Ola Electric Mobility Ltd Management Discussions

Management Discussion and Analysis

Indian Economy

Indias economy delivered a robust 6.5% GDP growth in FY2025, reinforcing its status as the fastest-growing major economy globally. This strong performance, achieved amidst global headwinds and domestic challenges, underscores the depth and resilience of Indias structural fundamentals, effective policy responses and rising investor confidence. Macro indicators remained healthy with contained inflation, stable financial markets and strong foreign exchange reserves, collectively providing a solid foundation for sustained expansion.

This growth is expected to continue in FY26 with inflation under control, a positive monsoon outlook and robust capital expenditure plan. While geopolitical uncertainties and trade disruptions remain key concerns, India continues to offer a compelling combination of macroeconomic stability, policy clarity and transformative reforms across infrastructure, digital innovation and financial inclusion, positioning the country to navigate global uncertainties and capitalize on emerging opportunities.

Industry Overview

Indias two-wheeler (2W) industry delivered a solid performance in FY2025, growing by -7.5% YoY, driven by a strong rural recovery. The electric 2W (E2W) segment continued its upward trajectory, with volumes expanding -22% YoY and EV penetration rising to 6.1% (vs. 5.4% in FY2024), underscoring the steady shift toward sustainable mobility.

Over the past five years (FY2020-FY2025), the 2W market has transformed meaningfully, largely driven by electrification. E-scooter volumes surged at a 107% CAGR, while ICE volumes saw a marginal decline, signaling a clear consumer preference for E2W. EV penetration in India has so far been led predominantly by the scooter segment, where penetration has risen sharply from 0.1% in FY 20 to 6.1% in FY 25, laying a strong foundation for mainstream electric mobility.

While short-term factors such as more urban-focused product mix tempered penetration growth in FY 2025, the structural shift toward electric mobility is well underway, supported by increasing consumer awareness, industryleading technological advancements spearheaded by your Company and supply chain efficiencies that continue to lower input costs. These developments have enabled the industry to offer electric two-wheelers across a wide range of price points, making them increasingly competitive with ICE vehicles and with lower operating cost offering an indisputable value proposition.

As EV prices continue to decline, the Government has strategically shifted from consumer subsidies to more structurally efficient production-linked incentives (PLIs) across Automobiles, Components, and Advanced Cell Chemistry (ACC). This move reflects a clear commitment to building a self-reliant, globally competitive EV manufacturing ecosystem, underpinned by confidence in rising consumer demand and a long-term vision to localize the entire value chain.

FY 2025 also marked a turning point in the competitive landscape, as legacy OEMs have recognised the scale of the sector and expanded portfolios, lowered price points, and broadened distribution. To strengthen competitiveness, we are investing in core EV technologies, including in-house development of batteries, motors, and controllers through vertical integration and localised supply chains. This intensifying competition is expected to rapidly accelerate EV penetration, making the segment more vibrant, accessible, and innovation-driven.

At the same time, the global shift towards sustainable mobility is opening up significant export opportunities. Indian E2W manufacturers are well-positioned to cater to emerging markets like Africa, Latin America, and Southeast Asia, which currently account for -75% of Indias 2W exports.

Looking ahead to FY2026 and beyond, the outlook is highly promising. With recovering urban demand, greater financing access, premiumisation trends and continued policy tailwinds the E2W sector is poised for accelerated growth. Backed by innovation, scale, and a sharp consumer value proposition, electric two-wheelers are not just the future of mobility, they are fast becoming the preferred choice of today.

Business Overview

FY 2025 marked a pivotal year for Ola Electric, defined by bold strides, critical learnings, and strategic recalibrations as we advanced our mission to accelerate Indias transition to electric mobility and #EndlCEage. While the year brought industry-wide headwinds, including a slower pace of EV penetration and heightened competitive intensity, it also underscored the strength of our vision, technology backbone and scale readiness.

In August 2024, Ola Electric became Indias first and largest pure-play EV company to go public, marking a significant milestone in our exhilarating journey. We continued to lead the E2W industry with cumulative sales surpassing 9.7 lakh units since inception, almost equivalent to the next two players combined. In FY 2025 alone, we were ahead by more than 1 lakh units of the nearest competitor.

