The auditors noted that negative cash flow from operations during the current year was primarily on account of ‘continued operating losses and lower-than expected growth in sales volume
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ANINDITO MUKHERJEE
Questions are being raised about Ola Electric’s future, with latest results and disclosures raising concerns about the company’s financial resilience. While the company’s auditors BSR & Co LLP issued an unqualified opinion on the company’s FY25 financial results, they have also raised concerns over its ability to remain a going concern.
The caution stems from negative operating cash flows of ₹2,391 crore during the year. In response, the management said it remains confident about the company’s continuity, citing existing cash reserves and projected business performance.
The auditors noted that negative cash flow from operations during the current year was primarily on account of ‘continued operating losses and lower-than expected growth in sales volume, which requires the Group to consider mitigating circumstances, to support its operations and meet its continuing obligations.’
The Bengaluru-based EV major widened its losses by 106 per cent in Q4 FY25, at ₹862 crore compared to ₹418 crore in the same quarter of the previous fiscal year. The revenue from operations decreased to ₹611 crore in Q4 FY25 from ₹1,598 crore, down by 62 per cent. The company holds ₹4,000 crore in cash and is considering a ₹1,700 crore non-dilutive debt raise.
This comes at a time when Ola Electric’s share price has plunged more than 30 per cent since listing on 9 August 2024, and is down 66 per cent from its all-time high level of ₹157.53 registered on August 24.
The company has dropped to third in the e-scooter pecking order with legacy players TVS Motor Co. Ltd and Bajaj Auto Ltd surging ahead. Ola’s contemporary, Ather, reported greater revenues in Q4.
Ola’s deliveries fell to 51,375 units from 1.15 lakh units in Q4FY24. For FY25, Ola Electric recorded total deliveries of 3.59 lakh units, up from 3.29 lakh in FY24.
For the full year, Ola Electric Mobility Limited reported a net loss of ₹2,259 crores for the financial year ending March 31, 2025, compared to ₹1,587 crores in the previous year. The company’s consolidated revenue from operations declined to ₹4,514 crores from ₹5,010 crores in FY24.
The shares of the company closed at ₹53.24, up by 0.60 per cent on the BSE.
Published on May 29, 2025