Ola Electric Q3FY26 Results: Loss narrows to Rs 487 crore, revenue drops sharply

Ola Electric Q3FY26 Results: Electric vehicle (EV) maker Ola Electric Mobility on Friday reported a narrower year-on-year consolidated net loss for the December quarter (Q3FY26), even as revenues came under sharp pressure due to a steep decline in scooter sales.

The SoftBank-backed company posted a net loss of Rs 487 crore in Q3FY26, compared with a loss of Rs 564 crore in the same quarter last year. However, on a sequential basis, losses widened from Rs 410 crore reported in Q2FY26.

Revenue from operations fell sharply, declining 55 per cent year-on-year to Rs 470 crore from Rs 1,045 crore in Q3FY25. On a quarter-on-quarter basis, revenue dropped around 32 per cent from Rs 690 crore in the September quarter.

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Sales decline weighs on topline

The sharp fall in revenue was primarily driven by a significant drop in electric scooter sales. Ola Electric sold 32,680 units in Q3FY26, sharply lower than 84,029 units sold during the corresponding quarter last year, reflecting weaker demand and operational adjustments during the period.

Margins improve despite lower volumes

Despite the decline in volumes, the company reported an improvement in profitability metrics. Consolidated gross margin improved to 34.3 per cent, up 15.7 percentage points year-on-year, aided by cost optimisation measures and deeper vertical integration.

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Management commentary

Commenting on the performance, an Ola Electric spokesperson said the December quarter marked a turning point for the company’s operations.

“Q3FY26 marks a structural reset for Ola Electric. We chose to fix the fundamentals by restoring service execution, resetting our cost structure, and deepening vertical integration. The result is a leaner operating model with materially lower breakeven and industry-leading gross margins,” the spokesperson said.

The company added that with service metrics stabilising and its Gigafactory transitioning into commercial-scale deployment, Ola Electric is positioning itself for the next phase of growth with improved operating leverage.

While near-term performance remains under pressure due to lower sales volumes, the company’s focus on cost efficiency and margin improvement will be closely watched by investors and industry observers in the coming quarters.

Ola Electric Q2FY26 result highlights

Ola Electric Mobility reported a consolidated net loss of Rs 418 crore for the quarter ended September 30, 2025, narrowing from Rs 495 crore in the same period last year. Revenue from operations fell 43 per cent year-on-year to Rs 690 crore compared with Rs 1,214 crore in Q2FY25. The company announced that it achieved Auto EBITDA profitability for the first time, supported by a gross margin of 30.7 per cent — an improvement of 510 basis points sequentially.

Operating expenses were reduced by nearly 52 per cent quarter-on-quarter, helping improve overall efficiency. Ola said its auto segment turned cash-positive during the quarter, with cash flow from operations at Rs 15 crore. However, total cash flow stood at a negative Rs 40 crore due to a one-time festive inventory build-up.