Ola Electric Faces Revenue Decline in Q2 FY27
Ola Electric has experienced challenging market conditions over the last eight quarters. In Q2 FY27, the electric vehicle maker reported a significant revenue decline of 39% compared to the previous year. Nevertheless, the Bengaluru-based firm successfully reduced its losses by 13% during this period.
Financial Performance Overview
According to the consolidated financial statements submitted to the National Stock Exchange, Ola Electric’s revenue from operations dropped to Rs 421 crore in Q2 FY27, down from Rs 690 crore in the same quarter last year. The automotive segment alone accounted for Rs 420 crore, while the cell business contributed Rs 3 crore before inter-segment eliminations amounting to Rs 2 crore.
EV Registrations and Income Details
During this quarter, Ola Electric achieved 41,650 EV registrations, reflecting a 17% decrease year-on-year. In addition to operational revenue, the firm recorded Rs 27 crore in other income, bringing the total income for Q2 FY27 to Rs 448 crore, compared to Rs 896 crore in the corresponding quarter last year.
Cost Management and Expenses
The decline in revenue coincided with a drop in procurement costs, which fell by 38% year-on-year to Rs 295 crore in Q2 FY27. However, the costs associated with employee benefits experienced an increase of 22%, rising to Rs 67 crore. Overall, Ola Electric’s total expenses diminished by 31% to Rs 810 crore from Rs 1,174 crore when compared to the same quarter of the previous year.
This is an evolving situation…