Ola Electric's Q4 loss down 42.5% YoY to ₹500cr
What's the story
Ola Electric Mobility has reported a consolidated net loss of ₹500 crore for the March quarter. This is a major improvement over the ₹870 crore loss in the same period last year, marking a 42.5% contraction. The company's revenue from operations has seen a steep decline of 57%, coming in at ₹265 crore as compared to ₹611 crore in Q4 of FY25.
Financial details
EBITDA loss stands at ₹281cr
Ola Electric also reported an EBITDA loss of ₹281 crore for the quarter under review. The company's consolidated gross margin stood at 38.5% in Q4 FY26, up from 34.3% in Q3 FY26 and significantly higher than the 13.7% recorded in Q4 FY25. This puts Ola Electric ahead of most two-wheeler OEMs, including established ICE players, according to their statement on the matter.
Projections
Positive operating cash flow
Ola Electric has warned that gross margins may moderate in Q1 and Q2 FY27 due to commodity inflation and pricing measures. However, the company claims it has enough margin buffers to remain aggressive on pricing while maintaining strong unit economics. The firm also announced that Q4 FY26 was its first quarter of positive operating cash flow despite being a low-volume quarter with consolidated cash flow from operations at ₹91 crore.
Cost management
Cost rationalization and tighter operating discipline
Ola Electric has emphasized that FY26 was a year of cost rationalization and tighter operating discipline. The company's consolidated operating expenses, including lease rentals, have sharply declined to ₹428 crore in Q4 FY26 from ₹844 crore in Q4 FY25. This reduction is attributed to network rationalization, tighter control over sales/service costs, lower fixed overheads, and improved governance.