20 bps QoQ to 20.8% in Q3 FY25, despite a 14% QoQ decline in revenue to ₹1,075 Cr due to intensified competition and festive discounts," says Ola.

Ola says its path to profitability will be driven by improvements in gross margin, optimisation in operating costs and operating leverage through product portfolio expansion, category expansion (motorcycles, Gig &Z) and technology leadership.

Giving the update on upcoming EVs, Ola Electric says it launched the S1 Gen 3 products in January 2025 and the company will begin deliveries of the same during February 2025. "Over the Gen 2, Gen 3 offers a 20% increase in peak power, an 11% reduction in cost, and a 20% increase in range. The S1 Portfolio now spans 14 products across Gen 2 and Gen 3. This broadened portfolio allows the company to cater to customers across performance-focused and value-focused segments."

In November 2024, the company also announced its entry-level scooter portfolio including Ola Gig, Gig+ and S1 Z.

During the quarter, the number of vehicles delivered by the company stood at 84,029 units as against 86,775 units delivered in the same period last year. The company says has exceeded its Q2 expansion target of 2,000 stores, expanding the distribution network to over 4,000 touchpoints by Dec’24, up from 784 company-owned stores in Sep’24.

Ola also says that its in-house 4680 Bharat Cell is on track for commercialisation, and module-level testing for integration of these cells in its vehicles has commenced in Q3 FY25, with vehicle deliveries starting Q1 FY26. "The company will continue to invest in Cell R&D and has commenced work on the Gen 2 NMC Cell, which will have higher energy density and LFP Cells for Automotive and BESS applications."

Amid the development, Ola Electric stock dipped 3.58% (2.50 PM) to ₹69.29 on the BSE. The stock has seen around 8.47% decline in the past week.