Ola Electric Q1 loss narrows to ₹336 crore; revenue falls 45%

Ola Electric Mobility on Friday reported a consolidated net loss of ₹336 crore for the quarter ended June 30, 2026, narrowing from ₹426 crore in the year-ago period, as the electric vehicle manufacturer benefited from a sharp sequential recovery in demand and continued cost optimisation.

The Bhavish Aggarwal-led company's consolidated revenue from operations, however, declined 45% year-on-year (YoY) to ₹455 crore in the June quarter from ₹828 crore a year earlier.

On the operating front, the company's EBITDA loss narrowed to ₹165 crore in Q1 FY27 from ₹237 crore in the year-ago quarter.

Despite the YoY decline in revenue, Ola Electric said the June quarter marked a strong turnaround in its automotive business. Orders nearly doubled on a sequential basis to around 44,071 units, up 96% quarter-on-quarter (QoQ) from 22,522 units in Q4 FY26, while deliveries rose 94% QoQ to 39,192 units from 20,256 units.

As a result, automotive revenue from operations increased 72% QoQ to around ₹455 crore, while gross profit improved to ₹139 crore, it said.

"Despite a challenging commodity environment, Ola sustained a gross margin of 30.5%, reflecting the strength of our product economics and maintaining our position among the industry's leading electric two-wheeler gross-margin profiles," the company said in its earnings report.

The company noted that commodity costs during the quarter increased by around 11%, driven by higher copper and aluminium prices, lithium supply constraints in China, and elevated plastics and polymer costs following crude oil supply disruptions.

Even as input costs remained elevated, Ola Electric said it continued to execute its cost optimisation initiatives. Consolidated operating expenses declined 22% QoQ to ₹333 crore.

"We remain focused on achieving a lower steady-state operating cost base of approximately ₹300 crore per quarter. As monthly deliveries continue to scale towards our previously communicated operating breakeven range, we expect operating leverage and continued cost efficiencies to drive further expansion in adjusted operating EBITDA margins," the company said.

The company also highlighted the successful completion of its ₹780-crore Qualified Institutional Placement (QIP) during the quarter. The issue was oversubscribed by 56%, which, according to Ola Electric, reflects strong institutional investor confidence in its long-term growth strategy.

"The capital raised strengthens our balance sheet and provides additional financial flexibility to support disciplined growth," the company said.

Ahead of the earnings announcement, shares of Ola Electric Mobility settled 0.92% lower at ₹41.07 apiece on the BSE, with a market capitalisation of ₹19,008.87 crore.