Ola Electric Hits Cash-Flow Positive Milestone Despite ₹500 Cr Loss in Q4

Ola Electric Mobility reported its March quarter results just minutes before market close on Wednesday, painting a mixed picture, narrowing losses on one hand and a sharp revenue decline on the other. Notably, shares of the company ended just below flat at ₹36.5 on the same day.

Net loss for the quarter narrowed significantly to ₹500 crore, down from ₹870 crore in the same period last year. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) loss also improved, coming in at negative ₹281 crore against a loss of ₹690 crore a year ago.

Revenue, however, told a harder story. It declined 56.6% year-on-year (YoY) to ₹265 crore from ₹611 crore in Q4 FY25, more than halving in twelve months. Consolidated gross margins, though, showed a dramatic recovery, rising to 38.5% from just 13.7% in the year-ago quarter.

Service Problem That Defined FY26

The management identified poor service quality as the primary constraint on demand throughout FY26. The company said that has now "materially stabilised." Average service turnaround time was cut by 88% between October 2025 and March 2026, and the service backlog was brought down sharply.

The early results are visible. April registrations were up 20% month-on-month, even as the broader electric two-wheeler industry saw a decline of 22% during the same period.

A Cash-Flow First

Q4 FY26 marked Ola Electric's first operating cash-flow positive quarter, with consolidated cash flow from operations at ₹91 crore, a milestone the company flagged as significant in its path toward financial stability.

Management acknowledged that gross margins may moderate in Q1 and Q2 FY27 due to commodity inflation and aggressive pricing strategies, but said the company has a "margin buffer" to stay competitive on price without compromising its position.

What Comes Next

Ola Electric's Gigafactory is entering its next phase, with the company targeting a ramp toward 6 GWh in commercial manufacturing for FY27. Beyond mobility, the factory is being positioned as a platform for energy storage as well.

Artificial intelligence has also been woven into daily operations, with the company handling approximately two lakh connected calls per day across sales, service and operations.