Ola Electric Mobility Q2 Results: Net loss narrows to ₹418 crore, revenue drops 43%

Shares of Ola Electric Mobility Ltd. are trading with losses of 1.5% on Thursday, November 6, ahead of their September quarter results announcement.

According to estimates from Kotak Institutional Equities, Ola Electric Mobility is likely to report a net loss of ₹346 crore, which is likely to be narrower than the loss of ₹495 crore that the company reported during the same quarter last year. Losses for the quarter are likely to narrow due to lower provisions from last year, cost control measures, and a higher mix of the Gen-3 platform.

Revenue for the quarter is likely to decline by 44% from the year-ago period to ₹685 crore, according to the Kotak estimate. A decline in volumes is likely to weigh on the company's topline.

Volumes for Ola Electric fell 44% during the quarter compared to last year and 19% on a sequential basis to 55,000 units. Realisations are expected to remain flat last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter is likely to be a loss of ₹161 crore from a loss of ₹379 crore last year.

Demand outlook, PLI benefits and commentary on the road ahead are some of the important things that the street will be watching out for from the management.

Shares of Ola Electric Mobility are currently trading 0.8% lower on Thursday ahead of the results announcement at ₹49.62. The stock trades below its IPO price of ₹76 and 69% below its post-listing high of ₹157.