Ola Electric revenue falls 46% in Q2 FY26; controls losses

Ola Electric’s revenue continues its downward spiral with yet another sharp drop in the latest quarter. The EV maker’s revenue shrank by 47% year-on-year during the second quarter of FY26. At the same time, the Bengaluru-based firm’s losses widened by 23.3%.

Ola Electric's revenue from operations reduced to 660 crore in Q2 FY26, compared to Rs 1,214 crore in the previous year of the same quarter, its consolidated financial statements sourced from the National Stock Exchange (NSE) show.

Electric scooter sales remained the primary revenue driver for Ola Electric in the first quarter of FY26, while battery sales contributed only a marginal portion. Other income related to batteries and automobiles took the company’s total revenue of Rs 759 crore in Q2 FY26, down sharply from Rs 1,314 crore in the same quarter last year.

Procurement costs accounted for 40% of Ola Electric’s total expenses in Q2 FY26, standing at Rs 477 crore, according to the company’s disclosure on NSE. Employee benefits decreased sharply by 60% to Rs 55 crore in Q2 FY26. Overall, the company controlled its total expense by 35% to Rs 1,174 crore in Q2 FY26 from Rs 1,809 in Q2 FY25.

Small scale and controlled expenses helped Ola Electric to control its losses by 16% year-on-year to Rs 418 crore in Q2 FY26, compared to Rs 495 crore in the same quarter last year. On a half early basis, the company’s losses remained flat at Rs 846 crore in H1 FY26 as compared to Rs 842 crore in H1 FY25.

Ola Electric’s sales rebounded in October amid festive demand, posting nearly 20% growth with 16,034 registrations and capturing an 11.16% market share. However, its market share dropped sharply from around 30% a year ago.

Last month, Ola Electric approved a proposal to raise up to Rs 1,500 crore through a mix of equity and convertible securities. The development comes as Ola Electric goes through a phase of organizational restructuring and shifts in its shareholder base.

Following the release of its quarterly results, Ola Electric was trading at Rs 49 per share as of 10:47 AM on Thursday. The company’s market capitalization stood at Rs 21,877 crore ($2.5 billion).