Ola Electric narrows quarterly loss as revenue falls sharply

Ola Electric’s latest quarter raised a sharper question than the narrower loss itself: is the company’s reset a genuine stabilization, or a softer label for shrinking demand? Revenue from operations fell 56.6% year on year to 265 crore rupees in the quarter ended March 31, even as the Bengaluru-based electric-scooter maker reduced its consolidated net loss to 500 crore rupees from 870 crore rupees a year earlier.

The improvement on the bottom line came from a deep pullback in spending. Total expenses dropped to 546 crore rupees from 1,306 crore rupees in the same quarter last year, while total income declined 58.2% to 304 crore rupees. Gross margins improved, and Ola said the quarter was its first operating cash-flow-positive period, with operating cash flow of 91 crore rupees, supported by production-linked incentive inflows, better margins, lower operating costs and tighter working-capital discipline.

For the full fiscal year, the numbers showed how difficult the turnaround remains. Revenue from operations fell 50.1% to 2,253 crore rupees, well below the company’s earlier guidance of 3,000 crore to 3,200 crore rupees. Annual net loss narrowed 19.5% to 1,833 crore rupees, but deliveries still reflected pressure on demand and execution, with 20,256 units sold in the quarter and 173,794 units for the year.

Ola’s own filings show a business that is still repairing its balance sheet while trying to rebuild growth. The company reported positive operating cash flow of 10,421 lakhs rupees for FY26, compared with negative operating cash flow of 11,620 lakhs rupees in FY25. Ola’s investor-relations archive lists the FY26 fourth-quarter earnings release, shareholders’ letter, KPI databook and financial results materials, underscoring how prominently management is pitching the year as a reset around service, product quality, gross margins, operating costs, cash discipline, sales productivity and cell manufacturing.

There were signs of a demand rebound in April 2026, when registrations rose 20% month on month to 12,166 units from 10,133 in March. That outpaced a broader Indian electric two-wheeler market that fell about 22% month on month to roughly 148,000 registrations. Ola said traction improved in Uttar Pradesh, Bihar and Madhya Pradesh, helped by its expanding EV portfolio, Roadster motorcycles and Bharat Cell-powered products.

Investors were not persuaded that the pain is over. Shares fell more than 5% on May 21, and Emkay Global kept a Sell rating with a target price of 25 rupees, implying more than 35% downside. For Ola, the near-term test is whether higher orders, which it expects to reach 40,000 to 45,000 units in the first quarter of FY27, can turn a cost-cutting quarter into durable revenue recovery.