Ola Electric struggles to stem declining revenue, worsening unit economics

Detailed summary

Ola Electric's revenue falls 39% year-on-year to ₹421 crore in the September quarter, while adjusted Ebitda margins worsened to -58.5%, despite a narrowing of losses to ₹362 crore.

Bhavish Aggarwal-led Ola Electric Mobility Ltd saw its revenue decline for the eighth consecutive quarter, while its operating profit margin, excluding depreciation and amortization, worsened year-on-year in the September quarter as the electric two-wheeler maker struggled to keep pace with rivals.

The Bengaluru-based company reported a 39% on-year decline in revenue to ₹421 crore while losses shrank to ₹362 crore from ₹418 crore a year ago in the second quarter of fiscal year 2026-27 (FY27). Its reported adjusted earnings before interest, tax, depreciation and amortization (Ebitda) margins worsened from -42.8% in the year-ago period to -58.5%.

The deterioration in unit economics came as rival Ather Energy Ltd reported its first-ever net profit, while Pune-based Bajaj Auto Ltd said its electric two-wheeler business was contributing double-digit positive Ebitda.

Bengaluru-based Ather recorded a profit after tax of ₹1.26 crore during the September quarter as against a loss of ₹154 crore in the year-ago quarter. Revenue surged 63% to ₹1,526 crore. Its Ebitda margin was at 4.9% as against -9.6% a year ago.

Ola Electric is now banking on expanding its dealership network to 700 stores by the end of March, up from 319 currently, and on revenue from its cell business to recover in the upcoming quarters. It expects about 20,000 wholesale orders in December, rising from 3,955 orders in September. The company has also closed all its stores, according to its disclosures.

Moreover, it has installed 6GWh capacity for its cell plant with an eye on ramping up the utilization of the plant to start booking revenue, which will largely come from its own auto business as Ola’s scooters and motorcycles will use in-house cells.

“Both the businesses, the EV business and cell industry, are now seeing very strong macro pull. And we are in both,” Aggarwal said during the company’s earnings call on Thursday evening, expressing hope that the numbers will improve.“Business has stabilized.

Ola Electric…

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