Ola Electric Cuts Costs, Eyes Q1 FY26 Breakeven
Ola Electric achieves Rs 90 crore monthly cost savings, targets EBITDA breakeven in Q1 FY26. The company implemented a network transformation program, reducing delivery times and inventory.
Photograph: Kind courtesy Ola Electric/Facebook.com
New Delhi, Mar 12 (PTI) Ola Electric on Wednesday said it has successfully completed a company-wide initiative to reduce cost and improve customer experience.
The company has successfully implemented Network Transformation and Opex Reduction programme, a company-wide initiative launched in November 2024, Ola Electric Mobility said in a statement.
The initiative has delivered a sustainable cost reduction of Rs 90 crore per month, it added.
As a result, Ola Electric expects to achieve automotive segment EBITDA breakeven for the next quarter (Q1 FY 26), with the financial impact of these initiatives beginning to fully reflect from April 2025, the company said.
The programme encompassed distribution network transformation projects like shutting all regional warehouses and shipping vehicles, spare parts and accessories from the factory directly to stores, automating registration and other processes, and productivity improvements in the sales and service network.
In addition to cost savings, the changes have resulted in reducing average vehicle inventory from around 35 to 20 days, and reducing delivery time for customers from 12 days to 3-4 days, Ola Electric said.
The vehicle registration process transformation is in its final stages, it added.
The company's daily registrations have improved significantly, increasing to over 800 per day, it claimed.
"These structural improvements position the company for strong long-term profitable growth and the company expects to achieve Automotive segment EBITDA breakeven in Q1 FY26," it added.
Shares of Ola Electric Mobility were trading 0.22 per cent up at Rs 51.02 apiece on BSE.
The company has successfully implemented Network Transformation and Opex Reduction programme, a company-wide initiative launched in November 2024, Ola Electric Mobility said in a statement.
The initiative has delivered a sustainable cost reduction of Rs 90 crore per month, it added.
As a result, Ola Electric expects to achieve automotive segment EBITDA breakeven for the next quarter (Q1 FY 26), with the financial impact of these initiatives beginning to fully reflect from April 2025, the company said.
The programme encompassed distribution network transformation projects like shutting all regional warehouses and shipping vehicles, spare parts and accessories from the factory directly to stores, automating registration and other processes, and productivity improvements in the sales and service network.
In addition to cost savings, the changes have resulted in reducing average vehicle inventory from around 35 to 20 days, and reducing delivery time for customers from 12 days to 3-4 days, Ola Electric said.
The vehicle registration process transformation is in its final stages, it added.
The company's daily registrations have improved significantly, increasing to over 800 per day, it claimed.
"These structural improvements position the company for strong long-term profitable growth and the company expects to achieve Automotive segment EBITDA breakeven in Q1 FY26," it added.
Shares of Ola Electric Mobility were trading 0.22 per cent up at Rs 51.02 apiece on BSE.
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