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Quick Highlights:
- Net loss narrowed to ₹487 crore in Q3FY26, compared with ₹564 crore a year earlier.
- Revenue fell 55% year-on-year to ₹470 crore, primarily due to lower vehicle deliveries.
- Adjusted operating EBITDA margin declined to –68.7%, reflecting continued pressure on profitability.
- Gross margin improved to 34.3%, indicating some operational efficiency gains despite weaker sales.
Ola Electric Q3FY26 Financial Performance
Ola Electric Mobility reported a mixed set of results for the third quarter of FY26. While losses narrowed on a year-on-year basis, revenue declined sharply as vehicle deliveries slowed.
The company posted a consolidated net loss of ₹487 crore, an improvement from ₹564 crore in the same quarter last year. However, the drop in revenue and deliveries highlights the challenging operating environment in India’s electric two-wheeler segment.
From my perspective, the narrowing loss suggests some cost discipline, but the steep revenue contraction is still a concern because growth in deliveries is crucial for scaling EV businesses.
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Revenue and Deliveries Decline
Revenue from operations stood at ₹470 crore, down from ₹1,045 crore in Q3FY25 and ₹690 crore in the previous quarter.
Vehicle deliveries also fell significantly:
- 32,680 units in Q3FY26
- 84,029 units in the year-ago quarter
- 52,666 units in the September quarter
This sharp decline in volumes appears to be the primary driver of the revenue fall.
Segment Performance
The quarter’s performance varied across business segments:
Automotive segment:
- Revenue: ₹467 crore
- Net loss: ₹289 crore
Cell segment:
- Revenue: ₹9 crore
- Net loss: ₹89 crore
These numbers indicate that while the automotive business remains the core revenue generator, the battery cell segment is still in an investment phase.
Profitability and Margins
Adjusted operating EBITDA loss came in at ₹323 crore, compared with ₹494 crore a year earlier but higher than ₹258 crore in the previous quarter.
The adjusted operating EBITDA margin deteriorated to -68.7%, from -47.3% a year earlier.
Despite this, one positive takeaway was the improvement in gross margin to 34.3%, up from 18.6% last year and 30.9% in the previous quarter. In my view, this suggests better cost control or pricing improvements, even if volumes remain under pressure.
Expenses and Cash Position
Total operating expenses were ₹432 crore, down from ₹654 crore a year earlier, reflecting ongoing cost-reduction efforts.
Cash and cash equivalents stood at ₹1,991 crore at the end of the quarter, compared with ₹2,903 crore at the end of Q2FY26, indicating continued cash burn but still a sizable liquidity buffer.
Outlook and Management Commentary
The company stated that service metrics are stabilising and that its Gigafactory is transitioning into commercial-scale deployment, positioning the business for the next phase of growth with improved operating leverage.
Personally, I think the outlook hinges on two factors: consistent delivery growth and the successful scaling of battery manufacturing. Without those, margin improvements alone may not be enough to drive profitability.
Frequently Asked Questions — FAQs
Q. What was Ola Electric’s net loss in Q3FY26?
- The company reported a net loss of ₹487 crore, narrowing from ₹564 crore in the same quarter last year.
Q. Why did Ola Electric’s revenue fall in Q3FY26?
- Revenue declined mainly due to a significant drop in electric two-wheeler deliveries, which fell to 32,680 units.
Q. Did Ola Electric improve its margins?
- Yes, gross margin improved to 34.3%, but EBITDA margins remained deeply negative at -68.7%.
Q. How much cash does Ola Electric have?
- Cash and cash equivalents stood at ₹1,991 crore at the end of Q3FY26.
Q. What is the company’s outlook?
- Management expects improved operating leverage as service performance stabilises and battery manufacturing scales up, though growth in deliveries will remain a key factor to watch.