We also operationalised our state-of-the-art Gigafactory in record time, commencing in-house production of our proprietary Bharat Cell, an important step toward vertical integration, cost optimisation, and long-term supply chain resilience.

Operational Review

Our deliveries for FY 2025 reached 3.59 lakh units, up from 3.29 lakh units in FY 2024, maintained our industry leadership by registering >3.4 lakh units in FY25 with a market share of 30% (source: Vahan). This growth was largely driven by the mass product portfolio that registered a nearly four-fold increase in volumes, underscoring our growing presence in the mainstream scooter market. Our premium portfolio contributed to 45% of total sales, reflecting a strategically balanced mix across price segments.

Our product journey from Gen 1 to Gen 3 scooters reflects a sharp focus on futurism, cost-efficiency, and vertical integration. Gen 2 brought a complete platform redesign with 11% fewer parts, 26% better performance, and 22% lower cost. In FY25 we launched Gen 3 products which added in-house innovations like a 48V unified architecture and patented brake-by-wire, delivering 20% more power and range at 11% lower cost. We started delivery of our Gen 3 product portfolio, including the premium SI Pro+ and the versatile SI X+ and SI X models.

However, our growth ambitions also brought to the fore some execution challenges. The rapid expansion of our direct-to-customer sales and service network tested operational bandwidth, contributing to short-term market share losses. These learnings have prompted a sharper focus on balancing growth with operational discipline and profitability.

Our commitment to deepening EV access across India led to the creation of the countrys largest EV distribution network, with over 4,000+ touchpoints spanning Tier I to Tier III cities and rural markets. We also implemented a comprehensive network transformation initiative, aimed at improving delivery timelines and inventory efficiency, strengthening our customer promise and readiness for scale.

In FY 2025, Ola Electric undertook two transformational programs - Project Vistaar and Project Lakshya - to address scaling challenges and strengthen operational resilience. These initiatives were launched in response to rapid network expansion, growing product volumes, and evolving customer expectations. Together, they mark a decisive shift toward building a leaner, more responsive, and scalable organisation, capable of sustaining long-term growth and profitability.

Project Vistaar

The growing complexity of our operations became evident in Q2 FY25, with service-related challenges surfacing in September and October 2024. These highlighted critical gaps in our network design, backend systems, process orchestration, and workforce preparedness as we continued to grow .

Launched in November 2024, Project Vistaar is a comprehensive network transformation program aimed at revamping our customer-facing infrastructure across sales, fulfilment, and service. The initiative is designed to enhance customer satisfaction, drive cost efficiencies, and future-proof our operational model for scale.

Key milestones under Project Vistaar:

• Expansion of our overall distribution network to 4,000+ touchpoints, with majority located in Tier III and rural markets, making us the largest EV distribution network in the country

• Transition to a direct fulfilment model, with vehicles now shipped directly from factory to store, eliminating intermediate warehousing delays

• Strengthening of on-ground capabilities through structured training of front-line teams, improved IT and governance systems, and increased availability of test ride vehicles and live inventory across stores

While 04 FY25 was focused on footprint expansion, our attention in FY 2026 will pivot to productivity enhancement. With a sharper emphasis on operational throughput, store-level performance, and end-to-end service delivery, we expect to achieve measurable improvements in cost control, customer experience, and network optimisation over the coming quarters.

Project Lakshya

Project Lakshya was rolled out parallelly with Project Vistaar as a Company-wide initiative to optimise operating expenses and improve overall productivity across the Auto business. The program targets sustainable cost efficiencies across critical processes, with a strong focus on execution rigour and structural cost reduction.

Notable achievements under Project Lakshya:

• Completion of our Network Transformation initiative, which involved decommissioning of regional warehouses in favour of direct-to-store logistics

• Complete internalisation of the vehicle registration process by enhanced adoption of Al and automation across key operations

These interventions have led to significant cost savings, smoother customer journeys, and higher operational agility.

Combined with the benefits of the Gen 3 platform-such as improved gross margins and a more optimised store footprint - Project Lakshya has helped bring down the EBITDA break-even level for the Auto business to under 25,000 units per month.

