Ola Electric Targets EBITDA Breakeven in Q1FY26, Shares Gain 2%

Cost-Cutting Initiative Delivers ₹90 Crore Monthly Savings

Ola Electric Mobility Ltd announced on March 12, 2025, that it has successfully concluded its Network Transformation and Opex Reduction Program, a company-wide initiative launched in November 2024 to optimize costs and enhance operational efficiency. The company expects this strategic move to enable its automotive segment to achieve EBITDA breakeven in Q1FY26.

Following the announcement, Ola Electric shares initially gained 2% before settling 1% lower at ₹51.41 apiece on the BSE as of 11:45 PM on March 12.

Highlights of Ola Electric’s Cost-Reduction Strategy

• Completion of Cost-Cutting Initiative:
  Ola Electric confirmed that its cost-reduction initiative has resulted in savings of ₹90 crore per month, with the financial benefits expected to fully reflect from April 2025.
• Inventory Optimization:
  The company has reduced its average vehicle inventory from 35 days to 20 days, improving delivery times from 12 days to just 3-4 days.
• Restructuring of Sales & Distribution:
  Ola Electric shut down regional warehouses, shifting to a direct factory-to-store supply model for vehicles, spare parts, and accessories.
• Automation and Productivity Enhancements:
  The company has automated registration processes, streamlining operations across its sales and service network.

Layoffs and Workforce Reduction

The announcement follows Ola Electric’s major internal restructuring efforts, which led to the layoff of around 1,000 employees across its sales, distribution, and marketing teams in early 2025.

• This came after an earlier downsizing in November 2024, when 500 employees were let go as part of cost-reduction efforts.

Vehicle Registrations Show Improvement

• Daily vehicle registrations have increased to over 800 per day, surpassing the average daily sales recorded in January and February 2025.
• Ola Electric stated that its registration process transformation is in its final phase, which is expected to further boost operational efficiency.

Financial Performance & Road to Profitability

Despite cost-cutting measures, Ola Electric continues to face financial challenges:

• Net loss for Q3FY25 stood at ₹564 crore, compared to ₹376 crore in Q3FY24, reflecting a widening loss scenario.
• Revenue declined by 19.4% YoY to ₹1,045 crore in Q3FY25.