Ola Electric Mobility Ltd on Wednesday announced that it has completed implementation of its Network Transformation and Opex Reduction Program aimed at reducing cost and improving customer experience. In a regulatory filing, the company said that the company-wide initiative which was launched in November 2024, has delivered a sustainable cost reduction of Rs 90 crore per month.
The initiatives position the company for strong long-term profitable growth and it now expects to achieve automotive segment EBITDA breakeven for the next quarter (Q1FY26). Ola Electric said, “This initiative has delivered a sustainable cost reduction of Rs 90 crore per month. As a result, the company expects to achieve automotive segment EBITDA breakeven for the next quarter (Q1FY26), with the financial impact of these initiatives beginning to fully reflect from April 2025.”
The initiative, Ola Electric said, has 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.
While reducing costs for the company, these changes have also resulted in reducing average vehicle inventory from approximately 35 to 20 days, and reducing delivery time for customers from 12 days to 3-4 days.
As of the vehicle registration process, Ola Electric said, the transformation is in its final stages. The company’s daily registrations have improved significantly, increasing to over 800 per day and crossing the average daily sales for Jan’25 – Feb’25.
“With all elements of the Network Transformation and Opex Reduction Program implemented, the company has delivered on its commitment to operational excellence, and enhanced financial discipline and customer experience,” it said.
Earlier in February, Ola Electric had released its fiscal third quarter earnings report with net loss at Rs 564 crore, widened from Rs 376 crore a year ago. Revenue too dropped by 19 per cent YoY to Rs 1,045 crore from Rs 1,296 crore.
Shares of Ola Electric were down 0.75 per cent at 11:50 am at a trading price of Rs 51.29.