Ola Electric Mobility Limited has released its Q2 FY26 results, revealing a mixed financial performance. While the company managed to narrow its net loss year-over-year, it also experienced a significant drop in revenue. The results have seemingly disappointed the market, with Ola Electric's shares slipping following the announcement.
For the quarter ended September 30, 2025, Ola Electric reported a consolidated net loss of ₹418 crore, a notable reduction from the ₹495 crore loss incurred during the same period last year. This 15.60% improvement in loss figures is attributed to lower provisions, effective cost control measures, and a higher proportion of sales coming from their Gen-3 platform vehicles. However, the company's revenue from operations experienced a sharp decline of 43%, falling to ₹690 crore from ₹1,214 crore in Q2 FY25. The primary reason for the revenue slump is cited as volume pressures, with vehicle volumes falling 44% compared to last year and 19% sequentially to 55,000 units.
Despite the drop in overall revenue, Ola Electric announced a significant achievement: reaching Auto EBITDA profitability for the first time. This was supported by a gross margin of 30.7%, representing an increase of 510 basis points from the previous quarter. The company also highlighted that its auto segment became cash-generative, recording cash flow from operations of ₹15 crore, though the reported figure stood at a negative ₹40 crore due to a one-time festive inventory build-up. Furthermore, the company reduced its operating expenses by 52%. The EBITDA loss also improved significantly to ₹137 crore, compared to ₹279 crore in the previous year.
In terms of operational highlights, Ola Electric commenced deliveries of its S1 Pro+ (5.2kWh) scooter, powered by the indigenously manufactured 4680 Bharat Cell, which the company sees as a crucial step towards energy independence. During the quarter, Ola Electric launched Ola Shakti, India's first residential Battery Energy Storage System (BESS), built using its in-house developed 4680 Bharat Cells. Ola expects revenue of about ₹100 crore from the BESS business in Q4 FY26 and between ₹1,000 crore and ₹1,200 crore annually in FY27. The company commissioned its Ola Gigafactory with an initial capacity of 2.5 GWh and said it remains on track to scale this up to 5.9 GWh by March 2026. Sales of Ola Roadster, the company's performance electric motorcycle, continued to rise sequentially.
The company's financial statements, sourced from the National Stock Exchange (NSE), reveal that electric scooter sales remained the primary revenue driver, while battery sales contributed marginally. Other income related to batteries and automobiles took the company's total revenue to ₹759 crore in Q2 FY26, down from ₹1,314 crore in the same quarter last year. Procurement costs accounted for 40% of Ola Electric's total expenses in Q2 FY26, standing at ₹477 crore. Employee benefits decreased sharply by 60% to ₹55 crore in Q2 FY26. Overall, the company controlled its total expenses by 35% to ₹1,174 crore in Q2 FY26 from ₹1,809 in Q2 FY25.
Despite the narrowed loss, Ola Electric's stock experienced a decline. The shares traded at ₹49.62, below its IPO price of ₹76.00 and 69% below its post-listing high of ₹157.00. Following the earnings announcement, shares of Ola Electric were trading 1.72 percent lower at Rs 49.20. Ola Electric's sales rebounded in October amid festive demand, posting nearly 20% growth with 16,034 registrations and capturing an 11.16% market share. However, its market share dropped sharply from around 30% a year ago.
