Ola Electric Revenue Insights for FY26

Ola Electric’s revenue is experiencing a concerning decline, with a significant drop reported for the latest quarter. In the second quarter of FY26, the EV manufacturer’s revenue fell by 47% year-on-year. Concurrently, losses for the company increased by 23.3%. The revenue from Ola Electric’s operations decreased to 660 crore in Q2 FY26, compared to Rs 1,214 crore in the same quarter last year, as indicated by the consolidated financial statements available from the National Stock Exchange (NSE).

Revenue Drivers in FY26

Electric scooter sales remained the main driver of revenue for Ola Electric in the first quarter of FY26, while battery sales contributed only a small fraction. Additional income from batteries and automobiles brought the firm’s total revenue to Rs 759 crore in Q2 FY26, a notable decline from Rs 1,314 crore in the same quarter from the previous year.

Expense Overview for Q2 FY26

Procurement expenses accounted for 40% of Ola Electric’s total outlay in Q2 FY26, amounting to Rs 477 crore, according to the company’s report on NSE. Employee benefits saw a sharp decrease of 60%, dropping to Rs 55 crore in Q2 FY26. Overall, the company managed to reduce its total expenses by 35%, bringing them down to Rs 1,174 crore in Q2 FY26 from Rs 1,809 crore in Q2 FY25.

Mitigating Losses

Efficient expense management enabled Ola Electric to reduce its losses by 16% year-on-year, resulting in a loss of Rs 418 crore in Q2 FY26, compared to Rs 495 crore in the same quarter last year. On a half-yearly basis, losses remained relatively stable at Rs 846 crore in H1 FY26 compared to Rs 842 crore in H1 FY25.

Market Performance in October

Ola Electric saw a resurgence in sales in October, driven by festive demand, with nearly 20% growth and 16,034 registrations, leading to an 11.16% market share. However, this represents a significant decrease from approximately 30% a year ago.

Future Financial Plans

Recently, Ola Electric approved a plan to raise up to Rs 1,500 crore through a combination of equity and convertible securities. This strategic move comes as the company undergoes a period of organisational restructuring and changes in its shareholder composition.

Following the release of its quarterly financial results, Ola Electric’s shares were trading at Rs 49 as of 10:47 AM on Thursday, with a market capitalisation of Rs 21,877 crore ($2.5 billion).