Ola Electric Q4 FY26 Loss Narrows 42.5% to ₹500 Crore

Ola Electric reported a consolidated net loss of ₹500 crore for the March quarter, down 42.5% from ₹870 crore a year earlier, helped by lower operating expenses and better margins. Revenue from operations fell 57% year-on-year (YoY) to ₹265 crore in Q4 FY26 from ₹611 crore in the same period last year.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss narrowed to ₹281 crore from ₹630 crore a year ago. At 3:15 PM, Ola Electric shares were down 3.95% on the National Stock Exchange of India (NSE).

Margins Improve Despite Weak Revenue

Consolidated gross margin stood at 38.5% in Q4 FY26. It was 34.3% in Q3 FY26 and 13.7% in the year-ago quarter. The company said the margin profile was ahead of most two-wheeler original equipment manufacturers, including internal combustion engine players.

Ola Electric, however, warned that margins may soften in the first two quarters of FY27 because of commodity inflation and pricing actions aimed at boosting growth. The company also cited geopolitical uncertainty as a risk factor. It added that it still has enough margin buffer to continue aggressive pricing while maintaining unit economics.

First Quarter Of Positive Operating Cash Flow

The March quarter marked the company’s first quarter of positive operating cash flow, even though volumes remained weak. Consolidated cash flow from operations came in at ₹91 crore. Ola Electric said this was supported by Production-Linked Incentive (PLI) inflows, higher gross margins, lower spending, and tighter working capital management.

Consolidated free cash flow improved to negative ₹131 crore during the quarter. The auto business generated cash flow from operations of ₹213 crore and free cash flow of ₹173 crore. Its cell business remained in investment mode as the company continued work on its Gigafactory and prepared for future battery cell and energy storage launches.

Cost Cuts Continue

Ola Electric said FY26 focused heavily on cost rationalisation and tighter operating controls. Consolidated operating expenses, including lease rentals, declined to ₹428 crore in Q4 FY26 from ₹844 crore in Q4 FY25.

According to the company, the fall came from network rationalisation, lower sales and service expenses, reduced fixed overheads, and tighter governance measures. The company expects quarterly operating expenses to decline further towards ₹350 crore over the next few quarters as the impact of cost-cutting measures becomes fully visible.

Also Read - SMR Jewels IPO To Open Soon; Here Are The Key Details

Outlook For FY27

Based on current trends, Ola Electric expects Q1 FY27 orders to be between 40,000 and 45,000 units. That would be nearly double the levels seen in Q4 FY26. The company said its auto business is expected to move towards adjusted operating EBITDA and free cash flow positivity during FY27 as volumes improve.

It attributed the expected improvement to stronger margins, lower costs, tighter working capital control, supplier ramp-up, and better utilisation of existing assets.

Source:

The Economic Times