Ola Electric on Friday reported a net loss of ₹487 crore for the quarter ended December 31, 2025. The company has managed to narrow its loss from ₹564 crore reported during the same quarter last year (Q3 FY25). While the bottom line showed improvement year-on-year, it widened slightly from the ₹418 crore loss reported in the preceding quarter (Q2 FY26).

"Structural Reset" amid slower growth

In his statement, founder and CEO Bhavish Aggarwal characterised the quarter as a deliberate "structural reset" for the company. Faced with moderating EV penetration and critical gaps in service execution, the founder said that Ola Electric chose to prioritise fixing its fundamentals over chasing short-term sales volume. This shift was reflected in a revenue drop; consolidated revenue from operations fell to ₹470 crore, a 55% decline from ₹1,045 crore in Q3 FY25.

Record margins and lower breakeven

Despite the revenue slump, the company delivered a record 34.3% consolidated gross margin, the highest in the Indian electric two-wheeler industry, Aggarwal said. He attributed this expansion of 15.7 percentage points year-on-year to the company’s deep vertical integration and the cost efficiencies of its Gen3 platform.

The structural redesign has materially lowered the company's financial bar for profitability. Ola has reduced its EBITDA breakeven point to approximately 15,000 units per month. This was achieved by slashing quarterly operating expenses (opex) from a peak of ₹844 crore in Q4 FY25 to ₹484 crore in the current quarter. Aggarwal expects this figure to further stabilise between ₹250-300 crore in the coming quarters.

Service stabilisation and future outlook

Addressing the company’s widely criticised service quality, Aggarwal said that the issues were related to scale rather than product engineering. Through the "Hyperservice" initiative, Ola has reduced service backlogs by nearly 50% and now completes 80% of service requests on the same day.

Looking ahead, the focus shifts to scaling into existing capacity. With ₹5,300 crore already invested in R&D and manufacturing, the heavy capital expenditure phase is largely over. The Gigafactory doubled its cell production this quarter to 72,418 units and began the first commercial deployment of in-house 4680 Bharat cells into customer vehicles.

"Q3 was not about short-term optics; it was about strengthening the foundation," Aggarwal concluded. With a reset cost base and nearly 90% of opex fixed, the company is now betting that incremental volume recovery will translate directly into sustainable profitability.

The shares of Ola Electric ended 0.16% lower at ₹30.92 apiece on the national stock exchange on Friday. The company's stock price has fallen over 50% in the past year, underperforming the Nifty 500 index that has delivered a return of nearly 12% during the same period.