Ola Electric’s Revenue Decline in Q1 FY26

Ola Electric continues to witness a downward trend in its revenue, with a notable drop in the most recent quarter. The electric vehicle maker reported a year-on-year revenue reduction of nearly 50% for the first quarter of FY26. Concurrently, losses expanded by 23.3%.

According to consolidated financial statements acquired from the National Stock Exchange (NSE), Ola Electric’s revenue from operations fell to 828 crore in Q1 FY26, down from Rs 1,644 crore for the same quarter the previous year.

Revenue Sources for Ola Electric in Q1 FY26

In the first quarter of FY26, sales from electric scooters remained the dominant source of revenue for Ola Electric, while battery sales contributed only a minimal amount. The total revenue for the company reached Rs 896 crore in Q1 FY26, sharply declining from Rs 1,718 crore during the same period last year.

Expense Breakdown and Financial Analysis

Procurement expenses represented 58% of Ola Electric’s total expenditures in Q1 FY26, amounting to Rs 614 crore, as noted in the company’s disclosure on NSE. The overall quarterly loss increased to Rs 1,065 crore, attributed to higher spending on employee benefits, advertising, and technical support.

Impact on Losses and Share Performance

The contracting scale of operations led to an increase in Ola Electric’s losses by 23.3% year-on-year, reaching Rs 428 crore in Q1 FY26, compared to Rs 347 crore during the same quarter last year. However, when compared sequentially to Q4 FY25, losses narrowed by 50.8%, while revenue experienced a 35% quarter-on-quarter increase.

Market Reaction Post-Quarterly Results

Following the announcement of its quarterly results, Ola Electric was priced at Rs 39.95 per share as of 11:25 AM on Monday, marking a 52-week low. The company’s market capitalisation is currently at Rs 17,612 crore ($2.1 billion), representing a substantial 75.6% drop from its peak value of $8.1 billion in August of the previous year.