Bhavish Aggarwal says Ola Electric can sell every vehicle it produces even as Q2 loss widens sequentially

Ola Electric chairman and managing director Bhavish Aggarwal said demand is no longer a constraint for the electric two-wheeler maker, with supply-chain bottlenecks emerging as the key challenge, as the company reported a consolidated net loss of ₹362 crore for the September quarter.

“Demand is ahead of supply, and we can sell every vehicle we produce,” Aggarwal said in a letter to shareholders accompanying the company's Q2 FY27 results. He said the constraint was not the company's manufacturing capacity but the pace at which its suppliers could scale up.

Consolidated revenue from operations stood at ₹421 crore in Q2 FY27, compared with ₹690 crore in the year-ago quarter and ₹455 crore in the preceding June quarter. The net loss narrowed from ₹418 crore a year earlier but widened from ₹336 crore in Q1 FY27. Consolidated gross margin was 29.93%.

Dealer network expands as Ola shifts away from direct sales

Ola said it had appointed 255 dealer partners operating 319 stores as of November 8, around two months after its first dealer-operated outlets went live on September 4. The company is targeting around 450 stores by December and 700 by March 2027.

The company stopped taking orders through its direct-to-consumer stores from November 1, with most of these outlets expected to close by December. Aggarwal said the dealer model was improving the company's working-capital cycle, as partners pay for vehicles when they place orders and hold inventory themselves.

Channel inventory stood at around 15 days, while stores that opened earlier were carrying less than a week's stock, according to the shareholder letter.

Ola said approximately 5,000 vehicles with paid orders in September were delayed by a week and delivered in October because of charger unavailability. It expects production to reach around 25,000 vehicles in December as supplier capacity improves.

Auto debt falls; cell manufacturing ramps up

Ola's total borrowings declined to ₹1,819 crore in September 2026 from ₹3,132 crore in December 2024. Borrowings in the Auto business fell to ₹337 crore from ₹2,422 crore over the same period.

However, the Auto segment reported negative free cash flow of ₹134 crore in Q2, even as management said it expects the business to generate positive free cash flow in the near term.

In its Cell business, Ola said it had commissioned 6 GWh of capacity and that the government had extended its advanced chemistry cell production-linked incentive scheme until CY2031. The company is ramping up production and yields, with plans to gradually integrate its own LFP cells into vehicles from Q4 FY27.

Aggarwal described Auto and Cell as the company's two long-term growth engines, with supplier ramp-up and execution of the dealer transition remaining key to its turnaround.