EV company narrowed its net losses for the quarter by 42 per cent to ₹500 crore in Q4FY26, compared with ₹870 crore in the corresponding quarter last year. However, the improvement in losses came amid a sharp decline in revenue and volumes during what the company described as a “year of reset”.
Revenue from operations fell 56 per cent year-on-year to ₹265 crore in Q4FY26, reflecting lower vehicle deliveries and weak sales momentum during the quarter. Ola Electric said Q4FY26 was a low-volume quarter as the company focused on service recovery, operational restructuring and cost rationalisation.
The company said April registrations rose to 12,166 units, up 20 per cent month-on-month, even as the broader electric two-wheeler industry declined by more than 22 per cent.
According to the company, the North and East markets continue to lead growth, driven by improving service levels in Uttar Pradesh, Bihar and West Bengal. Southern and western markets, including Karnataka, Maharashtra and Tamil Nadu, also saw gradual recovery.
“In auto, the core capex is already in place. We do not expect meaningful incremental auto capex in FY27,” the company said in an official statement, adding that the focus would now shift towards supplier ramp-up, factory utilisation, faster order-to-delivery conversion and rebuilding inventory buffers.
Based on current trends, Ola Electric expects Q1FY27 orders to be between 40,000 and 45,000 units, nearly double Q4 levels, signalling a possible recovery in demand and execution.
The company said it aims to move towards adjusted operating EBITDA and free cash flow positivity during FY27 through higher gross margins, lower operating expenses, and improved utilisation of existing manufacturing assets.
FY26 also marked a broader cost reset for the company. Consolidated operating expenses, including lease rentals, nearly halved to ₹428 crore in Q4FY26 from ₹844 crore a year earlier, driven by network rationalisation, lower overheads, and tighter control over sales and service costs.
Ola Electric expects quarterly operating expenses to further reduce to around ₹350 crore over the next few quarters.