Ola Electric Reports Rs 500 Crore Loss, Revenue Drops 56 Percent in Q4

Ola Electric Mobility Ltd reported a mixed set of financial results for the fourth quarter of FY2025–26, showing a narrowing of net losses even as revenue witnessed a steep year-on-year decline, according to an exchange filing submitted on Wednesday. The electric vehicle manufacturer posted a net loss of ₹500 crore for the quarter, compared with a loss of ₹870 crore in the same period last year. While the company continues to remain in the red, the reduced losses indicate improved cost control and operational efficiency over the reporting period.

Revenue, however, fell sharply by 56.6% year-on-year to ₹265 crore, down from ₹611 crore in the corresponding quarter of the previous fiscal year. The decline underscores continued pressure on sales volumes and demand conditions in the electric two-wheeler market, which has seen heightened competition and fluctuating consumer demand.

On an operational basis, EBITDA losses also narrowed significantly. The company reported an EBITDA loss of ₹281 crore, compared with a loss of ₹695 crore in the previous financial year. The improvement reflects lower operating expenses and better gross margin performance, though the business remains far from operational profitability.

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Despite the revenue contraction, Ola Electric highlighted a notable financial milestone, stating that it recorded its first-ever positive operating cash flow quarter in Q4 FY2026. The company reported consolidated cash flow from operations of ₹91 crore, supported by inflows from Production Linked Incentive (PLI) schemes, improved margins, reduced operating expenditure, and tighter working capital management.

Free cash flow also improved during the quarter, rising to ₹131 crore on a consolidated basis. The company attributed this to disciplined cost control and better inventory and cash cycle management across its operations. Looking ahead, Ola Electric outlined an expansion-oriented outlook for FY2027. The company plans to scale up its commercial manufacturing capacity toward 6 GWh as part of its long-term growth strategy in the electric mobility and battery ecosystem.

For the first quarter of FY2027, the company expects revenue in the range of ₹500–₹550 crore, along with projected order volumes of 40,000–45,000 units. The guidance signals an expectation of improved demand traction and higher production throughput in the coming quarters. While the narrowing of losses and improved cash flow provide some financial relief, the sharp revenue decline highlights ongoing challenges in scaling consistent demand in a highly competitive and rapidly evolving electric vehicle market.

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