Ola Electric Q2 revenue falls 43% on slowing sales

Ola Electric reported a 43% drop in revenue for Q2 FY26, with sales falling to 690 crore rupee (US$77.9 million) from 1,214 crore rupee (US$137.1 million) year-on-year.

The Bengaluru-based EV maker sold 47,753 vehicles in the quarter ended September 30, down from 94,177 during the same period last year.

Net losses narrowed by 15.5% to 418 crore rupee (US$47.2 million), as the company cut expenses by 44% to 893 crore rupee (US$100.8 million), after layoffs and the shutdown of its distribution network.

Ola Electric said it achieved profitability in its auto segment for the first time this quarter.

The company lost market share, with Ather Energy overtaking it in October to become India’s third-largest electric two-wheeler seller.

Shares of Ola Electric have fallen 41.8% year-to-date, and were down 2% after the results announcement.

The company now expects FY26 deliveries of about 100,000 units in H2 and full-year revenue of 3,000–3,200 crore rupee (US$338.7-US$361.3 million), lower than earlier projections.

🔗 Source: YourStory

🧠 Food for thought

Implications, context, and why it matters.

Ola’s “auto segment profitability” likely excludes warranty, service network, and corporate costs

Ola Electric says its auto business turned EBITDA positive in June 2025 1. That metric usually ignores warranty, service operations, and corporate overhead. Ola shut its distribution network and cut expenses by 44%, which can lift margins without fixing unit economics.
Deliveries fell 49% year-on-year to 47,753 while net losses narrowed 15.5%. That gap implies losses per vehicle at the consolidated level, and without clarity on whether warranty reserves, returns, or network costs sit outside the “auto segment” number, investors cannot judge if this milestone will last.
It secured Production-Linked Incentive (PLI) certification for the Gen 3 scooters, with profit tailwinds expected from Q2 fiscal year (FY) 2026 1, yet Q2 results still showed weaker revenue.

Independent service platforms can capture demand as owners seek alternatives

Multi-brand electric vehicle (EV) repair firms have a near-term opening. Ola earlier listed 870 Ola Electric Stores and 431 service centers across 23 states 2, and India logged about 2.1 million EV sales from July 2024 to June 2025 with electric two-wheeler penetration at 7.3% in June 2025 3.
Independent platforms should go where the company lost share. TVS Motors, Bajaj Auto and Ola Electric led electric two-wheeler (E2W) sales in June 2025 3. Ather Energy overtook it by October. Use EV Vahan Dashboard state data, the Indian government’s vehicle registration database, to place capacity 4.
Used EV outlets can benefit too. Ola’s revenue fell 43% and guidance is 100,000 deliveries for the second half (H2) of FY26. That may hurt resale, push owners to exit, and create supply for certified pre-owned marketplaces that serve price-sensitive buyers.