Ola Electric Reports 15% Net Loss Reduction in Q2 FY26, Automotive Segment Turns Profitable

Ola Electric has reported its financial results for the second quarter of the ongoing fiscal year (Q2 FY26), showing a significant reduction in its consolidated net loss. The loss was trimmed by over 15% to INR 418 crore, compared to INR 495 crore in the same quarter of the previous fiscal year. Sequentially, the net loss also saw a decline of 2.3%, falling from INR 428 crore in the preceding quarter.

However, the company experienced a substantial decrease in its revenue from operations, which fell by 43% year-on-year to INR 690 crore in Q2 FY26, down from INR 1,214 crore in Q2 FY25. Revenue also declined sequentially by 16.7% from INR 828 crore.

In line with the revenue contraction, Ola Electric managed to significantly cut its total expenses, which decreased by nearly 44% year-on-year to INR 893 crore in Q2 FY26, down from INR 1,593 crore in the previous year.

A key highlight of the results is that Ola Electric's automotive segment turned EBITDA positive during the quarter. It posted an EBITDA of INR 2 crore, a significant improvement from an EBITDA loss of INR 162 crore reported in the same quarter last year.

Impact: This news is important for investors tracking the Indian electric vehicle sector. While revenue decline is a concern, the reduction in net loss and, crucially, the automotive segment achieving EBITDA positivity indicate improved operational efficiency and potential for profitability. This could positively influence investor sentiment regarding Ola Electric's long-term prospects and its competitive positioning, particularly if the company plans for future public offerings. The efficiency gains could set a benchmark for other EV manufacturers. Impact Rating: 7/10

Difficult Terms: * Consolidated Net Loss: The total loss of a company after combining the profits and losses of all its subsidiaries and accounting for all expenses, taxes, and interest. * Fiscal Year (FY): A 12-month period used by governments and businesses for accounting purposes, typically from April 1 to March 31 in India. FY26 refers to the fiscal year ending March 31, 2026. * Margins: A measure of profitability that indicates how much profit a company makes from its revenue. For instance, improved margins mean the company is retaining more profit from each rupee of sales. * Sequentially: Comparing a financial period (like a quarter) to the immediately preceding period (the previous quarter), rather than to the same period in the prior year. * Revenue from Operations: The income generated by a company from its primary business activities, such as selling goods or providing services, excluding any other income sources. * YoY (Year-on-Year): Comparing a financial period to the same period in the previous year (e.g., Q2 FY26 versus Q2 FY25). * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance, indicating profitability before accounting for financing costs, taxes, and non-cash charges. * EBITDA Positive: When a company's EBITDA is a positive number, indicating that it is generating profit from its core operations before considering interest, taxes, depreciation, and amortization.