Did Ola Electric Face a Rs 418 Crore Net Loss in Q2?
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Synopsis
Ola Electric Mobility Ltd experiences a significant financial downturn, reporting a Rs 418 crore net loss in Q2 FY26, with revenues shrinking by 43 percent. Despite this, the company aims to enhance cost efficiency and focuses on profitability over volume in a competitive market.
Key Takeaways
- Ola Electric reported a consolidated net loss of Rs 418 crore.
- Revenue dropped by 43 percent year-on-year to Rs 690 crore.
- Operating EBITDA loss reduced to Rs 203 crore.
- Sales of e-scooters fell by 61 percent in October.
- Targeting 100,000 total deliveries in H2 FY26.
New Delhi, Nov 6 (NationPress) Ola Electric Mobility Ltd, led by Bhavish Aggarwal, disclosed a consolidated net loss of Rs 418 crore for the July-September time frame (Q2 FY26), according to its exchange filing released on Thursday, as revenue experienced a downturn.
Revenue from operations saw a significant decline of 43 percent year-on-year, dropping to Rs 690 crore in Q2 FY26 from Rs 1,214 crore in Q2 FY25, reflecting a considerable reduction in sales for the quarter.
Nonetheless, the electric two-wheeler manufacturer managed to narrow its operating EBITDA loss to Rs 203 crore during this quarter, improving from a loss of Rs 379 crore a year prior, signifying enhanced cost management.
The company's auto division achieved an EBITDA margin of 0.3 percent by lowering operating expenses from Rs 308 crore to Rs 258 crore quarter-over-quarter, as stated in the release.
Following the announcement of these results, Ola Electric’s stock price dipped to Rs 49.4 on the NSE, decreasing by 66 paise during intra-day trading, marking a 1.32 percent decline from its previous closing value.
In its filing, the company expressed, "For the Auto segment, we anticipate lower volumes compared to our Q1 guidance as we continue prioritizing margin and cash discipline amid a highly competitive landscape."
For the second half of FY26, Ola Electric aims for total deliveries of around 100,000 units. This reduction in unit volumes will be offset by contributions from its new vertical launching in Q4, the company noted.
In October, the company registered sales of 16,034 e-scooters, which represents a 61 percent decrease from 41,843 units sold in the same month the previous year, based on data from the government’s Vahan portal.
“On a full-year basis, we now project FY26 consolidated revenue between Rs 3,000 and Rs 3,200 crore, reflecting a balanced emphasis on profitability over volume,” the company stated.
The auto segment is expected to continue enhancing quarterly profitability, with projections to exit Q4 with Auto gross margins around 40 percent and segment EBITDA of about 5 percent, they added.
Point of View
Ola Electric's significant Q2 losses signal challenges in the competitive electric vehicle landscape. While the focus on profitability is commendable, the drastic revenue decline raises questions about their market strategy and future growth prospects.
NationPress
06/11/2025
Frequently Asked Questions
What was the net loss reported by Ola Electric in Q2 FY26?
Ola Electric reported a consolidated net loss of Rs 418 crore for the July-September period.
How much did Ola Electric's revenue decline year-on-year?
The revenue from operations dropped by 43 percent year-on-year.
What was the EBITDA loss for Ola Electric in Q2 FY26?
Ola Electric's operating EBITDA loss narrowed to Rs 203 crore in Q2 FY26.
How many e-scooters did Ola Electric sell in October?
Ola Electric sold 16,034 e-scooters in October, marking a 61 percent decline from the previous year.
What are Ola Electric's revenue projections for FY26?
Ola Electric expects a consolidated revenue of around Rs 3,000 to Rs 3,200 crore for FY26.
