On a sequential basis, the company's loss increased 3% from ₹487 Cr
Operating revenue slumped 57% YoY and 44% QoQ to ₹265 Cr
For the full fiscal year FY26, Ola Electric's net loss shrunk by about 20% to ₹1,833 Cr from ₹2,276 Cr loss incurred last year
EV company Ola Electric
managed to trim its consolidated net loss in the fourth quarter of FY26 (Q4 FY26) by 43% to ₹500 Cr from ₹870 Cr in the year-ago quarter. However, on a sequential basis, the company’s loss increased 3% from ₹487 Cr.
Operating revenue slumped 57% YoY and 44% QoQ to ₹265 Cr. Including other income of ₹39 Cr, the company’s total income for the quarter stood at ₹304 Cr.
Revenue from the automotive segment fell about 57% YoY to ₹264 Cr. Meanwhile, revenue from the cell segment remained flat at ₹4 Cr.
The hefty decline in the automotive revenue came on the back of the company’s E2W deliveries shrinking by about 61% YoY to a mere 20,256 units, while orders stood at 22,522.
Ola Electric called Q4 a low-volume quarter. However, it claimed that its cash burn reduced significantly. Total expenses for the quarter declined 57% YoY to ₹546 Cr.
As a result, the company said that Q4 was its first operating cash flow positive quarter.
“Ola Electric delivered its first operating cash flow positive quarter in Q4 FY26, with consolidated CFO of ₹91 Cr, supported by PLI inflows, stronger gross margins, lower opex, and tighter working capital discipline. Consolidated FCF improved to -₹131 Cr,” it said.
For the full FY26, Ola Electric’s net loss shrunk about 20% to ₹1,833 Cr from ₹2,276 Cr in the previous year. Operating revenue halved to ₹2,460 Cr from ₹4,932 Cr in FY25.
“FY26 was a reset year for Ola Electric. We strengthened the fundamentals of the business across service, product quality, gross margins, operating costs, cash discipline, sales productivity, and cell manufacturing. Q4 showed the reset working: gross margin reached 38.5%, operating cash flow turned positive for the first time, service materially stabilised, and sales recovery began,” Ola Electric spokesperson said.
Meanwhile, the company’s auditors flagged a material concern around its cash flows and funding position. In the fiscal FY26, the company reported negative operating cash flows of ₹775 Cr. Although this improved from negative ₹2,391 Cr in FY25, the auditors said this requires the company to consider mitigating circumstances in order to support its operations and meet obligations.
The auditors highlighted that the company’s management reiterated that the business remains financially viable, citing existing cash reserves, expected improvement in operating cash flows, higher margins, new product launches, operational efficiencies, available credit lines, and ongoing talks with investors and lenders.
Besides, the auditors’ note also shared a key update on the company’s qualified institutional placement (QIP) plans. Ola Electric, which obtained shareholders’ approval for the fund raise, has appointed advisors, initiated active discussions with institutional investors and “substantially completed the investor engagement”, they said.
Notably, in October 2025, Ola Electric’s board approved a proposal to raise ₹1,500 Cr via various routes, including QIP. However, there has been no further update on this.
The proceeds from the proposed QIP are expected to strengthen the company’s liquidity and support ongoing capital expenditure and working capital requirements.
Here are the key points that Ola Electric highlighted in its shareholders’ letter:
While the company’s vehicle deliveries remained under pressure in the March quarter, the company saw improvements in demand over the past couple of months. After seeing registrations double month-on-month in March, Ola Electric recorded a 20% jump in registrations to 11,391 units in April.
Based on these, Ola Electric expects its Q1 FY27 orders to double sequentially to nearly 45,000 units. This, it said, will help its auto business move towards adjusted operating EBITDA and free cash flow positivity through FY27.
However, it expects margins to remain “moderate” in the ongoing and the next quarter compared to Q4 due to commodity inflation and pricing investments to accelerate growth, while maintaining strong unit economics.
“Ola Electric enters FY27 focused on scaling with discipline. The company’s priorities are to recover volumes, sustain service consistency, hold margin leadership, reduce opex, ramp the Gigafactory, transition the auto portfolio deeper into its own cells, and scale Shakti and Mahashakti,” it noted.
Shares of Ola Electric ended today’s trading session 0.96% higher at ₹36.94 on the BSE.
Edited by Vinaykumar Rai
Source: Inc42 - Startups
