Ola Electric Mobility Achieves Major Milestone with Network Transformation and Cost Reduction Program

1 min read     Updated on 12 Mar 2025, 11:13 AM
scanxBy ScanX News Team
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Overview

Ola Electric Mobility has completed its Network Transformation and OPEX Reduction Program, resulting in ₹90 crores monthly cost savings. The company expects Automotive segment EBITDA breakeven in Q1 FY26. Improvements include reduced inventory days, faster customer delivery times, and streamlined operations. Vehicle registration process enhancements have increased daily registrations to over 800. The company has scheduled investor meetings in Mumbai, Singapore, and virtually in March 2025.

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*this image is generated using AI for illustrative purposes only.

Ola Electric Mobility Limited (NSE: OLAELEC, BSE: 544225) has announced the successful completion of its ambitious Network Transformation and Operational Expense (OPEX) Reduction Program, marking a significant milestone in the company's journey towards operational excellence and financial efficiency.

Cost Savings and Operational Improvements

The company-wide initiative, launched in November 2024, has delivered impressive results:

  • A sustainable cost reduction of ₹90 crores per month
  • Expected Automotive segment EBITDA breakeven for Q1 FY26 (April-June 2025)
  • Reduction in average vehicle inventory from 35 to 20 days
  • Decrease in customer delivery time from 12 days to 3-4 days

Key Transformations

The program encompassed several critical areas:

  1. Distribution Network: Closure of all regional warehouses, with direct shipping of vehicles, spare parts, and accessories from the factory to stores
  2. Process Automation: Streamlining of registration and other processes
  3. Sales and Service Network: Productivity improvements across the board

Registration Process Improvements

The vehicle registration process transformation, currently in its final stages, has shown significant progress:

  • Daily registrations have increased to over 800 per day
  • Current registration rates have surpassed the average daily sales for January-February 2025

Financial Outlook

With these structural improvements in place, Ola Electric Mobility is poised for strong, long-term profitable growth. The company anticipates:

  • Full financial impact of the initiatives to reflect from April 2025
  • Automotive segment EBITDA breakeven in Q1 FY26

Investor Relations

In related news, Ola Electric Mobility has also announced a series of upcoming investor and analyst meetings:

Date Type of Meeting Location
March 17-19, 2025 Multiple One-on-one and group meetings Mumbai
March 20-21, 2025 Multiple One-on-one and group meetings Singapore
March 25, 2025 Group Meeting Virtual

These meetings underscore the company's commitment to transparency and ongoing communication with its stakeholders.

The successful implementation of the Network Transformation and OPEX Reduction Program demonstrates Ola Electric Mobility's dedication to operational excellence, financial discipline, and enhanced customer experience. As the electric mobility sector continues to evolve, these improvements are expected to strengthen the company's competitive position and set the stage for sustainable growth in the coming years.

Historical Stock Returns for Ola Electric Mobility

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Ola Electric Mobility
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Ola Electric Mobility Slashes Costs by ₹90 Crore Monthly, Eyes EBITDA Breakeven

2 min read     Updated on 12 Mar 2025, 11:11 AM
scanxBy ScanX News Team
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Overview

Ola Electric Mobility has implemented a Network Transformation and Opex Reduction Program, resulting in a ₹90 crore monthly cost reduction. The company expects to reach EBITDA breakeven in its automotive segment by Q1 FY26. Operational improvements include reduced inventory days, faster delivery times, and increased daily vehicle registrations. The full financial impact is anticipated from April 2025.

3303716

*this image is generated using AI for illustrative purposes only.

Ola Electric Mobility Limited (NSE: OLAELEC, BSE: 544225) has announced a significant milestone in its journey towards profitability. The electric vehicle manufacturer has successfully implemented a cost-reduction initiative that is expected to have far-reaching implications for its financial performance.

Cost Reduction and EBITDA Breakeven

The company has revealed that its Network Transformation and Opex Reduction Program, launched in November 2024, has yielded impressive results. The initiative has delivered a sustainable cost reduction of ₹90 crore per month, a substantial amount that is set to positively impact the company's bottom line.

As a direct consequence of these cost-saving measures, Ola Electric anticipates achieving EBITDA breakeven in its automotive segment for the upcoming quarter (Q1 FY26). The full financial impact of these initiatives is expected to be reflected from April 2025, marking a significant turning point for the company's financial health.

Operational Improvements

The cost-reduction program encompasses several key areas:

  1. Distribution Network Transformation:

    • Closure of all regional warehouses
    • Direct shipping of vehicles, spare parts, and accessories from the factory to stores
    • Automation of registration and other processes
  2. Productivity Enhancements:

    • Improvements in sales and service network efficiency

These changes have resulted in notable operational improvements:

  • Reduction in average vehicle inventory from approximately 35 to 20 days
  • Decrease in customer delivery time from 12 days to 3-4 days
  • Significant increase in daily vehicle registrations, now exceeding 800 per day

Looking Ahead

Pritam Das Mohapatra, Company Secretary & Compliance Officer of Ola Electric Mobility, stated, "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."

The company believes that these structural improvements position it for strong long-term profitable growth. As Ola Electric continues to streamline its operations and improve its financial metrics, investors and industry observers will be keenly watching its progress towards sustained profitability in the competitive electric vehicle market.

Investor Relations

In a separate announcement, Ola Electric Mobility has scheduled a series of investor and analyst meetings from March 17 to March 25, 2025. These meetings, to be held in Mumbai, Singapore, and virtually, underscore the company's commitment to transparent communication with its stakeholders as it navigates this crucial phase of its growth strategy.

As Ola Electric Mobility implements these cost-saving measures and operational improvements, the electric vehicle industry will be watching closely to see if this strategy sets a new benchmark for achieving profitability in the rapidly evolving EV market.

Historical Stock Returns for Ola Electric Mobility

1 Day5 Days1 Month6 Months1 Year5 Years
-1.95%-3.91%-6.86%-37.21%-48.83%-48.83%
Ola Electric Mobility
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