Ola Electric Q1: Loss Narrows 22% YoY To ₹336 Cr, Revenue Plunges 45%

Ola Electric narrowed its Q1 FY27 net loss by 22% YoY to ₹336 Cr, while revenue declined 45% to ₹455 Cr.

The results indicate improving cost control despite weaker sales, with losses and expenses declining significantly.

Revenue rose 72% QoQ from ₹265 Cr, while total expenses fell 42% YoY to ₹620 Cr.

EV major Ola Electric managed to trim its net loss for the June quarter (Q1 FY27) by 22% to ₹336 Cr from ₹428 Cr in the year-ago quarter. On a sequential basis, loss declined 33% from ₹500 Cr. 

Operating revenue declined 45% to ₹455 Cr from ₹828 Cr in Q1 FY26. However, it rose 72% from ₹265 Cr on a QoQ basis. 

Including other income of ₹29 Cr, total income for the quarter stood at ₹484 Cr. 

Meanwhile, total expenses declined 42% YoY to ₹620 Cr.

In its shareholder letter, Ola Electric said Q1 FY27 marked the first full quarter after its operational reset in FY26. Orders nearly doubled sequentially to about 44,000 units, while registrations increased 97% QoQ, significantly outpacing the broader electric two-wheeler (E2W) market’s 17% growth. As a result, the company’s market share improved to 8.4% in Q1 FY27 from 5.1% in the preceding quarter. 

To note, Ola Electric saw an improvement in its monthly registrations in April and May before witnessing a slight decline in June. 

The sequential recovery also lifted the company’s automotive business, with automotive revenue rising 72% QoQ to ₹455 Cr and gross profit improving to ₹139 Cr. Despite higher commodity costs, Ola Electric maintained an automotive gross margin of 30.5%, according to the shareholder letter. However, it must be noted that the E2W revenue plunged 45% YoY from ₹826 Cr.

On the battery business, Ola Electric said its cell business is entering a more commercial phase. The company said its 6 GWh Gigafactory will become operational by September, while its 46100 LFP battery cell has received BIS certification and is vehicle-ready. The LFP cells will be progressively integrated into scooters below 4 kWh to improve affordability across its mass-market portfolio. 

In its earnings call, the company also announced that it will be launching its Shakti Gen 2 platform, with its LFP cells, on August 15, during its Mahashakti.

The battery segment’s revenue rose to ₹5 Cr in Q1 FY27 from ₹4 Cr in Q4 FY26 and ₹3 Cr a year earlier. The company also said it will launch its utility-scale battery energy storage system (BESS) platform, Mahashakti, on August 15, targeting renewable energy integration, industrial power, grid infrastructure and data centres. 

Earlier this week, Ola Electric signed an MoU with Hyderabad-based renewable energy company Axis Energy for the potential deployment of up to 20 GWh of battery energy storage systems by 2032. The agreement envisages annual deployments ramping up to 5 GWh from 2028.  

Ola Electric’s consolidated operating expenses declined 22% QoQ to ₹333 Cr. Ola Electric said it remains focused on achieving a steady-state operating cost base of about ₹300 Cr per quarter as it works towards operating breakeven. 

During the quarter, the company completed its ₹780 Cr QIP, which was oversubscribed by 56%. Ola Electric said the fundraise strengthened its balance sheet and provided additional financial flexibility to support future growth. 

The company also received a one-time benefit to its cost base from PLI-related levies, supported by a favourable government stance towards its cell business. 

“This reinforces the strategic importance of domestic cell manufacturing and aligns with the government’s broader priorities around localisation, self-reliance and building a strong indigenous battery ecosystem,” the company said.

Looking ahead, Ola Electric said it will expand its dealer-led distribution network to deepen its presence in Tier II cities, smaller towns and rural markets. The company said it has already received more than 1,200 expressions of interest from prospective dealer partners within 24 hours of announcing the initiative. 

The company also plans to monetise its installed base of more than one million customers by expanding its after-sales business. It expects service revenue to grow from about ₹130 Cr in FY26 to ₹400 Cr-₹500 Cr by FY28, with gross margins of around 65%. 

Shares of Ola Electric ended today’s trading session 0.92% lower at ₹41.07 on the BSE.

Source: Inc42 - Startups