Key Financial Highlights

Key Operating Metrics	FY 24	FY 25
Deliveries (Units)	3,29,618	3,59,221
Premium	2,76,466	1,63,098
Mass	53,152	1,96,123

 

Automotive Segment (infer)	FY 24	FY 25
Revenue from Operations	5,010	4,514
Gross Margin	631	806
Gross Margin (%)	12.6%	17.9%
Operating Expenses	1,535	2,066
EBITDA	(904)	(1,260)
EBITDA margin (%)	-18.0%	-279%

 

Consolidate Segment (infer)	FY 24	FY 25
Revenue from Operations	5,010	4,514
Gross Margin	631	806
Operating Expenses	1,898	2,545
EBITDA	(1,266)	(1,739)
EBITDA margin (%)	-25.3%	-38.5%

Revenue

Our deliveries increased by 9% y/y owing to robust performance by our mass market products, which also drove the overall EV penetration in India. Our revenue from operations for the Auto segment in FY 2025 stood at 4,514 crores. This was due to a shift in sales mix towards value-priced mass models, intensified competitive discounting across the industry, and the phased reduction of subsidies by the Government of India. Additionally, a temporary slowdown in deliveries due scale driven challenges briefly impacted topline momentum but has since been resolved through distribution network expansion and process automation in registration, which is now contributing to improved operational efficiency.

Towards the end of the fiscal year, we also began monetising our proprietary software platform, MoveOS+, through paid feature upgrades. Adoption has been promising, with 58% overall uptake - 67% among premium customers - laying the foundation for a high-margin, recurring revenue stream that further strengthens our differentiation through technology.

Gross Margin

FY 2025 marked a meaningful improvement in the margin profile of the Auto business. Gross margins expanded by 5.3 percentage points year-on-year, from 12.6% in FY 2024 to 17.9% in FY 2025, despite a lower contribution from FAME2 subsidies. This improvement was primarily driven by continued investments in vertical integration, R&D and strategic cost optimisation across the supply chain, aided by lower raw material cost of cell.

The ramp-up of our Gen 2 platform throughout the year resulted in notable reduction in bill of materials (BOM) costs, enhancing margin resilience across both premium and mass products. Moreover, the early-stage deployment of Gen 3 platforms, supported by PLI scheme accruals, helped cushion pricing pressures amid a highly competitive market environment.

With further scale-up of Gen 3 offerings and the integration of in-house cell production from our newly commissioned Gigafactory, we expect continued tailwinds to improve gross margin performance in FY 2026 and beyond.

Operational Expenses and EBITDA

FY 2025 saw a step-up in operating expenses, reflecting our conscious investments to build scale, strengthen the customer experience, and unlock operating leverage over the medium term. Operating expenses for the Auto segment stood at Rs.2,066 crores, up from Rs.1,535 crores in FY 2024.

Spending on sales and marketing rose during the year, driven by large-scale brand campaigns and festive promotions aimed at sustaining top-of-mind recall and driving deeper customer engagement amidst heightened competitive intensity. At the same time, we continued to invest in digital infrastructure, enhancing our online sales platform and data analytics capabilities. These investments have laid the groundwork for a more intuitive, data- driven customer journey.

In response to service and fulfilment challenges, observed during peak demand periods, we launched Project Vistaar, focused on transforming our front-end operations. The initiative expanded our retail network, transitioned to direct factory-to-store fulfilment, and scaled team training and governance standards - enabling greater operational resilience. In parallel, Project Lakshya drove structural cost rationalisation by internalising and automating registration workflows, decommissioning regional warehouses, and optimising store operations.

As pioneers of electric mobility, weve taken a proactive approach to warranty provisioning, balancing customer trust with long-term financial health. In the early phases, especially with Gen 1, we adopted a liberal warranty stance to accelerate EV adoption, which led to higher provisioning. With product maturity, warranty costs have dropped sharply-Gen 2 halved costs versus Gen 1, and Gen 3 has halved them again. Under Project Lakshya, weve reset our cost base through a Rs.250 Cr one-off expense. We have implemented tighter SOPs, ensuring future warranty costs remain low while maintaining strong customer confidence.

Reported EBITDA for the Auto segment stood at -Rs.1,260 crores, with an EBITDA margin of -27.9%, compared to - Rs.904 crores and -18.0% in FY 2024. This was impacted by one-time costs, including warranty provisions and IPO- related expenses. Excluding these exceptional items, underlying operating metrics remained stable and continue to trend in the right direction.

