Ola Electric shares sink 6% as Q2 revenue falls 39% YoY. What's next?

Shares of Ola Electric Mobility dropped more than 6% on Friday after the EV scooter-maker reported a decline in revenue, even as its consolidated net loss narrowed to Rs 362 crore for the July-September quarter of FY27, compared with Rs 418 crore in the same period last year.

Ola Electric’s revenue from operations fell 39% year-on-year (YoY) to Rs 421 crore from Rs 690 crore in the year-ago quarter. On a sequential basis, the Bhavish Aggarwal-led company's net loss widened from Rs 336 crore in the June quarter, while revenue declined 7.5% from Rs 455 crore. The stock fell to Rs 33.48 apiece on the NSE on Friday morning.

Its adjusted operating EBITDA loss stood at Rs 246 crore, compared with Rs 258 crore a year earlier. However, the loss widened sequentially from Rs 195 crore. The adjusted operating EBITDA margin deteriorated to negative 58.5% from negative 42.8% in the preceding quarter. The company's free cash flow remained negative at Rs 371 crore, compared with negative Rs 351 crore in the June quarter.


Also read |Ola Electric Q2 Results: Loss narrows YoY to Rs 362 crore, revenue falls 39%

Ola Electric said it stopped taking orders through its direct-to-consumer stores on November 1 and plans to shut them by December. The EV-maker, which announced a pivot to a dealership model in August, now has 255 dealer partners operating more than 300 stores, according to its shareholder letter.

The company expects operating expenses to decline by a further Rs 50 crore following the closure of its company-owned store network. Lower operating expenses helped Ola Electric narrow its net loss in the September quarter. The company reported a consolidated gross margin of 29.93%, compared with 30.9% a year earlier and 30.5% in the June quarter.

Ola Electric also said it had significantly reduced its borrowings following its qualified institutional placement (QIP) and rights issue.

The company’s total borrowings declined to Rs 1,819 crore in September 2026 from Rs 3,132 crore in December 2024. Borrowings in its automotive business fell sharply to Rs 337 crore from Rs 2,422 crore during the same period. Ola Electric expects its automotive business to generate positive free cash flow in the near term, supported by lower debt, reduced operating expenses and an improving working capital cycle.

"Demand is no longer our constraint; supply is," the company said in its shareholder letter, adding that the challenge lies in scaling up its supply chain rather than manufacturing capacity. Ola Electric said production had started increasing after remaining broadly flat for several months. It expects to manufacture 25,000 vehicles in December.

The company produced 9,235 vehicles in August, 12,284 in September and 14,092 in October. It is targeting production of 20,000 vehicles in November. Ola Electric also said deliveries of 5,000 vehicles against paid orders were delayed from September to October due to charger unavailability.

Also read |Ola Electric Q2 revenue dips 39% as registrations slide

Ola Electric share price

After a flat market debut in August 2024, Ola Electric shares surged to a lifetime high of Rs 157.40 apiece later that year. The stock subsequently lost momentum, falling to a lifetime low of Rs 22.25 in March 2026, nearly one-seventh of its peak value. It then staged a sharp recovery, doubling from that level in three months to hit a 52-week high of Rs 49.05 apiece in June 2026. The stock has since pared some of those gains.

Ola Electric shares gained more than 4% in a week and around 2% over a month. However, the stock remains down 5% in 2026 so far and nearly 16% over the past year. The company has a market capitalisation of around Rs 16,542 crore.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimershere