Ola Electric Q2 Losses Narrow to ₹418 Cr Even as Sales Nosedive; Shares Down 2%

Bhavish Aggarwal-led Ola Electric Mobility on Thursday reported a net loss of ₹418 crore for the quarter ended September 30, 2025, narrowing from ₹495 crore in Q2 FY25, even as its revenue plunged over 40% during the quarter.

The company said “strong margin expansion and cost control” supported its earnings even as the “electric two-wheeler industry’s growth has slowed down over the past quarters.”

Ola Electric reported a 43.2% year-on-year decline in quarterly revenue to ₹690 crore from ₹1,214 crore, as lower volumes weighed on performance. Vehicle deliveries fell 47% year-on-year to 52,666 units in Q2 FY26 from 98,619 units in Q2 FY25, reflecting continued weakness in demand. Deliveries in the premium segment dropped sharply to 13,418 units from 42,074 units a year earlier, while the mass segment declined 31% to 39,248 units from 56,545 units.

Meanwhile, cell production rose significantly to 38,080 units from 11,744 units in the same quarter last year, signalling progress in the company’s localisation and battery manufacturing efforts.

For the full year, the company now expects revenue between ₹3,000 crore and ₹3,200 crore, down from its earlier guidance of ₹4,200–₹4,700 crore, while maintaining its margin outlook for the auto business at around 5%.

EBITDA loss for the quarter narrowed to ₹203 crore from ₹379 crore a year earlier. Notably, Ola Electric’s auto business turned EBITDA positive for the first time, supported by a 30.7% gross margin and a 52% reduction in operating expenses. The business also became cash-generative, recording ₹15 crore in cash flow from operations. Investors now await management commentary on demand outlook, PLI benefits, and the company’s growth roadmap.

Ola Electric’s shares were down 2.2% at ₹49 on the BSE at 11:19 am.

In a letter to shareholders, the company said growth in the electric two-wheeler industry had slowed over recent quarters and that sales during the recently concluded festive season were flat year-on-year.

“We see this as a healthy transition phase before the next wave of mainstream adoption, driven by value-conscious consumers recognising the superior performance and lower cost of EV ownership. In this context, our focus has been clear, consolidate costs and achieve profitability, streamline operations and strengthen fundamentals, and prepare for the next phase of growth across both auto and energy,” it said.

It also criticised competitors for “pursuing short-term market share through aggressive discounting and elevated channel incentives, at the cost of profitability.”

“We have taken the opposite approach — focusing on improving our cost structure, deepening product quality and reliability, and driving margin expansion. This positions us to grow in a margin-accretive way and gain profitable share as the market returns to growth,” the company added.