Ola Electric Reports 57% Decline in Q4 Revenue, Narrowing Net Loss to Rs 265 Crore and Rs 500 Crore Respectively

Ola Electric Mobility Reports 42.5% Improvement in Net Loss, Revenue Declines

Ola Electric Mobility, a leading electric vehicle manufacturer, reported a consolidated net loss of Rs 500 crore for the quarter ended March 31, 2026, marking a 42.5 per cent improvement year-on-year compared to a loss of Rs 870 crore in the corresponding period last year. Despite the improvement, the company's sequential loss widened 2.7 per cent from Rs 487 crore in the December quarter.

The company's revenue from operations fell 56.6 per cent year-on-year to Rs 265 crore in the March quarter from Rs 611 crore a year earlier. This decline is also reflected in the sequential revenue, which decreased 43.6 per cent from Rs 470 crore in the December quarter. Total income dropped 58.2 per cent to Rs 304 crore from Rs 728 crore in the corresponding quarter last year.

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Total expenses stood at Rs 546 crore during the quarter, down 58.2 per cent from Rs 1,306 crore a year ago and 26.3 per cent lower than Rs 741 crore in the previous quarter. Employee benefit expenses came in at Rs 58 crore, while other expenses stood at Rs 325 crore.

For the fiscal year 2026, Ola Electric reported revenue from operations of Rs 2,253 crore, down 50.1 per cent from Rs 4,514 crore in the previous fiscal year. Annual net loss narrowed 19.5 per cent to Rs 1,833 crore from Rs 2,276 crore a year earlier, while total expenses fell to Rs 3,245 crore from Rs 6,253 crore.

The company said it continues to assess its liquidity position and is pursuing additional fundraising through a proposed qualified institutional placement (QIP).

Cash Flow and Margins

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For the first time, Ola Electric reported a positive operating cash flow in Q4 FY26, with consolidated cash flow from operations turning positive at Rs 91 crore, supported by production-linked incentive (PLI) inflows, improved gross margins, and tighter working capital discipline. Free cash flow improved to negative Rs 131 crore during the quarter.

Ola Electric said its consolidated gross margin expanded sharply to 38.5 per cent in Q4 FY26 from 13.7 per cent a year ago and 34.3 per cent in the December quarter. The company attributed the improvement to vertical integration, the maturity of its Gen 3 platform, and tighter cost controls.

Service Recovery and Sales

The company also highlighted improvements in its service operations, which had faced criticism over the past year. Ola said the average service turnaround time reduced by 88 per cent between October 2025 and March 2026, while service backlog days fell from 14 days to six days. Warranty costs dropped sharply to Rs 59 crore in FY26 from Rs 555 crore in FY25.

Ola Electric said April registrations rose 20 per cent month-on-month to 12,166 units despite the broader electric two-wheeler industry declining more than 22 per cent during the period. The company aims to rebuild its national market share to 15-20 per cent over the next six months.

FY27 Outlook

The Bengaluru-based company expects Q1 FY27 orders to range between 40,000 and 45,000 units, nearly double Q4 levels, driven by improving service levels, stronger sales execution, and recovery in demand.