Q4 was a phase of ‘learning and introspection’, says Bhavish Aggarwal

The company currently holds ₹4,000 crore in cash reserves and is exploring a ₹1,700-crore non-dilutive debt raise to fund its upcoming plans
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Ola Electric’s founder and chairman Bhavish Aggarwal called Q4FY25 as a period of “learning and introspection” for the company, as it navigated its transition from a private to a publicly listed entity.

Speaking to analysts in the post-quarter call, Aggarwal acknowledged the need to adopt more mature operational risk practices. “The last quarter has been one of important learning and introspection for us. As we transitioned from a private to a public company, we realised the importance of managing operating risk in a more mature way. That lesson has been well learnt across the organisation,” Aggarwal said.

In the fourth quarter, Ola Electric’s losses widened 106 per cent to ₹862 crore, compared to ₹418 crore in the same quarter last fiscal. Revenue from operations also plunged 62 per cent, falling to ₹611 crore from ₹1,598 crore a year ago.

To navigate the transition and mounting operational challenges, Aggarwal said the company is now taking a more thoughtful approach toward capital allocation and institutionalising its front-end processes and compliance systems. “Going forward, you will see us be more deliberate about capital allocation and operating risk. We have sequenced investments into new products while also focusing on strengthening internal systems,” he added.

The company currently holds ₹4,000 crore in cash reserves and is exploring a ₹1,700-crore non-dilutive debt raise to fund its upcoming plans.

Delays in Cell integration

Ola Electric has also deferred plans to integrate its indigenous 4680 Bharat cell technology into vehicles, citing yield-related challenges and a strategic focus on stabilising its existing product lineup.

“Our yield is currently above 60 per cent. While the cells produced are commercially sellable, scaling up production now would lead to increased yield losses. We’re using current output primarily for rigorous in-vehicle testing with our S1 Pro scooters and upcoming motorcycles,” Aggarwal said.

“Once the auto roadmap is stabilised, we will begin integrating the 4680 cell into select vehicles. However, the real benefit to gross margins will only materialise at scale, around 5 GWh, which we expect to achieve by early FY27,” he explained.

Ola Electric has planned a CapEx of ₹1,600 crore to ramp up cell production capacity from the current 1.5 GWh to 5 GWh. Of this, ₹1,100 crore will be financed through existing debt lines, while ₹400 crore will come from equity.

Ola Electric’s shares slumped 4.26 per cent at ₹50.97 on Friday on the BSE.

Published on May 30, 2025