New Delhi, May 5 Gurugram-based EV startup Battery Smart has reported a sharp widening of net loss at Rs 140 crore in FY24, more than double the Rs 61 crore loss it recorded in the previous fiscal year.
Despite a three-fold increase in operating revenue, surging costs weighed heavily on the company’s bottom line.
Battery Smart’s operating revenue grew by 193 per cent to Rs 164 crore in FY24, up from Rs 56 crore in FY23, driven entirely by its core business -- battery-as-a-service for electric vehicle manufacturers.
Including Rs 23 crore in income from interest on financial assets, its total income stood at Rs 187 crore for the year, as per its financials as reported by Entrackr.
However, the company’s total expenditure more than doubled to Rs 327 crore from Rs 125 crore a year ago.
A large portion of this came from a nearly 3.8x rise in depreciation charges to Rs 85 crore and a 3.75x jump in finance costs to Rs 45 crore, according to the data.
Employee benefit expenses also rose significantly to Rs 41 crore, while advertising expenses declined 60 per cent to Rs 8 crore.
Battery Smart’s growing losses reflect ongoing challenges in cost efficiency. Its Return on Capital Employed (ROCE) was -18.34 per cent, and its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin stood at -5.35 per cent.
For every Rs 1 of operating revenue, the company spent Rs 1.99 -- underlining pressure on margins despite growing demand.
As of March 2024, Battery Smart reported current assets worth Rs 328 crore, including Rs 107 crore in cash and bank balances, offering some financial buffer.
Backed by investors such as Tiger Global and Blume Ventures, Battery Smart has raised approximately $192 million to date.
The company’s co-founders, Pulkit Khurana and Siddhart Sikka, together hold 28.5 per cent equity.
Several reports noted that its focus on two- and three-wheelers gives it an edge, particularly in the three-wheeler segment where battery swapping is proving more efficient than traditional charging.
“Still, the company faces risks from large vehicle manufacturers that may prefer proprietary batteries or build their own networks,” the report mentioned.
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