Ola Electric Shares Slide To Over Two-Month Low After Q2 Revenue Falls 43%

Shares of Ola Electric Ltd. slipped on Friday morning to hit over two-month low after reporting its second-quarter numbers, which saw the electric vehicle manufacturer report a 43% decline in revenue at Rs 690 crore from Rs 1,214 crore reported in the previous fiscal.

The intraday trading saw the stock slip 4.35% and hit a low of Rs 45.50.

Ola Electric Mobility's second quarter fiscal 2026 reported a net loss of Rs 418 crore, which is an improvement from the Rs 495 crore loss in the same quarter last year. However, their revenue took a hit, dropping 43% year-over-year to Rs 690 crore from Rs 1,214 crore.

The Indian electric-scooter maker also slashed its full year sales and revenue targets.

The Bengaluru-based company’s has revised its second-half sales expectations to about 100,000 vehicles, bringing its full-year estimate to about 221,000 units more than 40% below its earlier projection of 325,000–375,000, according to a letter to shareholders.

The revenue for the full-year ending March 31 is now guided at 30 billion to 32 billion rupees ($360 million-$385 million), down from a prior forecast of 42 billion to 47 billion rupees issued in the first quarter.

The downgrade following the company’s fifth straight quarterly loss since listing in 2024 reflects what Ola called a "disciplined approach" amid intensifying competition in India’s electric two-wheeler market.

Despite the weaker volume outlook, Ola Electric said its automobile business turned profitable in the quarter ended September 2025 with pre-tax earnings growing by 0.3% against a contraction of 5.3% in the preceding three months.

The positive EBITDA (earnings before interest, taxes, depreciation and amortisation) of 0.3% in July-September marks the company's first quarter of EBITDA profitability, Ola Electric said in a statement.

The company also announced that its auto gross margin expanded sequentially by 510 basis points to 30.7% higher than most ICE (conventional engine) two-wheeler companies, with minimal PLI contribution of 2%.

The company's consolidated revenue from operations in July-September quarter stood at Rs 690 crore with total deliveries of 52,666 vehicles during the period.

The company expects auto opex to decline to around Rs 225 crore by Q1 of FY27, with consolidated operating expense targeted at Rs 350-375 crore through operational consolidation and technology-driven efficiencies.

On a full-year basis, the company now expects FY26 consolidated revenue of around Rs 3,000-3,200 crore, with new Ola Shakti volumes beginning in Q4 to grow and diversify the top line.