Ola Electric vs Ather Energy: Q1 FY25 EV Report Card

India’s top electric two-wheeler makers, Ola Electric and Ather Energy, reported sharply divergent financial results for Q1 FY25, underscoring the impact of strategic decisions in an evolving EV landscape.

Ola Electric reported a steep 50 percent YoY drop in revenue to Rs. 828 crore, with sales falling from 108,412 to 58,600 units. Its net loss widened to Rs. 428 crore, despite its cell manufacturing unit contributing Rs. 3 crore in revenue. However, this division also reported a massive EBITDA loss of Rs. 43 crore, reflecting early-stage scaling costs. Ola’s investment of Rs. 2,800 crore into cell manufacturing shows a long-term bet on vertical integration—despite current losses, it offers future insulation from supply risks.

Key Highlights

Ola Electric’s revenue dropped 50 percent YoY to Rs. 828 Cr; sales halved to 58,600 units
Ather Energy grew revenue 80 percent to Rs. 644.6 Cr; sales rose to 41,037 units
Rare earth magnet shortage exposes Ola’s diversification edge vs Ather’s supply delays

Ather Energy, in contrast, posted a strong quarter with 80 percent revenue growth to Rs. 644.6 crore and sales rising from 16,515 to 41,037 units. It reduced losses to Rs. 178.2 crore and remains focused on core operations, avoiding vertical integration into cell manufacturing.

Both companies are grappling with the ongoing rare earth magnet shortage triggered by China’s export restrictions, which caused a 78 percent drop in India’s imports. Ola claims to have "unique solutions" through alternate suppliers and motor tech, while Ather anticipates up to a week’s delay in Q2 production.

Also Read: Ola Electric, Ather Energy Close Gap in July 2025 Sales

The contrasting strategies reveal how supply chain resilience, capital allocation, and vertical integration are now key battlegrounds in India’s competitive EV market—shifting the focus from sales volumes to long-term defensibility.