Ola Electric Achieves Cost Reduction Milestone, Eyes Profitability in Q1 FY26
Ola Electric's cost-saving program cuts 90 crores monthly, improving efficiency, reducing vehicle inventory, and boosting daily registrations, aiming for EBITDA breakeven in Q1 FY26.
New Delhi - Ola Electric has successfully completed the implementation of its Network Transformation and Opex Reduction Program. Launched in November 2024, the initiative aimed at cutting costs and enhancing customer experience has resulted in a sustainable monthly cost reduction of 90 crores.
With these cost-saving measures in place, the company expects to achieve EBITDA breakeven for its automotive segment in the first quarter of the fiscal year 2026 (Q1 FY26), with the full financial impact of the program reflecting from April 2025.
Streamlining Operations for Efficiency
Ola Electric's transformation initiative has included significant changes to its distribution network. The company has shut down all regional warehouses and now ships vehicles, spare parts, and accessories directly from its factory to retail stores. Additionally, automation in registration and other processes, along with productivity improvements in the sales and service network, have contributed to operational efficiency.
As a result, the company has successfully reduced its average vehicle inventory from approximately 35 days to 20 days. Customers now experience faster deliveries, with the waiting period dropping from 12 days to just 3-4 days.
Boost in Daily Registrations
The revamp of the vehicle registration process is nearing completion, and the impact is already visible in the company's sales figures. Ola Electric's daily vehicle registrations have surged past 800 per day, exceeding the average daily sales recorded between January and February 2025.
Path to Profitability
With all aspect of the Network Transformation and Opex Reduction Program now in place, Ola Electric has reinforced its commitment to operational excellence and financial discipline. The structural improvements are expected to drive long-term profitability, with the company on track to achieve EBITDA breakeven for its automotive segment in Q1 FY26.
This development marks a significant step forward for Ola Electric, reinforcing its position as a key player in India's EV sector and paving the way for sustained growth in the years to come.
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