Looking ahead, continued margin tailwinds from Gen 3 platforms, deeper vertical integration, and ongoing discipline in cost management through Project Lakshya are expected to support a return to profitability. With the operating cost base now structurally leaner, Ola Electric is well-positioned to achieve EBITDA break-even at approx. 25K units of monthly deliveries - a key milestone on our path to financial sustainability.

Capital Expenditure

Auto Segment

So far our strategy has been focused on achieving growth & driving EV penetration at any cost, for which we have invested significantly ahead in all verticals of Auto business including Future Factory, distribution network and R&D capabilities. In FY 2025, we made targeted capital investments in the Auto segment, underscoring our commitment to product innovation, manufacturing excellence, and nationwide reach.

Approximately Rs.185 crores were directed toward distribution network expansion, a strategic enabler for the Companys direct-to-consumer model. By year-end, our touchpoints had multiplied several times, with more than half located in Indias hinterlands and rural areas, thus broadening access and reinforcing our service capabilities across India.

Around Rs. 137 crores were invested in advancing core product and technology platforms. These included:

• Development of the Gen 3 SI platform, featuring enhanced performance and efficiency

• Rollout of MoveOS 5, the latest upgrade to our proprietary operating system

• In-house development of motor and ABS systems, integrated MCU, and SI Air variants

These initiatives reflect Ola Electrics long-term vision to build world-class E2Ws in India, with a strong focus on performance, affordability, and modular innovation. The Gen 3 platform rollout in 04 FY25 also contributed to improved gross margins, further strengthening the business for scalable growth.

In line with our vertical integration strategy, we also invested in infrastructure to support R&D , manufacturing excellence and tooling support at vendor sites. In the Auto segment, our capital expenditure is largely complete, and in FY 2026, we will be focusing on improving productivity across our assets, including distribution and manufacturing.

Cell Segment

As a part of our vertical integration strategy we have invested heavily in cell manufacturing and have set up Indias first Giga Factory in record time in 10-12 months. Our journey began with BIC, a dedicated in-house R&D facility wherein we developed Indias first 4680 Cell. So far we have invested -1,600 Cr in our Cell business. FY 2025 also marked a breakthrough year in our cell manufacturing journey, with Rs.581 crores allocated toward the establishment and ramp-up of our Gigafactory in Krishnagiri, Tamil Nadu. These investments form the backbone of our vertical integration strategy and long-term cost leadership.

These investments are aimed at enabling in-house production of 4680-format lithium-ion cells, a key milestone in reducing reliance on external suppliers, enhancing cost control, and ensuring security of supply.

Liquidity

FY 2025 was a landmark year for Ola Electric, as we became Indias first and largest EV company to go public in August 2024, a defining moment in the countrys EV journey. The initial public offering (IPO) raised Rs.5,500 crores, with proceeds primarily allocated towards capital expenditure and R&D to strengthen our technological and manufacturing foundation.

As of March 31, 2025, the Companys total borrowings stood at Rs.3,043 crores, comprising both non-current and current liabilities. These borrowings were strategically deployed to support the expansion of manufacturing capacity and address short-term working capital requirements as operations scaled.

Our business continues to maintain a healthy liquidity position, with gross cash and cash equivalents of Rs.3,516 crores as of March 31,2025.

In support of the Companys ongoing capital efficiency strategy, the Board of Directors authorised a debt raise of up to Rs. 1,700 crores, intended for the refinancing of existing obligations and general corporate purposes. This proposed raise of non-dilutive capital is consistent with Ola Electrics capital allocation framework and is part of regular treasury operations to optimise financial flexibility.

Strategic Roadmap

We are a technology-first company committed to accelerating Indias transition to sustainable mobility through a fully integrated EV ecosystem. In the absence of a mature domestic supply chain, unlike in countries such as China or South Korea, the Company has developed critical components such as cells, battery packs, motors, and software in-house. This vertically integrated approach has enabled greater innovation agility, cost control, and independence, positioning Ola Electric with a structural advantage over legacy OEMs dependent on third-party suppliers and imported technologies.

Our strategy is centred on owning core technologies and maintaining end-to-end control of the value chain, a model that facilitates faster innovation cycles, improved unit economics, and the potential for margin expansion as scale increases. This approach is aligned with the playbooks of global EV leaders such as Tesla and BYD, who have demonstrated the long-term benefits of vertical integration in both profitability and customer experience.

