Shares of Ola Electric are likely to remain in focus after the company reported a weak set of fourth-quarter results, marked by a sharp year-on-year decline in revenue despite a notable reduction in losses.
The electric vehicle maker posted Q4 revenue of ₹265 crore, down nearly 57% compared to ₹611 crore reported in the same quarter last year. The steep drop in topline reflects continued pressure on demand, rising competition in India’s electric two-wheeler market, and operational challenges during the quarter.
Despite the sharp decline in revenue, Ola Electric improved its profitability metrics on a yearly basis. The company reported a net loss of ₹500 crore in Q4, significantly lower than the ₹870 crore loss recorded in the corresponding period last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at a negative ₹281 crore compared to a negative ₹690 crore in the year-ago period, reflecting better operational efficiency and tighter cost controls.
In a letter to shareholders, Chairman and Managing Director Bhavish Aggarwal described FY26 as a “year of reset” for the company. He stated that the focus remained on strengthening the fundamentals of the business, including service quality, product quality, gross margins, operating costs, cash discipline, sales productivity, and battery cell manufacturing capabilities.
Despite Q4 being a low-volume quarter, the company highlighted several operational improvements. Gross margin improved to 38.5%, while operating expenses reduced materially during the year. Ola Electric also said cash burn declined significantly, service operations have stabilised, and sales recovery has started gaining momentum.
According to the company, April registrations increased 20% month-on-month even as the broader electric two-wheeler industry witnessed a decline of over 22%. Ola Electric further highlighted a major reduction in warranty costs, which fell to ₹59 crore in FY26 from ₹555 crore in FY25.
The company reiterated its long-term focus on electric mobility and battery manufacturing, with its Gigafactory expected to play a key role in India’s future energy ecosystem. Ola Electric plans to scale commercial cell manufacturing capacity towards 6 GWh in FY27 and deepen battery integration across its EV portfolio.
FY26 also marked Ola Electric’s expansion beyond electric scooters with the launch of its Roadster motorcycle platform, targeting India’s large motorcycle market where EV penetration remains relatively low.
Looking ahead, Ola Electric said its FY27 priorities include maintaining service consistency, scaling volumes with financial discipline, improving cash generation in the auto business, ramping up the Gigafactory, and expanding its energy storage initiatives through projects such as Shakti and Mahashakti.