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Ola Electric Slashes Loss Amid Revenue Drop
13 Feb
Summary
- Quarterly loss narrowed to ₹487 crore, down from ₹564 crore year-on-year.
- Revenue dropped 55% to ₹470 crore, while gross margin hit a record 34.3%.
- Operating expenses reduced to ₹484 crore, targeting ₹250-300 crore soon.
Ola Electric has successfully narrowed its quarterly loss to ₹487 crore in the third quarter of fiscal year 2026, a notable improvement from ₹564 crore in the same period last year. This financial performance was achieved even as revenue from operations saw a significant decline of 55%, falling to ₹470 crore from ₹1,045 crore.
The company reported a record consolidated gross margin of 34.3% for the quarter. This expansion in margins, up 15.7 percentage points year-on-year, is attributed to Ola Electric's vertically integrated business model and enhanced unit economics. The company described the quarter as a "structural reset" aimed at achieving a sustainable operating model.
Further bolstering its efficiency, Ola Electric reduced its quarterly operating expenditure to ₹484 crore, down from a peak of ₹840 crore in Q4 FY25. The company has outlined a roadmap to lower these costs further to ₹250-300 crore in the coming quarters.
These strategic adjustments are projected to significantly lower the EBITDA breakeven point to around 15,000 units per month. This leaner operating structure is expected to support substantial volume scaling with minimal increases in fixed costs, positioning Ola Electric for future growth.