Looking ahead, we remain focused on long-term value creation through disciplined execution of this strategy. Continued investment in technology development and localisation will support deeper vertical integration. The product portfolio is being expanded across scooters and motorcycles to cater to a wider set of mobility needs, while the direct-to-consumer distribution model is being scaled to improve customer experience and drive operating efficiency. Together, these strategic levers form the foundation for sustainable, profitable growth.

Product Portfolio Expansion

Scooters - Strong SI franchise :

During FY 2025, we significantly expanded our SI franchise, growing from 6 to 14 scooter variants across a wide price range of Rs.65,000 to Rs.1.7 lakhs, effectively covering both mass-market and premium segments. This diversification allows us to address varied customer needs, balancing value, performance, and features.

The Ola SI has cemented its position as Indias most loved electric scooter, with over 860k units sold till FY25. The SI franchise has deepened EV penetration in India by providing a scooter to match the needs of every Indian.

We chose to start with the mass-market segment as it solves a real need, given the TCO advantage and the opportunity for large-scale shift from ICE to EV is the strongest. We are making the choice more appealing for customers through first-in-segment features, competitive pricing and strong distribution.

The common platform in the SI scooters has played a pivotal role in this evolution, ensuring ride quality and longterm reliability. The SI X delivers a robust, efficient, and accessible product for working professionals, gig workers, and students, while the SI Pro delivers industry-leading battery capacity, peak motor performance, superior range, and rapid acceleration. It comes with competitive pricing while delivering an industry leading gross margin.

In March 2025, we began nationwide deliveries of our Gen 3 scooters. In 01 FY26, Gen 3 models accounted for 56% of total scooter deliveries, indicating rapid market adoption.

As part of our forward product strategy, we will broaden our scooter portfolio to address the needs of all segments and continue offering both Gen 2 and Gen 3 scooters, enabling us to cater to distinct customer segments while maintaining platform efficiency and manufacturing scalability. Continuous generational upgrades will further strengthen the SI platform and reinforce our leadership in the electric scooter category.

Motorcycles - Building the Roadster franchise:

In May 2025, we commenced deliveries of our Roadster motorcycle series, making us the first large OEM in India to commercially launch an electric motorcycle.

Motorcycles account for over 60% of domestic two-wheeler sales annually, yet EV penetration in this segment remains extremely low at just 0.09%, compared to 15% in scooters (In key states like UP, Rajasthan, Karnataka and Maharashtra as high as 25%-45%). This disparity stems from a historical lack of compelling EV options in the motorcycle category. Given rising EV awareness, a maturing charging ecosystem, and our extensive D2C distribution and service network, we anticipate a faster pace of EV adoption in motorcycles.

The motorcycles market size is 2x that of scooters and the vehicles are built for longer commutes, tougher roads, and heavier daily use, making them critical to expanding EV adoption beyond urban centres and into semi-urban and rural areas, thereby significantly increasing our TAM. Motorcycles with on-road price less than Rs.1.5 lakhs formed -80% of the motorcycle market in FY 2025 (selling -10 million units). This is a demanding segment where ICE OEMs struggle to balance competing needs of low cost and lowTCO with high performance, high quality, and advanced features. Electric motorcycles have an advantage over ICE on all metrics.

Leveraging our existing manufacturing infrastructure, the Roadster is produced on the same assembly line as our scooters with minimal modifications, demonstrating the scalability of our production setup. With the first-mover advantage and our extensive D2C distribution and service infrastructure, we are well placed to capture this market across India. Motorcycles also help in enhancing our productivity across manufacturing and front end.

With R&D for the Roadster platform complete, we will continue to focus on advancing the platform through generational upgrades, aligned with our broader strategy of vertical integration and technology-led innovation. Upcoming products like the Sportster and Arrowhead will be built on this platform, leveraging shared architecture to accelerate development and unlock scale benefits.

