Ola Electric posts ₹ 418 cr loss in Q2, revenue plunges 43%
What's the story
Ola Electric Mobility has reported a narrower consolidated net loss of ₹418 crore for the September quarter (Q2 FY26). The company's loss was higher at ₹495 crore in the same period last year. However, the company's revenue from operations saw a major decline of 43% year-on-year, falling to ₹690 crore from ₹1,214 crore in Q2 FY25.
Financial improvements
EBITDA profitability achieved for the first time
Despite the revenue dip, Ola Electric achieved EBITDA profitability for the first time. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of the company's operational profitability. The company posted a gross margin of 30.7%, an increase of 510 basis points quarter-on-quarter. Operating expenses were also slashed by some 52% compared to the previous quarter, indicating improved cost efficiency amid lower topline figures.
Cash flow
Cash-generative auto business in Q2 FY26
Ola Electric's auto business turned cash-generative during Q2 FY26, with an underlying cash flow from operations at ₹15 crore. However, it was reported at a negative ₹40 crore due to one-time festive inventory build-up. The company expects a more balanced and diversified revenue mix in the coming quarters as energy products ramp up.
Growth strategy
Revenue and margin projections for FY26
For H2 FY26, Ola Electric aims to deliver around 100,000 units. The company projects its consolidated revenue for FY26 at around ₹3,000-3,200 crore. It also expects the auto segment's gross margins to reach about 40% by Q4 with segment EBITDA of around 5%. The cell business is expected to start contributing to revenue from Q4 FY26 through inter-group supply and external sales of Ola Shakti units.
Investment strategy
Ola Electric's capex estimates for H2 FY26
For the auto segment, Ola Electric estimates capital expenditure for Q3 and Q4 FY26 at ₹100-150 crore. The company expects its auto business to be free cash flow positive by FY26-end. Capital spending on the cell business will continue toward completing the 5.9 GWh Gigafactory installation, largely funded by project finance from the State Bank of India.