Ola Electric Slumps 7% to All-Time Low on Q3 Revenue Drop, Continued Losses

Shares of Ola Electric Mobility fell 7.05% on Monday to hit a new all-time low of ₹28.71 after the Bhavish Agarwal-led EV maker reported weak earnings for the third quarter of FY26, including a sharp sequential revenue decline and continued losses.

The stock, which closed at ₹30.89 on Friday, was trading around ₹28.82 by the end of Monday’s session on the National Stock Exchange.

The company reported consolidated revenue of ₹470 crore in Q3 FY26, down 31.9% from ₹690 crore in Q2 FY26 and 55% from ₹1,045 crore a year earlier.

Net loss stood at ₹487 crore, while adjusted operating EBITDA loss widened 25% quarter-on-quarter to ₹323 crore. The EBITDA margin deteriorated sharply to negative 68.7% from negative 37.4% in the previous quarter. Ola Electric delivered 32,680 electric two-wheelers during the quarter.

Despite the weak revenue performance, operating metrics showed some improvement. The company’s consolidated gross margin rose to 34.3%, compared with 30.9% in Q2 and 18.6% a year earlier, supported by its vertically integrated manufacturing model and improved unit economics from its Gen 3 platform. Total operating expenses increased 3.8% sequentially to ₹432 crore but declined 34% year-on-year.

The company described the quarter as a “structural reset”, saying it focused on improving service execution, restructuring costs and strengthening vertical integration. Ola Electric said these steps have resulted in a leaner operating model with a lower breakeven point, and that stabilising service metrics and the transition of its Gigafactory towards commercial-scale deployment position it for improved operating leverage and future growth.

In a note on Monday, Emkay Global Financial Services said Ola Electric reported a weak performance in the third quarter, even as the broader electric two-wheeler (E2W) segment continues to show strong structural growth.

The brokerage noted that while the industry is seeing a recovery in adoption after a temporary slowdown following recent GST changes, Ola’s volumes declined steadily to 32,000 units in Q3, accompanied by a drop in market share.

According to the analyst, the company is taking multiple steps to improve execution, including rationalising its store network to 700 outlets and reducing costs to conserve cash. Ola has guided for quarterly operating expenses of ₹250–300 crore, significantly lower than the ₹430 crore reported in the third quarter, while also working to address brand concerns arising from product- and service-related issues.

However, Emkay believes the turnaround may be gradual and challenging, particularly as legacy players step up competition and Ather Energy scales up operations. The company will need a strong cash buffer to navigate this phase, it added.

Based on the brokerage’s estimates, Ola Electric’s financial position has shifted to a net debt of ₹670 crore in the first nine months of FY26, compared with net cash of ₹160 crore in H1FY26. A potential strategic stake sale in its battery business could provide a meaningful liquidity boost, Emkay said. The brokerage added that it prefers to play the E2W opportunity through TVS Motor Company and Bajaj Auto, along with Ather.