Crime Today News
Ola Electric expects a sharp recovery in its Q1 performance with revenues forecast to rise to Rs 850 crore and gross margins to improve to as much as 30%, after what Chairman and Managing Director Bhavish Aggarwal described as a “complex” and “nuanced” Q4 weighed down by one-time warranty provisions and registration issues.
“This quarter is a little interesting and as well as fairly nuanced and detailed,” Aggarwal told analysts in post-earnings call for the quarter ended March 2025. “I am not going to make very detailed opening remarks because I’m assuming there will be a lot of questions… but in a headline, it has been a quarter of major transformation for us at Ola Electric.”
Ola Electric posted adjusted revenue of ₹649 crore for Q4 FY25, with an auto gross margin of 19.2%. The company attributed the dip in deliveries — and therefore revenue recognition — to a one-off registration issue, which it said has been resolved.
“Our gross margin is trending upwards, especially with the introduction of our Gen 3 platform,” said Aggarwal, noting that 65,000 vehicle deliveries will support Q1 revenue. “We are sharing a revenue forecast of about Rs 850 crores for 65,000 deliveries and a gross margin of about 20-30%, which is much higher than Q4.”
Project Vistaar and Cost Cuts
Aggarwal outlined progress on two strategic initiatives: Project Vistaar, aimed at scaling up Ola’s retail and service network, and Project Lakshya, a cost reduction drive.
“We have expanded to about a total of 3,200 odd company-owned stores and a total of 4,000 stores where we sell,” he said. “Our focus now is to increase sales productivity per store.”
One–Time Warranty Hit and Quality Gains
Ola took a Rs. 250 crore one-time hit in Q4 to provide for warranty obligations related to its Gen 1 and Gen 2 products. “We were, in the last financial year, FY25, adding every quarter some kind of exceptional one-time costs,” said Aggarwal. “Now to do away with that… we have taken a one-time warranty provision of Rs. 250 crores in Q4.”
The company noted substantial improvement in product reliability, with each generation of its vehicles halving the failure and warranty rates of its predecessor. “Our Gen 3 warranty costs and failure rates are roughly half of Gen 2… we actually feel our quality metrics are by far industry-leading,” he added.
Roadster Motorcycle Launch, Cell Yields Progress
Aggarwal confirmed that deliveries of the newly launched Roadster electric motorcycle have begun. “People are loving the product… it looks quite good,” he said. The company will roll out additional models based on the same platform over the coming quarters.
On its proprietary 4680 battery cell project, Ola said commercial production yields have improved, and the company is targeting integration into its vehicles “in the next few months.” Aggarwal said: “We are delaying it a bit just to make sure the operating risk or the operating profile of the auto business is first prioritized.”
This article first appeared on Autocar
📰 Crime Today News is proudly sponsored by DRYFRUIT & CO – A Brand by eFabby Global LLC
Design & Developed by Yes Mom Hosting
