Ola Electric posts narrower first quarter loss on higher EV sales

India’s Ola Electric on Friday reported a narrower first-quarter loss, helped by higher electric two-wheeler sales and lower operating expenses following last year’s restructuring.

The company posted a net loss of 3.36 billion Indian rupees ($35.29 million) for the quarter ended June 30, compared with a loss of 4.28 billion rupees a year earlier.

The results come as demand for electric two-wheelers remains strong in India, with analysts expecting the segment to continue gaining share of the broader two-wheeler market.

Ola said orders nearly doubled from the previous quarter to about 44,000 units, while deliveries rose to about 39,200 units, boosting revenue at its automotive unit, its largest business, by 72% sequentially.

Consolidated operating expenses fell 22% from the previous quarter as the company continued cost-cutting measures introduced during last year’s restructuring.

Revenue from operations, however, fell about 45% from a year earlier to 4.55 billion rupees.

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Ola maintained a gross margin of 30.5% despite higher copper, aluminium, lithium and plastics costs, and said further sales growth and cost efficiencies should help improve profitability.

Geopolitical tensions in the Middle East had made fuel prices more volatile, boosting the appeal of electric two-wheelers as consumers look to lower running costs, the company said in an exchange filing.

Analysts expect demand for electric two-wheelers to remain resilient.

Nomura forecasts India’s two-wheeler industry will grow 8.5% in FY27, while Citi expects higher commodity and manufacturing costs to continue weighing on automakers’ June-quarter margins, although the worst of the cost inflation may be over.