Ola Electric Mobility skids as Q2 revenue declines 39% YoY
The consolidated net loss narrowed to Rs 362 crore from Rs 418 crore a year earlier. However, the loss widened from Rs 336 crore in the previous quarter.
Adjusted operating EBITDA loss stood at Rs 246 crore, compared with Rs 258 crore in Q2 FY26 and Rs 195 crore in Q1 FY27. The adjusted operating EBITDA margin weakened to -58.5% from -37.4% a year earlier and -42.8% in the previous quarter.
Gross margin declined to Rs 126 crore from Rs 213 crore in the year-ago quarter, while the gross margin contracted to 29.93% from 30.9%. Operating expenses declined 21.8% year on year to Rs 369 crore from Rs 472 crore. Operating EBITDA loss widened to Rs 218 crore from Rs 203 crore in Q2 FY26.
On the operational front, Ola Electric said demand was no longer a constraint and that supply chain ramp-up was limiting production. The company expects to produce around 25,000 vehicles in December 2026. It had appointed 255 dealer partners operating 319 stores as of 8 November 2026, and plans to expand the network to around 450 stores by December and 700 by March 2027.
The company said dealer sell-through was improving, with channel inventory at around 15 days. It has stopped taking orders through its direct-to-consumer stores from 1 November, with most of these outlets expected to close by December. The transition to the dealer model is expected to reduce operating expenses further.
Ola Electric's total borrowings declined to Rs 1,819 crore in September 2026 from Rs 3,132 crore in December 2024. Automotive borrowings fell to Rs 337 crore from Rs 2,422 crore over the same period. The company expects its automotive business to generate free cash flow in the near term.
In the cell business, the company achieved the scheduled commercial operation date for its 6 GWh capacity and is ramping up production and yields. It expects to integrate its own LFP cells into vehicles from Q4 FY27. The company said NMC cell yields were currently 70-75% and are expected to reach 80-85% by the end of Q3 FY27 and around 90% in Q4 FY27. LFP yields are expected to reach around 70% by the end of Q4 FY27.
Ola Electric said the government had extended its Advanced Chemistry Cell production-linked incentive scheme benefits until calendar year 2031. It expects the cell business to supply its automotive requirements, with surplus capacity directed towards its Shakti energy storage products.
Ola Electric reported net cash used in operating activities of Rs 403 crore in H1 FY27, compared with Rs 343 crore in the corresponding period last year. The operating cash outflow widened 17.5% year on year.
Ola Electric Mobility is an electric vehicle manufacturer with vertically integrated capabilities across EVs, battery cells and related technologies. The company operates its manufacturing facility in Tamil Nadu and a battery innovation centre in Bengaluru focused on cell and battery technology.
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