Ola Electric Reports Significant Revenue Drop but Auto Segment Turns Profitable

Ola Electric, the electric vehicle manufacturer, has reported a substantial drop in revenue for the second quarter of the fiscal year 2026 (FY26). The company's consolidated revenue from operations stood at Rs 690 crore, marking a significant decrease of 43.16% compared to Rs 1,214 crore recorded in the second quarter of the previous fiscal year (FY25).

Despite this revenue contraction, Ola Electric has made progress in controlling its expenses and improving its bottom line. The company's losses narrowed to Rs 418 crore in Q2 FY26, a notable improvement from the Rs 495 crore loss reported in Q2 FY25.

A key highlight from the financial results is the achievement of profitability in Ola Electric's auto segment for the first time. The gross margin for the auto business improved substantially to 30.7%. Furthermore, the auto segment reported a positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of 0.3%, a turnaround from a negative EBITDA of -5.3% in the first quarter of FY26 (Q1 FY26).

Impact This news could signal potential volatility for investors interested in the EV sector. While the revenue drop is concerning, the achievement of auto segment profitability indicates operational improvements and a potential path towards sustainable growth. This might influence investor sentiment towards the company and its future prospects, although Ola Electric is currently a privately held company. The overall EV market dynamics and competitive landscape will be crucial factors. Impact Rating: 6/10

Difficult Terms: Consolidated Revenue: The total revenue of a company and its subsidiaries after eliminating inter-company transactions. Year-on-Year (YoY): A comparison of financial data from one period to the same period in the previous year. Losses Contracted: The amount of financial loss has decreased. Gross Margin: The difference between revenue and cost of goods sold, expressed as a percentage of revenue. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. Positive EBITDA indicates operating profitability.