Ola Electric Posts Narrower Net Loss in Q4, Boosts Margin Outlook

Ola Electric Narrows Q4 Loss Amid Cost-Cutting Efforts

Ola Electric Mobility, the electric scooter manufacturer, announced its fourth-quarter results on Wednesday, revealing a narrower loss as the company focused on cost-cutting measures amidst growing competition in India's fast-growing electric two-wheeler sector.

The company's shares ended nearly 1% higher at ₹36.94 apiece on the BSE, as the stock entered a consolidation phase after rallying from a swing low of ₹22 to a recent high of ₹42. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock has been trading within a range over the past month, with resistance placed near ₹42, which coincides with the 200-day simple moving average (200 DSMA). On the downside, the ₹33 zone remains a key support area as it aligns with the 50 EMA and the 50% retracement of the recent rally.

Key Takeaways from Ola Electric's Q4 Results

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Net Loss Narrows Sharply

Ola Electric Mobility reported a consolidated net loss of ₹500 crore for the March quarter, narrowing 42.5% from ₹870 crore in the corresponding quarter last year. The loss attributable to the owners of the company declined amid continued cost-rationalisation efforts.

Revenue Falls

Revenue from operations stood at ₹265 crore in Q4FY26, down 57% year-on-year from ₹611 crore reported in the same period of the previous financial year.

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EBITDA Loss Improves

The company posted an EBITDA loss of ₹281 crore during the quarter under review, compared with a loss of ₹630 crore in Q4FY25, reflecting operational improvements and tighter cost controls.

Gross Margin Expands

Consolidated gross margin improved significantly to 38.5% in Q4FY26, compared with 34.3% in Q3FY26 and 13.7% in Q4FY25.

Positive Operating Cash Flow Milestone

The company highlighted that Q4FY26 marked its first quarter of positive operating cash flow despite being a relatively lower-volume quarter. During this quarter, consolidated cash flow from operations amounted to ₹91 crore, supported by production-linked incentive (PLI) inflows, enhanced gross margins, reduced operating expenses, and more efficient working capital management. Consolidated free cash flow improved, rising to negative ₹131 crore.

Auto Business Generates Strong Cash Flow

Ola's auto division recorded operational cash flow of ₹213 crore and free cash flow of ₹173 crore in Q4FY26, indicating enhanced operational efficiency.

Focus on Cost Rationalisation

The company said FY26 was marked by significant cost rationalisation and stricter operating discipline. Consolidated operating expenses, including lease rentals, declined sharply to ₹428 crore in Q4FY26 from ₹844 crore in the year-ago period.

Gross Margins Outlook

Ola Electric Mobility said its Q4FY26 gross margin profile remains among the strongest in the two-wheeler industry, outperforming several established internal combustion engine (ICE) players. However, the company cautioned that margins may moderate in Q1 and Q2FY27 due to commodity inflation and pricing actions aimed at driving growth amid geopolitical uncertainties.

Outlook

According to current trends, the company anticipates Q1FY27 orders to range from 40,000 to 45,000 units, almost double the Q4FY26 figures. As sales increase, the company expects its automotive division to approach adjusted operating EBITDA and achieve positive free cash flow in FY27. It noted that this shift will be facilitated by robust gross margins, further cuts in operating expenses over the upcoming quarters, meticulous working capital management, increased supplier and factory output, and improved use of the current gross block.