Ola Electric narrows loss to Rs 336 Cr in Q1, revenue falls 45%

Ola Electric, the electric two-wheeler maker, reported a smaller net loss of Rs 336 crore for the June quarter in its latest earnings release, compared to Rs 428 crore in the same period last year. However, overall revenue fell by 45% to Rs 455 crore, due to lower vehicle sales.

The company's founder and CEO Bhavish Aggarwal attributed the improved figures to the implementation of cost-cutting measures and streamlined operations. In response to the earnings, Aggarwal stated that Q1-27 marked the first quarter operating under the newly established operating model.

Vehicle deliveries decreased to 39,192 units in the June quarter, down from 68,192 in the previous year, but still higher than the 20,256 units delivered in Q4 FY26. Vehicle orders doubled to 44,071 units in the current quarter from 22,522 in the March quarter. Aggarwal targeted vehicle orders between 40,000-45,000 units and revenue between Rs 500-550 crore for Q1, nearly double the Q4 levels.

Despite the declines in sales, the company managed to reduce its operating expenses by 35% year-on-year to Rs 333 crore, leading to an operating loss of Rs 165 crore before interest, tax, depreciation, and amortisation, an improvement from the previous year's loss of Rs 237 crore. The gross margins improved to 30.5% in the June quarter, from 25.8% a year ago, whereas the operating Ebitda margins remained negative, at 42.8% in comparison to the previous quarter's 35.7%.

Aggarwal also mentioned that the integration of lithium iron phosphate (LFP) batteries into the company's portfolio is expected to further optimise product economics. Going forward, almost all of Ola Electric's auto business will transition to LFP-based batteries, with a portion of the higher-performance, top-end products remaining NMC-based.

The company's gigafactory is expected to become operational at a capacity of 6 gigawatt-hours by September, and the management anticipates capex to be around Rs 30-50 crore. In June, the firm raised Rs 780 crore through a qualified institutional placement (QIP). Aggarwal noted that as the customer base matures, services can potentially develop into a recurring high-margin revenue stream, with a target of service revenues of approximately Rs 400-500 crore by the years 2027-28.