Whalesbook
Ola Electric Mobility reported a substantial 57% year-on-year decline in revenue for the fourth quarter ending March 31, 2026, falling to Rs 265 crore from Rs 611 crore in the same period last year. Revenue also decreased by 43.6% sequentially from Rs 470 crore in the December quarter. Total income for the period was Rs 304 crore, down 58.2% from the previous year.
Financial Performance
Despite the revenue drop, Ola Electric narrowed its consolidated net loss to Rs 500 crore for the March quarter, an improvement from Rs 870 crore in the year-ago period. However, the net loss saw a sequential increase of 2.7% from Rs 487 crore in the December quarter. Total expenses for the quarter were Rs 546 crore, a year-on-year decrease of 58.2%. Employee benefits accounted for Rs 58 crore, while other expenses totaled Rs 325 crore.
For the full fiscal year 2026, revenue from operations was Rs 2,253 crore, marking a 50.1% decrease compared to FY25. The company's annual net loss reduced by 19.5% to Rs 1,833 crore. Ola Electric is pursuing additional capital through a proposed Qualified Institutional Placement (QIP).
Operational Wins
Ola Electric achieved its first operating cash-flow positive quarter, with cash flow from operations at Rs 91 crore. This positive result was driven by production-linked incentives, stronger gross margins, and efficient working capital management. Free cash flow improved, standing at a negative Rs 131 crore.
A key development was the significant expansion of consolidated gross margins, which rose to 38.5% in Q4 FY26 from 13.7% in the prior year. This gain is attributed to vertical integration, the maturity of its Gen 3 platform, and strict cost controls.
Service Improvements and Sales Growth
The company highlighted substantial improvements in its service operations, addressing previous customer concerns. The average service turnaround time dropped by 88% between October 2025 and March 2026, and service backlog days were reduced from 14 to six. Warranty costs saw a dramatic reduction, falling to Rs 59 crore in FY26 from Rs 555 crore in FY25.
Ola Electric's vehicle registrations in April increased by 20% month-on-month, reaching 12,166 units. This performance outpaced the broader electric two-wheeler market, which experienced a decline of over 22%. The company has set an ambitious goal to rebuild its national market share to between 15% and 20% within the next six months. For the first quarter of FY27, Ola Electric projects order volumes between 40,000 and 45,000 units, nearly doubling its Q4 volumes.