Zoho-backed Ultraviolette reports Rs 32 Cr revenue and Rs 116 Cr loss in FY25

Electric mobility firm Ultraviolette Automotive grew its operating scale by 115% in the fiscal year ending March 2025. However, its losses also rose 88% and crossed the Rs 115 crore threshold during the same period due to a more than 2X surge in the cost of parts, batteries, and other inputs.

The company’s revenue from operations grew to Rs 32.3 crore in FY25 from Rs 15 crore in FY24, according to its annual financial statements sourced from the Registrar of Companies (RoC).

Founded in 2015 by Narayan Subramaniam and Niraj Rajmohan, Ultraviolette designs performance-oriented, aspirational EV two-wheelers. Revenue from sale of these two-wheeler vehicles was the major source of revenue for the company during the last fiscal year. According to Vahan data, the company has sold a total of 547 vehicles in FY25.

The cost of materials was not the primary expenditure for the two-wheeler manufacturer. Instead, employee benefit expenses emerged as the largest cost driver, making up 31% of the total expenses. This cost rose 28% to Rs 59 crore in FY25. The company also spent Rs 7.6 crore in research and development and Rs 7 crore in IT expenses in the same period.

Cost of material, however, jumped 2.2X to Rs 33 crore in FY25 from Rs 15 crore in FY24, while advertising spiked 4.8X to Rs 29 crore in FY25. The company’s depreciation stood at Rs 27.5 crore. Overall, total expenses rose 77% to Rs 189 crore in FY25 from Rs 107 crore in the previous year.

With expenses far outpacing revenue growth, Ultraviolette’s net loss increased 88% to Rs 116 crore in FY25 from Rs 61.6 crore in FY24. Its ROCE and EBITDA margin widened to -40.88% and -396.75% respectively.

On a unit basis, the firm spent Rs 5.85 to earn a rupee in FY25, an improvement from Rs 7.13 spent per rupee of revenue in the previous year. Ultraviolette closed the fiscal with Rs 46 crore in cash and bank balances and current assets worth Rs 170 crore.

According to TheKredible, Ultraviolette has raised a total of $100 million of funding till date, having TVS Motor Company and Mudhal Partners as its lead investors. The company’s co-founders Narayan Subramaniam and Niraj Rajmohan together own 29% of the company.

The thing about aspirational vehicles is, they are not aspirational for the premium pricing. These are strong brands that count on imagery, testimonials and strong personalities to build that aspiration among users. In today’s day and time, some luck with a viral social media campaign will also help. Sometimes, even that isn’t enough as the Indian buyer at all levels remains conscious of after sales service and other factors such as resale as well. 

Ultraviolette doesn’t seem to have done any of that, and it’s still deeply in the red. While its backers obviously know that, the firm needs to make that final risk of investing in a theme, person or association to crack open the market for its pricey bikes. If the investors are convinced about this ability and the product, they need to back it with the funding needed to get there fast.