Ola Electric on Friday reported a net loss of Rs 487 crore in the third quarter of the financial year 2025-26 (Q3FY26), down from the Rs 564 crore loss reported in the same quarter last fiscal. While losses narrowed on an annual basis, they widened on a sequential basis. Ola Electric had posted a loss of Rs 418 crore in the September 2025 quarter (Q2FY26).
The electric two-wheeler maker’s revenue from operations fell 55% year-on-year to Rs 470 crore in Q3FY26 from Rs 1,045 crore in Q3FY25. The fall in revenue can be attributed to a sharp drop in volume as the company's scooter sales nosedived to 32,680 units in Q3FY26 from 84,029 units during the same period last year.
Commenting on the performance, Ola Electric Co-founder and CEO Bhavish Aggarwal said, “Q3 FY26 marks a structural reset for Ola Electric. As EV penetration growth moderated and service execution required strengthening, we made a deliberate choice - fix the fundamentals, not chase short-term volume."
He added, “We realigned our retail footprint, strengthened our cost structure, and redesigned our operating model for sustainable growth. The result is a structurally lower breakeven business with significantly improved operating leverage.”
The company’s Q3FY26 results come at a time when its market share has come down to single digits. The Bhavish Aggarwal-led company, which was the leader in the e-2W market in 2024 with a 35.5% share, saw its market share fall to a little over 15% in 2025. In January, Ola Electric’s sales plummeted to 7,516 units and its market share dwindled to 6% over increased competition and service-related concerns among buyers.
Aggarwal stated that they delivered a record 34.3% consolidated gross margin in Q3, the highest in the electric two-wheeler industry, expanding 15.7 percentage points YoY and 3.4 percentage points QoQ. He expects gross margins to stabilise in the 35-40% range in FY27.
“Over the past few years, we have invested approximately Rs 5,300 crore across manufacturing infrastructure, battery innovation, and R&D…With Gigafactory scaling toward 6 GWh by March’26 and capacity for 1 million vehicles already in place, the focus shifts from building capacity to scaling into it,” said Aggarwal.
He added that the company’s recovery plan is simple and disciplined: restore trust through service stabilisation, reinforce product superiority in range, performance and value, and activate their installed base of nearly 11 lakh customers, the largest in the Indian EV ecosystem.
“With a structurally reset cost base and 85–90% of opex fixed, incremental volume recovery will directly translate into profitability…We have reduced the EBITDA breakeven to approx. 15,000 units per month and embedded operating leverage into the business. The heavy build phase is behind us,” said Aggarwal.
Ola Electric shares closed marginally lower at Rs 30.92 apiece on Friday. In the last one year, the stock is down 52% and YTD it has declined 18%.