Pure-play EV manufacturer Ola Electric reported a net loss of ₹418 crore on Thursday from ₹495 crore in the year-ago period, helped by the auto segment turning Ebitda positive for the first time to ₹2 crore. It delivered 52,666 units in the quarter, nearly half of the 98,619 units it delivered in the second quarter of last year.

That translated into revenue from operations of ₹688 crore, nearly half of the ₹1,214 crore reported in the same period last year. The Bhavish Aggarwal-led company has acknowledged that the growth of the electric two-wheeler industry has slowed over the past few quarters. “In the recently concluded festive season, sales were flat year on year. We see this as a healthy transition phase before the next wave of mainstream adoption, driven by value-conscious consumers recognising the superior performance and lower cost of EV ownership,” it said in its shareholder letter.

Ola Electric said that it has reduced its auto operating expenditure from ₹308 crore to ₹208 crore sequentially, and consolidated operating expenditure reduced from ₹451 crore to ₹461 crore sequentially. By the first quarter of FY27, Ola Electric expects auto operating expenditure to be around ₹225 crore, and consolidated operating expenditure to be between ₹350 crore and ₹375 crore.

The company reaffirmed its FY26 auto gross margin target of 40%, but has pruned its revenue forecast of approximately ₹3,000–3,200 crore, compared to ₹4200 crore–4700 crore projected last quarter. Its bottom-line focus, on the other hand, should exceed its first quarter guidance, the company added. “The Auto segment will continue to improve quarter-over-quarter profitability. We expect to exit the fourth quarter with Auto gross margins around 40% and segment Ebitda of around 5%,” it added.

It also expects lower volumes than the first-quarter guidance, as it continues to focus on margin and cash discipline in a hyper-competitive market. For the second half of FY26, it targets total deliveries of approximately 100,000 units. “This moderation in unit volumes will be complemented by new Ola शक्ति volumes beginning in the fourth quarter, which will grow and diversify our top line.”

Ola Electric’s cell business will start contributing to revenue from the fourth quarter, through inter-group supply to its auto business and external sales of Ola शक्ति units. As volumes scale, cell gross margins are expected to stabilise at 30% by early FY27.

Reacting sharply to the earnings, Ola Electric shares closed 4.75% lower on Thursday at ₹47.68 apiece.