Ola Electric Says Negative Cash Flow Doesn’t Change ‘Going Concern’ Status

Ola Electric Mobility Ltd. is confident of continuing as a “going concern” despite negative cash flow, as it has money in the bank.

On a consolidated basis, the Bengaluru-based electric two-wheeler maker had a negative cash flow from operations of Rs 2,391 crore, primarily due to continued operating loss and lower-than-expected sales growth, according to the notes accompanying the company's fourth-quarter earnings statement.

“The management has carried out an assessment of its going concern assumption and believes that it will be able to continue to operate as a going concern for the foreseeable future and meet all its liabilities as they fall due for payment,” the notes prepared by auditors BSR & Co. LLP stated.

The confidence stems from the assumption that one of its material subsidiaries will deliver operating cash flow in the future on the back of new products, operational efficiencies and increase in gross margins. A lot also depends on its ability to raise debt within available credit limits, and available cash and bank balances.

It's worth mentioning here that Ola Electric's board of directors had on 22 May approved a proposal to raise up to Rs 1,700 crore as debt. The fundraising has to be within borrowing limits approved by shareholders.

The move came within a year of the company's IPO, when it raised Rs 5,275 crore. More than half of this—or Rs 2,823 crore—was unutilised as on 31 March 2025. Of this amount, Rs 2,775 crore are temporarily invested in fixed deposits and Rs 48 crore in the group's monitoring accounts.

To be sure, Ola Electric has remained a loss-making enterprise since its listing in August 2024. Any and all attempts—new products, expanded sales network and cost-efficiency measures—have failed to stem losses. In fact, they have only grown.

Consolidated net loss of the Bengaluru-based EV maker widened to Rs 870 crore in the three months ended 31 March 2025, from Rs 416 crore in the year-ago period, even as revenue tanked 61.7% to Rs 611 crore, according to an exchange filing on Thursday.

That Ebitda loss has doubled year-on-year to Rs 695 crore flies in the face of Ola Electric's claims to turn operationally profitable in Q1 FY26.

For the full year, net loss widened to Rs 2,276 crore as against Rs 1,584 crore in FY24. Revenue fell 9.9% year-on-year to Rs 4,514 crore.

“FY25 saw slower than expected growth, loss in our market share and execution challenges as we attempted to aggressively scale up our sales and service operations,” Ola Electric said in a statement accompanying the earnings. “As we enter FY26, we see urban demand returning on the back of tapering inflation and declining interest rates, while we continue to focus our efforts in making the EV revolution more broad based.”