Vertical Integration / R&D and Technology

At Ola Electric, we have embraced vertical integration, leveraging our advanced technology capabilities across inhouse R&D, engineering, vehicle software (MoveOS), and manufacturing to optimise costs and drive innovation in EVs. By focusing on in-house product development and investing significantly in R&D, we are building a robust, vertically integrated ecosystem for EVs and components, including battery cells. This is reflected in the progress we made during FY 2025:

• Commissioned Indias largest Gigafactory in record time and received BIS certification for our 4680 Bharat Cell

• Launched Gen 3 platform with next-level performance, efficiency, safety, and reliability

• MoveOS 5 launched, full roll-out to be completed by June 2025

• 818 patents filed till date, with 222 successfully granted

Through focused efforts aimed at vertical integration, we have successfully enabled in-house engineering of 89% components with 54% component localisation. We continue to push the boundaries on engineering through focused global-first innovations such as a unified 48V architecture across all components and peripherals. Our engineering roadmap has included a rare-earth-free motor for more than a year now, pre-empting ongoing supply chain risks. We expect to introduce this in our products by the end of the current calendar year.

We started producing our in-house 4680 Bharat Cell in March 2024 and in May 2024 we received BIS certification, confirming our cells meet Indias stringent safety and quality standards. We are ramping up production at the Ola Gigafactory with improving yields. The cell is undergoing extensive testing across performance, lifecycle, and safety parameters, with phased commercialisation set to begin with the SI Pro+ 5.3 kWh and Roadster X+ 9.1 kWh.

We continue advancing our cell R&D, focusing on Gen-2 Nickel Manganese Cobalt (NMC) cells with higher energy density, and Lithium Iron Phosphate (LFP) prismatic cells designed for both EVs and energy storage applications. These innovations will further enhance performance and lower costs across our ecosystem.

Direct-to-customer

Through our direct-to-customer (D2C) omnichannel platform, we manage the entire customer journey - right from discovery and purchase to delivery, servicing, and upgrades. This direct model eliminates intermediaries, giving us full control over the customer experience, enabling faster feedback loops, richer data insights, and strong customer relationships. Our app and website serve as seamless digital storefronts for vehicle booking, financing, insurance, and remote diagnostics, while our physical stores build trust through hands-on trials and personalised support. This integrated approach allows us end-to-end ownership of the front-end, fulfilment, and service operations.

In September and October 2024, the increasing scale of our business showcased gaps in our network design, systems and processes, and training of the workforce. We undertook focused initiatives to resolve the issues.

As a result of Project Vistaar and Project Lakshya, our distribution expansion with co-located service centres and tech-driven productivity gains has reduced service TAT, significantly enhancing customer experience.

Our Network Transformation program, which has streamlined front-end, fulfilment, and service operations, has reduced inventory days, reduced delivery times, and enabled our #HyperDelivery initiative for same-day registration and delivery.

In FY 2026, we will focus on increasing the productivity of our footprint. This includes deeper training of front-line teams, enhanced governance and IT systems, and increasing availability of test ride vehicles and vehicle inventory at our stores. We expect to see sustained improvements in cost efficiency, customer satisfaction, store level productivity and throughput over the next few quarters.

Unlocking Strategic Value through Policy Alignment

Our growth is underpinned by a strong alignment with national and state-level policies that incentivise clean mobility, promote domestic manufacturing, and catalyse advanced EV technologies. These tailwinds have not only enabled us to scale efficiently but have also enhanced our structural cost advantages, improving both profitability and competitiveness.

Productivity Linked Incentives (PLI) Scheme

We are an approved participant under both the PLI Scheme for Advanced Chemistry Cell (ACC) manufacturing and the PLI Scheme for Automobile and Auto Components. These schemes are strategically aligned with our vertically integrated model rewarding scale, localisation, and innovation.

• Our Auto component PLI-certified products began contributing to gross margin expansion in H2 FY 2025

FAME

Our E2Ws qualified for subsidies under FAME II until mid-FY 2025. Despite a reduction in the quantum of benefits during the year, our cost-efficient, vertically integrated supply chain enabled us to maintain competitive pricing and protect margins.

We remain actively engaged with policymakers as India transitions to new frameworks for subsidies and localisation under future phases of FAME.

Tamil Nadu State Incentives

As one of the largest EV investors in Tamil Nadu, we continue to benefit from a range of state-level incentives including:

• Capital subsidies

• Concessional power tariffs

• Infrastructure support

These incentives have strengthened the IRR of our Futurefactory and its co-located ecosystem, further reinforcing Tamil Nadus role as a cornerstone of Indias EV manufacturing.

