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Ola Electric Revenue Drops, Focuses on Recovery
Ola Electric, led by Bhavish Aggarwal, faced a challenging fiscal year 2026, which the company described as a "reset year." This period centered on stabilizing operations, boosting profit margins, and rebuilding customer confidence after a period of slower sales and heightened regulatory attention. The electric vehicle maker reported consolidated revenue from operations of Rs 265 crore for the fourth quarter ending March 31, 2026. This is a significant drop from Rs 611 crore in the same quarter last year. For the full fiscal year, total revenue was Rs 2,253 crore.
Quarterly vehicle deliveries fell to 20,256 units in Q4 FY26, down from 32,680 units in the previous quarter and 68,192 units in Q1 FY26. Despite lower sales, Ola Electric reported its first operating cash flow positive quarter. Consolidated operating cash flow for Q4 FY26 was Rs 91 crore, supported by production incentives, improved gross margins, lower operating expenses, and tighter working capital management.
Improving Margins and Cutting Costs
Ola Electric's consolidated gross margin rose to 38.5% in the fourth quarter, a large improvement from 13.7% a year earlier. Operating expenses were cut significantly, falling to Rs 428 crore in Q4 FY26 from Rs 844 crore in the same quarter last year. A company representative stated that FY26 was focused on strengthening business fundamentals, including service, product quality, gross margins, operating costs, cash management, sales efficiency, and cell manufacturing. The representative added that the latest quarter showed these efforts were effective, with service metrics improving, margins growing, and sales starting to recover.
Service Improvements and Market Growth
Service metrics saw notable improvements after being a key concern for much of FY26. The average service turnaround time dropped from about nine days in October 2025 to nearly one day by March 2026. Same-day service completions improved to nearly 87%. Ola Electric also noted strong growth in its electric motorcycle segment, now holding a 50% market share. Motorcycles represented 15% of gross orders in April, with models offering ranges up to 500 km. The company's battery manufacturing division generated minimal revenue, just Rs 4 crore in the quarter. However, Ola Electric's "Bharat Cell" program is moving from development to commercial production, with its gigafactory at 2.5 GWh capacity and an expansion to 6 GWh nearing completion.
Full-Year Loss and Funding Plans
For the full fiscal year, Ola Electric reported a net loss of Rs 1,833 crore. Quarterly losses reduced to Rs 500 crore in Q4 FY26 from Rs 870 crore a year ago, due to lower spending and cost-cutting measures. Despite operational gains, the company's latest financial results highlight ongoing financial pressures, with operating cash flow for the full year remaining negative at Rs 775 crore. Ola Electric is reportedly planning to raise more capital through a qualified institutional placement, after reallocating some of its initial public offering (IPO) funds to improve liquidity.