Ola Electric Q3 Results: Loss Narrows YoY to Rs 487 Crore; Revenue Falls 55%

Why It Matters

The narrowing loss shows progress in cost discipline, but the sharp revenue and delivery drop underscores challenges in EV adoption and service execution, affecting market confidence. This restructuring will shape Ola’s competitive position in India’s fast‑growing electric‑vehicle market.

Key Takeaways

• Q3 loss narrowed to Rs 487 crore YoY.
• Revenue fell 55% to Rs 470 crore.
• Deliveries dropped to 32,680 units, down from 84,029.
• Capex Rs 5,300 crore; gigafactory completes March 2026.
• Service gaps noted; 90% product satisfaction retained.

Pulse Analysis

India’s electric‑vehicle market is entering a pivotal phase, with policy incentives and consumer awareness driving demand, yet infrastructure and service quality remain critical bottlenecks. Ola Electric, once the sector’s fastest‑growing startup, now faces a market where penetration rates have slowed and rivals such as Tata Motors and Mahindra are scaling up their EV line‑ups. The company’s recent financials reflect this shift: a 55% revenue contraction and a 62% drop in unit deliveries signal that volume growth is no longer automatic, even for a brand with strong name recognition.

Against this backdrop, Ola’s strategic reset focuses on tightening its cost structure and leveraging a massive capital outlay. The Rs 5,300 crore investment, largely directed toward a new gigafactory and battery‑R&D, positions the firm to produce up to one million vehicles and 6 GWh of cells annually. While the capex phase is winding down, the improved adjusted EBITDA loss—from Rs 494 crore to Rs 323 crore—demonstrates that operating leverage is beginning to materialise. The company’s emphasis on fixing fundamentals rather than chasing short‑term volume suggests a move toward a sustainable, lower‑breakeven business model.

Looking ahead, analysts will watch whether Ola can translate its manufacturing capacity into the projected Rs 15‑20 trillion revenue horizon. Success hinges on resolving service‑execution gaps that have eroded brand trust, despite a 90% product‑satisfaction score. If the firm can align its expanded footprint with reliable after‑sales support, it could reclaim market share and set a benchmark for scale‑driven EV economics in India. Investors, meanwhile, will weigh the short‑term revenue dip against the long‑term upside of a more resilient operating model.

Ola Electric Q3 Results: Loss narrows YoY to Rs 487 crore; revenue falls 55%

Ola Electric Q3 Results: Loss narrows YoY to Rs 487 crore; revenue falls 55% · Akash Podishetti, ETMarkets.com · Feb 13 2026, 04:18 PM IST

Article

Ola Electric narrowed its losses in the December quarter to Rs 487 crore, compared with Rs 564 crore in the same quarter of the previous fiscal year. The company's revenue from operations fell 55 % year‑on‑year (YoY) to Rs 470 crore.

“Q3FY26 marks a structural reset for Ola Electric. As EV penetration growth has slowed and our service execution has required strengthening, we chose to realign our retail footprint, cost structure, and operating model to a sustainable steady state by fixing the fundamentals and not optimising for short‑term volume. The result is a structurally lower volume breakeven business with significantly improved operating leverage,” the company said in a release.

Adjusted operating EBITDA losses reduced to Rs 323 crore in the third quarter from Rs 494 crore a year ago. Revenues from the automotive segment fell sharply to Rs 467 crore from Rs 1,045 crore in the last‑year period. The cell segment recorded revenues of around Rs 9 crore.

The big miss was on the deliveries front, where total units sold during the quarter slumped to around 32,680 from 84,029 in the previous year quarter.

Investment and Capex

The company has invested Rs 5,300 crore across manufacturing infrastructure, battery innovation, and R&D platforms. “This scale of this investment towards EVs is unmatched among Indian OEMs and is a very strong structural advantage over competitors,” Ola said.

The company further said the heavy capex phase is largely behind, with the Gigafactory final phase completion by March 26. “Our current manufacturing footprint supports 1 million vehicles and 6 GWh of cell capacity. The focus is now on growing into this revenue potential of Rs 15,000‑20,000 crore over next few years,” it added.

Service Execution

Ola has acknowledged that service execution gaps impacted brand trust for prospective customers. “These were service infrastructure and execution issues and not product quality issues. Customer trust and preference for our product remains strong, as indicated by an independent third‑party survey showing 90 % overall product satisfaction and high repurchase intent.”

On Friday, Ola Electric shares closed 0.1 % lower at Rs 30.92 on NSE.

Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.