Ola Electric reported its lowest consolidated net loss in seven quarters at ₹336 crore for the quarter ended June 2026 (Q1FY27), helped by a sharp reduction in operating expenses, even as revenues fell by 45% year-on-year to ₹455 crore due to poor vehicle sales.

Consolidated operating expenses fell 35% year-on-year to ₹333 crore, helping the company reduce its operating EBITDA loss to ₹165 crore from ₹237 crore in the same quarter last year. The EBITDA loss was broadly in line with the Bloomberg estimate of ₹166 crore, while the net loss came in lower than analysts’ estimate of ₹385 crore.

Revenue, however, missed the Bloomberg estimate of ₹568 crore and also fell short of the company’s own guidance of ₹500-550 crore. Ola Electric had guided for 40,000-45,000 vehicle orders in Q1FY27 but reported 44,071 orders. Actual deliveries dropped nearly 70% year-on-year to 39,192 units.

The company said the June quarter was the first full quarter after its FY26 reset and marked its transition from restructuring to disciplined scale. On a sequential basis, vehicle registrations nearly doubled to 43,921 units, while market share expanded to 8.4% from 5.1%.

Gross profit, measured as revenue less cost of goods sold, declined to ₹102 crore from ₹214 crore a year earlier. However, gross margin remained above 30%, supported by the integration of the company’s in-house developed battery cells into its vehicles. 

Bhavish Aggarwal, Founder, Chairman and Managing Director of Ola Electric, said electric scooters, motorcycles and energy storage products will pick up in the coming quarters as it announced its expansion into the dealership model without relying only on company-owned stores.  Aggarwal said the company has received more than 1,000 dealership enquiries since announcing the move but declined to provide guidance on the pace of dealer onboarding.

He also said that most service-related challenges have been addressed and that pending issues related to spare parts availability would ease as the dealer network expands.  Ola Electric expects its after-sales service business to emerge as a recurring, high-margin revenue stream. The company aims to increase service revenue from around ₹130 crore in FY26 to ₹400-500 crore by FY28.

The company’s cell business continued to remain subdued, reporting revenue of just ₹5 crore during the quarter compared with ₹4 crore and ₹9 crore in the previous two quarters. The segment includes the home battery storage business under Ola Shakti and to-be launched Ola Mahashakti platform for industrial, commercial and utility-scale energy storage applications.

Aggarwal said the company scaled back after selling a few hundred home storage devices in order to pivot towards low-cost LFP-based cell products from the current NMC-based offering.

Mahashakti, Ola Electric’s planned utility-scale energy storage business, is scheduled to be formally launched on August 15. The platform will target utility-scale storage, commercial and industrial (C&I) installations, and grid-scale battery energy storage systems. It has recently signed an MoU with Axis Energy to deploy up to 20 gigawatt-hours (GWh) of battery energy storage systems by 2032.

“We have also been talking to companies across the spectrum to use our cell in their products,” Aggarwal  said, adding that the company has received encouraging responses from global OEMs as well as domestic manufacturers, especially in the drone sector.

The company expects revenue from the cell business to begin reflecting meaningfully from the third or fourth quarter of the current financial year.