Ola Electric reported a narrower consolidated net loss for the first quarter of FY27, even as its revenue from operations fell sharply on a year-on-year basis. The electric two-wheeler manufacturer reported a net loss of Rs 336 crore for the quarter ended June, compared with a loss of Rs 428 crore in the corresponding period a year earlier. Revenue from operations declined 45 per cent to Rs 455 crore from Rs 828 crore.

The company's Ebitda loss also narrowed to Rs 165 crore from Rs 237 crore in the year-ago period. Other income declined to Rs 29 crore from Rs 68 crore. Despite the year-on-year decline in revenue, Ola Electric highlighted a recovery in its automotive business on a sequential basis, describing the June quarter as its first full quarter following the operational restructuring undertaken during FY26.

According to the company's shareholder letter, vehicle registrations increased 97 per cent quarter-on-quarter, significantly ahead of the 17 per cent growth recorded by the broader electric two-wheeler market during the same period. Ola Electric's market share rose to 8.4 per cent from 5.1 per cent in the preceding quarter, while automotive revenue increased 72 per cent sequentially.

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The company attributed the improvement to a leaner operating structure following cost-optimisation measures implemented during FY26. Consolidated operating expenses fell 22 per cent quarter-on-quarter to Rs 333 crore, while management reiterated its objective of bringing the steady-state operating cost base closer to Rs 300 crore per quarter. Automotive gross margin stood at 30.5 per cent despite what the company described as a challenging commodity environment.

Operational volumes also increased sharply during the quarter. Orders nearly doubled to around 44,000 units from 22,522 units in the previous quarter, while deliveries rose to approximately 39,200 units from 20,256 units. The higher volumes supported automotive revenue of Rs 455 crore, while gross profit from the automotive business improved to Rs 139 crore. Ola Electric said stronger execution, increased use of artificial intelligence across sales and fulfilment and a streamlined operating structure contributed to the sequential improvement.

Ola Electric also provided an update on its battery-cell manufacturing operations. The company expects its Gigafactory to become operational with a capacity of 6 GWh by September and is expanding the use of internally manufactured cells across its vehicle range. Its 4680 NMC Bharat Cell has already been deployed in performance models, while its 46100 LFP cell has received BIS certification for future mass-market applications. Going forward, the company said it will focus on expanding market share, improving productivity through technology and using scale to move closer to operating profitability as electric mobility adoption grows in India.

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