Ola Electric Q2 Loss Narrows to ₹362 Crore as Revenue Falls 39%

Synopsis

Ola Electric's consolidated NET LOSS for the September quarter was narrower at ₹362 crore as compared to a year ago's loss of ₹418 crore but wider than the loss of ₹336 crore in the June quarter. Revenue declined by 39% to ₹421 crore while the loss on the EBITDA line had increased to a loss of ₹218 crore. The operating expenses reduced to ₹369 crore. Orders were to be placed through the company's stores up to November 1, but the firm has decided to switch to dealers.

For Q2 FY27, Ola Electric reported a consolidated net loss of ₹362 crore compared to ₹418 crore a year ago. Revenue decreased 39% YoY from ₹690 crore to ₹421 crore. The loss continued to grow sequentially from a ₹336 crore loss in Q1 FY27 and the stock rose 4%.

Margins and costs

The loss of EBITDA increased to ₹218 crore from ₹203 crore. Gross margin came in at 29.93% from 30.9% a year ago and declined in absolute terms to ₹126 crore, from ₹213 crore. Operating expenses declined to ₹369 crore from ₹472 crore, and were lower than ₹390 crore in the June quarter, excluding a one-time ₹57 crore non-cash reversal. The reduction in losses was not a result of sales but as a result of the cost cuts.

The move to dealers

Ola Electric has 255 dealer partners with 319 stores as of 8th November. It plans about 450 stores by December 2026 and 700 by March 2027. All new orders for the company will be made through dealers, as the company stopped taking orders through its stores from Nov. 1 and anticipates that most stores will close by Dec.

Demand and supply claims

It is noteworthy that the company makes use of its own forecasts when talking about the road ahead, as this is presented as claims. Orders, wholesale and wholesale to dealers, are trending upward and demand so far is greater than supply, it said, adding that production is also picking up month-on-month and will reach around 25,000 units in December.

Inventories of dealers are approximately 15 days. The dealer's operating expenses should decline even more as the transition progresses. The statements below are management statements and not independently verified.

The earlier trend

This trend has been going on for a year. While revenue dipped 45 per cent in Q1 FY27 to ₹455 crore, the decline was dampened by 22 per cent through cost optimisation. The company has decided to cut costs more than they are bringing in, but revenues haven't caught up.