Weak demand hits Ola Electric as revenue falls 55%
What's the story
Ola Electric has reported a consolidated loss of ₹487 crore for the December quarter of FY26, a reduction from the ₹564 crore loss in the same period last year. However, this is an increase from the ₹410-crore loss recorded in the September quarter of FY26. The company's revenue also saw a sharp decline during this period, with a 55% year-on-year drop.
Financial downturn
Revenue declines by 55% year-on-year
Ola Electric's revenue for the December quarter stood at ₹470 crore, down 55% from ₹1,045 crore in the same period last year. This represents a 31.88% quarter-on-quarter (QoQ) decline as well. The company recognized a one-time charge of ₹5.07 crore due to its new labor code implementation, and lower sales were a factor in the overall financial performance.
Cost management
Losses narrowed by 14% year-on-year
Despite the revenue decline, Ola Electric managed to narrow its losses by 14% year-on-year. This was largely due to lower manufacturing costs for its new range of models. The company also managed to reduce its total expenses by 43% to ₹991 crore in Q3 FY26 from ₹1,736 crore in Q3 FY25.
Sales performance
EV sales remain main revenue driver
Ola Electric's electric scooter sales remained its main revenue driver in Q3 FY26, with battery sales contributing only a small part. Other income from batteries and automobiles brought the company's total revenue to ₹504 crore in Q3 FY26, significantly lower than ₹1,172 crore in the same quarter last year.
Market shift
Market share trends in the EV space
Ola Electric's electric two-wheeler market share fell from 24.8% in January 2025 to under 6% in January 2026 as registrations declined. Meanwhile, Ather Energy gained market share during this period while TVS Motor and Bajaj Auto maintained steady volumes. The shift indicates a redistribution of market share among established and emerging players in the EV space.
Stock performance
Share performance and management changes
After announcing its quarterly results, Ola Electric shares closed at ₹30.92 per share at the end of the trading session. The company's market capitalization stood at ₹13,638 crore ($1.5 billion). Last month, Ola Electric's Chief Financial Officer Harish Abichandani resigned for personal reasons and Deepak Rastogi has been appointed as the new CFO and Key Managerial Personnel by the board.