Ola Electric net loss stands at Rs 362 crore in Q2; revenue drops 39 pc

Mumbai, November 12 (IANS): Ola Electric Limited on Thursday reported a narrower consolidated net loss of Rs 362 crore for the second quarter of FY27, compared with a loss of Rs 418 crore in the corresponding period last financial year (Q2 FY26), even as its revenue from operations fell sharply due to lower sales.

The electric two-wheeler maker's revenue declined 39 per cent year-on-year to Rs 421 crore during the quarter from Rs 690 crore a year ago, according to a regulatory filing.

The company's EBITDA loss widened to Rs 218 crore from Rs 203 crore in the year-ago quarter. Gross margin stood at 29.93 per cent, marginally lower than 30.9 per cent reported a year earlier. In absolute terms, gross margin dropped to Rs 126 crore from Rs 213 crore.

Ola Electric said its operating expenses declined significantly to Rs 369 crore from Rs 472 crore in the corresponding quarter last year.

The figure was also lower than the Rs 390 crore reported in the June quarter of FY27, excluding a one-time non-cash reversal of Rs 57 crore during that period.

The company expects operating expenses to decline further as it completes the transition of its retail network to a dealer-led distribution model.

As of November 8, Ola Electric had 255 dealer partners operating 319 stores across the country and plans to expand the network to around 450 stores by December 2026 and 700 stores by March 2027.

According to the company, wholesale orders and dispatches to dealers have been rising, with repeat orders forming an increasing share of demand.

It said demand currently exceeds supply and that the key constraint remains the pace of supply-chain expansion rather than manufacturing capacity.

Production, which had remained largely stable for several months, has begun increasing on a month-on-month basis.

Ola Electric expects vehicle production to reach around 25,000 units in December. Dealer inventory currently stands at approximately 15 days, while some of the company's oldest dealership locations hold less than a week's stock.

The company has also accelerated its shift away from direct-to-consumer retail operations.

It stopped accepting orders through company-operated stores from November 1 and expects most of these outlets to shut by December, with all new production being routed through dealer partners.