Ola Electric Shares Tank as Revenue Drops 43% in Q2; Profitability Remains Under Pressure

Shares of Ola Electric Mobility Limited slipped into a 5% lower circuit on thursday, after the company reported a sharp decline in revenue and trimmed its guidance for volumes and margins in the September quarter (Q2 FY26). The stock fell to Rs 47.55 apiece on the BSE by 3 PM, as investors reacted to the company's weaker-than-expected financial performance.

Ola Electric Q2 FY26 Results

In its latest quarterly earnings, Ola Electric posted a consolidated net loss of Rs 418 crore, narrowing slightly from Rs 495 crore in the same period last year.

However, the company's revenue from operations fell a steep 43% year-on-year to Rs 690 crore, compared to Rs 1,214 crore in Q2 FY25.

The Bengaluru-based EV major delivered 52,666 electric two-wheelers during the quarter, because of weaker sales amid subdued demand.

Despite this, the company managed to achieve a positive auto EBITDA margin of 0.3%, marking a turnaround from -5.3% in Q1 FY26.

Margins and Cash Flow Under Pressure

Ola Electric led by founder and CEO Bhavish Aggarwal, reported an auto gross margin of 30.7%, expanding by 510 basis points (bps) sequentially, outperforming several internal combustion engine (ICE) two-wheeler companies.
Notably, this improvement came with only a 2% contribution from the Production Linked Incentive (PLI) scheme, highlighting operational efficiency gains.

Ola Electric also announced plans to reduce auto operating expenditure to around Rs 225 crore by Q1 FY27, while consolidating operations to bring total opex down to Rs 350-375 crore through technology-led efficiency improvements.

Market Reaction: Stock Slides 5% on BSE

Post the results announcement, Ola Electric shares declined sharply, hitting the 5% lower circuit limit at Rs 47.55.

About Ola Electric Mobility

Founded in 2017 by Bhavish Aggarwal, Ola Electric Mobility Ltd is one of India's largest electric vehicle (EV) manufacturers, headquartered in Bengaluru. The company focuses on building sustainable mobility solutions, with operations spanning vehicle design, battery cell manufacturing, software development, and charging infrastructure.
Ola's Futurefactory in Tamil Nadu is being considered as the world's largest two-wheeler EV manufacturing facility which will serve as the nerve center for its production. The company manufactures popular electric scooters such as the Ola S1 Air, S1 Pro, and S1 X, and has aggressively expanded its charging network across India. Despite facing initial challenges including battery fire incidents and supply chain disruptions Ola Electric is currently a key player in India's EV sector supported by strong investor backing from SoftBank, Tiger Global, and Ratan Tata