Ola Electric Q3 Results: Loss Narrows to Rs 487 Crore Despite 55% Revenue Decline
Ola Electric reported a narrower net loss for the December quarter (Q3FY26), even as revenue and vehicle deliveries witnessed a sharp year-on-year decline. The electric vehicle (EV) manufacturer is currently undergoing what it describes as a “structural reset,” focusing on long-term sustainability rather than short-term volume growth.
Key Financial Highlights
For the quarter ended December, the company posted a consolidated net loss of Rs 487 crore, improving from Rs 564 crore in the same period last fiscal year.
However, revenue from operations fell significantly by 55% YoY to Rs 470 crore, compared to the previous year’s corresponding quarter.
- Net Loss: Rs 487 crore (vs Rs 564 crore YoY)
- Revenue: Rs 470 crore (down 55% YoY)
- Adjusted EBITDA Loss: Rs 323 crore (vs Rs 494 crore YoY)
- Total Deliveries: 32,680 units (vs 84,029 units YoY)
The reduction in adjusted operating EBITDA loss to Rs 323 crore from Rs 494 crore last year reflects improved cost control and better operating leverage.
Automotive Segment Under Pressure
The automotive segment bore the brunt of the slowdown, with revenues plunging to Rs 467 crore from Rs 1,045 crore in the year-ago quarter. Meanwhile, the cell manufacturing business generated around Rs 9 crore in revenue during the quarter.
Deliveries dropped sharply to 32,680 units, compared to 84,029 units in the corresponding period last year. The company attributed the volume decline to strategic realignment and slower EV penetration growth in the market.
Strategic Reset and Operational Realignment
Management indicated that Q3FY26 marked a turning point, with the company prioritizing structural corrections over aggressive expansion. The retail footprint, cost base, and operating model were recalibrated to establish a sustainable business framework.
According to the company, this restructuring has resulted in:
- A structurally lower volume breakeven level
- Enhanced operating leverage
- Greater focus on long-term profitability
The management emphasized that the objective was to strengthen fundamentals rather than maximize short-term sales numbers.
Capex Phase Nears Completion
Ola Electric has invested approximately Rs 5,300 crore across manufacturing facilities, battery innovation, and research and development platforms. The company believes this scale of investment provides a structural competitive advantage in India’s EV ecosystem.
The heavy capital expenditure cycle is largely complete, with the final phase of its Gigafactory expected to be operational by March 2026. At present, the company’s manufacturing infrastructure supports:
- 1 million vehicles annually
- 6 GWh of cell capacity
Going forward, the focus will shift from capacity creation to revenue expansion. The company has outlined an ambitious medium-term revenue potential of Rs 15,000–20,000 crore over the next few years.
Addressing Service Challenges
The company acknowledged that gaps in service execution affected brand perception during the quarter. It clarified that these concerns were related to service infrastructure and operational execution rather than product quality.
An independent third-party survey reportedly showed 90% overall product satisfaction and strong repurchase intent, indicating sustained customer confidence in its offerings.
Outlook for Retail Investors
While the sharp revenue decline and delivery slowdown may weigh on short-term sentiment, the narrowing losses and improved operating metrics suggest progress in cost optimization. With capex largely behind it and capacity in place, the company’s next phase hinges on scaling revenues efficiently.
Investors will closely monitor demand recovery in the EV segment, execution on service improvements, and the company’s ability to convert installed capacity into sustained revenue growth.
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