PM-eBus and PM-eDrive Alignment

While our current focus remains on E2Ws, we are strategically aligned with broader national goals under the PM- eBus and PM-eDrive missions. These initiatives lay the groundwork for a supportive EV ecosystem, should we choose to expand into electric public mobility or four-wheeler segments in the future.

Concessional Corporate Tax Regime

Incorporated after October 1, 2019, Ola Electric qualifies for the 15% concessional corporate tax rate, subject to compliance with applicable conditions. This has translated into stronger post-tax earnings and improved cash flows, which we continue to reinvest into core areas like R&D, product development, and infrastructure.

Talent

At Ola Electric, we have built a purpose-driven, agile culture anchored in innovation, ownership, and a strong bias for action. Our people are at the heart of our ambition to lead Indias EV transition, and we continue to align talent strategies closely with our business priorities. A flat, barrier-free organisational structure, coupled with an emphasis on continuous learning and upskilling, enables faster decision-making and empowers employees at all levels to drive impact.

As of March 31, 2025, the Company had a total of 12,396 employees including off-roll engagements to support operational agility and scalability. We also experienced attrition of (54%) during the year, primarily driven by churn at the front-end level. The churn seems higher compared to peers at the company level given that we directly operate our front-end stores-unlike the traditional dealership model followed by most legacy OEMs.

Technology and R&D remain central to our DNA. A total of 763 employees are currently engaged in advancing research across vehicle engineering, battery systems, embedded software, and electronics and other domains. Within our cell R&D vertical, over 250 researchers are driving Al-led innovation. Their efforts have resulted in approximately 200 patent applications, covering indigenous 4680 cell designs with dry electrode technology, solid- state battery architectures, and in-house LMFP cathode synthesis aimed at achieving higher energy density and superior performance.

To support the rapid scale-up of our retail and service footprint during the year, we undertook one of the largest talent onboarding efforts in the Companys history. In just 45 days, over 2,800 employees were inducted to support expansion across 4,000+ retail touchpoints. Simultaneously, we recruited 1,500 skilled professionals within 30 days to staff our growing service centre network.

This large-scale talent ramp-up ensured operational continuity, strengthened last-mile service delivery, particularly in Tier III and rural markets, and reinforced our ability to scale execution in step with our ambitions.

Outlook

As we enter FY 2026, Ola Electric is firmly positioned to lead the next phase of Indias EV transition. With a robust Gen 3 platform, an upcoming entry into the high-potential electric motorcycle segment, deeper vertical integration, and the foundation of an unparalleled distribution and service infrastructure, we are building the pillars of long-term competitiveness and sustained leadership.

Looking ahead, FY 2026 will be a year of execution and increasing productivity. Our focus will be on scaling revenue, enhancing operating leverage, and delivering on our roadmap towards sustainable profitability. With continued investments in R&D, a strong product pipeline, and a nationwide presence, Ola Electric remains at the forefront of driving widespread EV adoption across both scooters and motorcycles in India.

Internal Controls and Risk Committee

Ola Electrics Board of Directors and Management are committed to maintaining robust internal control systems tailored to the scale and complexity of its operations. These systems are designed to support efficient business activities, safeguard Company assets, prevent fraud and errors, ensure accurate accounting records, and facilitate the timely preparation of reliable financial information.

The Board receives assurance on the suitability and effectiveness of our internal controls through a comprehensive risk-based approach to internal audits and management reviews. The Audit Committee approves the annual internal audit plan and reviews the audit reports quarterly, also monitoring the implementation of management actions in response to audit findings. We have established a well-integrated internal controls framework, with the Internal Audit function playing a vital role in providing the Board with assurance and advising the Management on emerging risks to enable proactive mitigation strategies.

Furthermore, our Risk Committee oversees the organisations overall risk management process. Through our Enterprise Risk Management program, business units and corporate functions utilise an institutionalised approach, aligned with our objectives and facilitated by internal audit, to address potential risks. Business risk management involves cross-functional collaboration and communication, with risk assessment results presented to the Senior Management. The Risk Management Committee reviews key business risk areas, encompassing operational, financial, strategic, and regulatory aspects.