Shares of Ola Electric Mobility fell 4.44% to ₹29.52 on February 16 after the company reported a sharp year-on-year decline in revenue in its Q3 FY26 results, even as losses narrowed marginally.
The EV maker posted a consolidated net loss of ₹487 crore in the December quarter, compared to ₹564 crore in the year-ago period. However, on a sequential basis, losses widened from ₹418 crore in Q2 FY26, indicating continued pressure on profitability.
Revenue from operations dropped sharply by 55% year-on-year to ₹470 crore from ₹1,045 crore. Automotive segment revenue fell to ₹467 crore from ₹1,045 crore in the corresponding quarter last year, while the cell segment contributed around ₹9 crore.
Adjusted operating EBITDA loss narrowed to ₹323 crore compared to ₹494 crore a year earlier, reflecting some improvement in cost controls. However, the steep revenue contraction appears to have weighed heavily on investor sentiment.
The company stated that its manufacturing footprint currently supports 1 million vehicles and 6 GWh of cell capacity, targeting a long-term revenue potential of ₹15,000–20,000 crore over the next few years. It also acknowledged that service infrastructure and execution gaps impacted brand confidence, although it maintained that product quality remains intact.
The sharp revenue decline and continued elevated losses likely triggered selling pressure in the stock despite improvement in adjusted EBITDA.