Ola Electric loss narrows to Rs 336 crore, revenue down 45%

Electric two-wheeler maker Ola Electric reported a narrower net loss of Rs 336 crore in the June quarter, from Rs 428 crore a year ago, helped by lower operating expenses, while revenue slumped 45% due to lower vehicle sales.

The Bhavish Aggarwal-led company reported revenue from operations of Rs 455 crore for the June quarter, down from Rs 828 crore a year earlier, according to its stock exchange filing.

“FY26 was a year which actually took some difficult decisions and necessary actions,” Aggarwal said on the post-earnings call. “We reset the operating model, streamlined the organisation, tightened execution, and materially optimised our cost structure. Q1-27 was the first full quarter operating at that reset pace.”


The company said it delivered nearly 39,192 vehicles in the quarter, lower than 68,192 in the year-ago quarter, but higher than 20,256 units in Q4 FY26.

Vehicle orders doubled to 44,071 units in this quarter from 22,522 in the March quarter. Aggarwal had guided two-wheeler orders between 40,000-45,000 and a consolidated revenue of Rs 500-550 crore for Q1, nearly double Q4 levels, in a social media post in May.

The results come as the company continues to face pressure following a sharp erosion in sales and market share over the past year. Rivals including TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp are all ahead of the company in monthly sales. According to Vahan data, Ola’s market share has shrunk dramatically, falling from 36.7% in calendar year 2024 to 16.1% in 2025, and further to 6.9% in July 2026.

Narrowing expenses

The company’s operating expenses declined 35% year-on-year (YoY) to Rs 333 crore in the June quarter, improving its operating loss before interest, tax, depreciation, and amortisation to Rs 165 crore from a loss of Rs 237 crore a year ago.

The total expenses included a one-time reversal of Rs 57 crore in Advanced Chemistry Cell (ACC) PLI (production-linked incentive) penalties.

While consolidated gross margins improved to 30.5% in the June quarter from 25.8% a year ago, operating Ebitda margins were negative 42.8%, compared to negative 35.7% in the year-ago quarter.

Cost optimisation

On the earnings call, Aggarwal noted that as lithium iron phosphate (LFP) batteries are progressively integrated into the company's portfolio, battery cost optimisation is expected to become another lever to improve product economics.

“NMC is costlier than LFP, and gross margins on the NMC-based Shakti were below our target. We therefore decided not to scale it and are moving to an LFP-based Shakti, which will have healthier gross margins,” he said. NMC is a lithium-ion cell that uses a cathode made of nickel, manganese, and cobalt.

He added that going forward, almost all of Ola Electric’s auto business will move to LFP, and about 20% of the portfolio — the higher-performance, top-end products — will remain NMC-based.

The company also said its gigafactory is expected to be operational at 6 gigawatt-hours by September. Aggarwal expects capex to be around Rs 30-50 crore going ahead. In June, the company raised Rs 780 crore through a qualified institutional placement (QIP).

“As this (customer) base matures, service can increasingly develop into a recurring high-margin revenue stream, with our roadmap targeting service revenues of approximately 400 to 500 crore by 2027-28,” Aggarwal said on the call.