Ola Electric Q4 loss narrows 42% to ₹500 crore, but revenue plunges 57% as EV demand slowdown bites

Ola Electric Mobility Limited reported a consolidated net loss of ₹500 crore for the quarter ended March 2026, narrowing 42.5% from a loss of ₹870 crore in the year-ago period, helped by aggressive cost cuts and lower operating expenses. However, the electric two-wheeler maker continued to face severe pressure on the topline, with revenue from operations plunging 56.6% year-on-year to ₹265 crore in Q4 FY26 from ₹611 crore a year earlier.

Sequentially, the Bhavish Aggarwal-led firm's net loss widened 2.7% from ₹487 crore in the December quarter, while revenue fell 43.6% from ₹470 crore, signalling that demand recovery in the electric scooter market remains uneven. Total income during the quarter declined 58.2% to ₹304 crore from ₹728 crore in the corresponding quarter last year.

The sharp drop in revenue came amid lower vehicle dispatches and prolonged weakness in consumer demand across the electric two-wheeler segment. Ola Electric delivered 20,256 units during Q4 FY26, while full-year deliveries stood at 1,73,794 units.

For FY26, the Bengaluru-based company reported revenue from operations of ₹2,253 crore, down 50.1% from ₹4,514 crore in FY25. Annual net loss narrowed 19.5% to ₹1,833 crore from ₹2,276 crore a year ago, while total expenses declined to ₹3,245 crore from ₹6,253 crore. The company said it continues to evaluate its liquidity position and is pursuing additional fundraising through a proposed qualified institutional placement (QIP).

Cost rationalisation improves margins

Ola Electric’s total expenses during the March quarter stood at ₹546 crore, down 58.2% from ₹1,306 crore a year ago and 26.3% lower than ₹741 crore in Q3 FY26. Employee benefit expenses came in at ₹58 crore, while other expenses stood at ₹325 crore.

The company said consolidated gross margin expanded sharply to 38.5% in Q4 FY26 from 13.7% a year ago and 34.3% in the December quarter, driven by vertical integration, platform efficiencies and lower operating costs.

Ola Electric also reported its first operating cash flow positive quarter, with consolidated cash flow from operations turning positive at ₹91 crore during Q4 FY26. Free cash flow improved to negative ₹131 crore.

Service turnaround aids recovery push

The Bengaluru-based firm claimed that it saw improvement in service operations after facing customer complaints and operational disruptions through much of FY26. Average service turnaround time reduced by 88% between October 2025 and March 2026, while backlog days declined from 14 days to six days. Warranty costs dropped sharply to ₹59 crore in FY26 from ₹555 crore in FY25.

Ola Electric said April registrations rose 20% month-on-month to 12,166 units despite the broader electric two-wheeler industry declining more than 22% during the period. The company expects Q1 FY27 orders to range between 40,000 and 45,000 units as it attempts to regain market share and stabilise growth