Ola Electric revenue falls 39% to ₹421 crore in second quarter
Key Facts
Ola Electric’s revenue from operations fell 39% year on year to ₹421 crore in the quarter ended September 30, 2026, while its consolidated net loss narrowed to ₹362 crore. The company’s board approved the unaudited results for the quarter and half-year ended on that date on November 12. The results showed revenue declining despite lower total expenses, as the company seeks to reorganize its sales network and control costs. Management said the main constraint on activity was no longer demand, but the supply chain’s ability to increase production. That puts deliveries and production at the center of monitoring the company’s performance in coming quarters.
Revenue was ₹421 crore, compared with ₹690 crore in the same quarter a year earlier. Total income also fell to ₹448 crore from ₹756 crore a year earlier and ₹484 crore in the June 2026 quarter. The annual revenue decline came alongside lower registrations: the company recorded 41,651 vehicles in the second quarter of fiscal 2027, compared with 51,775 a year earlier. Reuters reported that the company sold that number of units during the quarter. The decline in registrations reflects pressure on the core business during a period of clearly lower revenue.
At the segment level, the automotive business posted a loss of ₹214 crore, compared with ₹233 crore in the corresponding quarter of the previous fiscal year. But segment revenue fell to ₹420 crore from ₹688 crore, meaning the narrower loss came alongside contracting revenue. Total expenses, meanwhile, dropped 28% to ₹639 crore from ₹893 crore in the year-earlier period. Reuters attributed the cost cuts to workforce restructuring, reduced warranty expenses and tighter working-capital cost management. The company says its operational shift aims to reduce costs while reorganizing how it reaches customers.
Operating expenses were ₹369 crore in the quarter, down from ₹390 crore in the June quarter, according to the shareholder letter. The comparison excludes a one-time, non-cash reversal of ₹57 crore recorded in the first quarter. The company said it stopped taking orders through direct-sales stores on November 1, and that most of those stores will close by December. It expects operating expenses to fall by about ₹50 crore more as its company-owned store network closes. This is part of the company’s transition to a model that relies more heavily on dealer stores.
Ola Electric aims to reach about 450 dealer stores by December, then 700 by March 2027. Reuters reported that management expects gross margin to dip slightly in the third and fourth quarters of fiscal 2027 as the dealer network expands, alongside a significant improvement in operating margin. This path sets cost reductions against expected temporary pressure on gross margin. The company said in its shareholder letter: "We stopped taking orders from direct-sales stores on November 1, and most will close by December." The impact of the shift on costs and margins depends on execution of the new network expansion plan.
On production, the company said it expects to manufacture about 25,000 vehicles in December 2026. It said about 5,000 vehicles had paid orders in September, but their delivery was delayed by a week into October because chargers were unavailable. These details support management’s view that supply, rather than demand, is the current constraint on increasing production. The company also said it achieved the commercial-operation milestone for 6 gigawatt-hours of cell manufacturing capacity, and that the government extended the production-linked incentive program for cells through 2031. Across the market, the electric two-wheeler industry totaled 599,317 units in the second quarter, up 82.7% year on year, while its penetration of the two-wheeler market reached 11.2%.
The company said total borrowings stood at ₹1,819 crore in September 2026, compared with ₹3,132 crore in December 2024. Automotive-segment borrowings fell to ₹337 crore from ₹2,422 crore over the same period. These figures provide context for the deleveraging path as the company restructures its operations and sales network. The next stated milestones remain expanding the dealer network to about 450 stores by December and 700 by March 2027, alongside expected production of about 25,000 vehicles in December. Management also expects a slight decline in gross margin in the third and fourth quarters as the dealer network expands.