NewKerala.com

Ola Electric Revenue Plunges 55% in Q3, Losses Widen Amid Stock Rout

Ola Electric's revenue from operations fell sharply by 55% year-on-year to Rs 470 crore in the third quarter of FY26. The company's losses also increased sequentially, reaching Rs 487 crore in the December quarter. This financial stress is mirrored in its stock performance, which hit a new 52-week low and has fallen over 50% in the past year. The company recently undertook layoffs affecting 5% of its workforce as part of a structural overhaul aimed at long-term profitability.

Key Points: Ola Electric Q3 Revenue Drops 55%, Losses Increase

  • Revenue from operations down 55%
  • Q3 loss widens to Rs 487 crore
  • Stock hits 52-week low, down 52% in a year
  • Material costs fall 74% YoY
  • Company laid off 5% of staff last month
2 min read

Ola Electric's revenue from operations drops 55 pc in Q3, losses up on-quarter

Ola Electric reports a 55% plunge in Q3 operating revenue to Rs 470 crore, with losses widening sequentially. Stock hits 52-week low.

"The company's total revenue also saw a significant decline in the December quarter, falling 56.99 per cent year-on-year"

Mumbai, Feb 13

Electric two-wheeler company Ola Electric on Friday reported 55.02 per cent decline in its revenue from operations to Rs 470 crore in Q3 FY26, compared to Rs 1,045 crore in the same period last fiscal.

The company's total revenue also saw a significant decline in the December quarter, falling 56.99 per cent year-on-year to Rs 504 crore, compared to Rs 1,172 crore in the same period last year.

Ola Electric continues to suffer losses. In the December quarter of FY26, the company reported a loss of Rs 487 crore, compared to Rs 564 crore in the same period last year.

The company's losses increased quarter-on-quarter. The company had incurred a loss of Rs 418 crore in the September quarter.

The company's expenses declined in the December quarter of FY26. The company's total expenses decreased by 50.76 per cent to Rs 741 crore in the October-December period, compared to Rs 1,505 crore in the same period last year.

The significant reason for the decrease in expenses is the lower cost of materials used in production. Material costs in the December quarter of FY26 were Rs 223 crore, a 74 per cent decrease from Rs 867 crore spent in the December quarter of FY25.

Ola Electric shares closed at Rs 30.9 on Friday, down 0.26 per cent. During the day, it hit a new 52-week low of Rs 30.41. The stock has delivered a negative return of 51.90 per cent over the past year. Since the beginning of this year, the stock has fallen 17.59 per cent.

Ola Electric, which has been facing difficulties, laid off employees last month. It stated that approximately 5 per cent of its employees will be affected as part of this ongoing structural change. The company further stated that it is focused on providing a superior customer experience and building a streamlined organization for long-term, profitable growth.

- IANS

Share this article:

Reader Comments

P
Priya S
As an early adopter of their scooter, I'm not surprised. The initial quality and after-sales service were quite poor. They expanded too fast without fixing core problems. Reducing material cost is good, but they need to focus on customer satisfaction first.
R
Rohit P
The stock is down 52% in a year! 😬 Feel bad for the retail investors who bought into the IPO hype. This is a classic case of valuation running far ahead of actual business fundamentals. A tough lesson.
S
Sarah B
The layoffs are the saddest part. Real people are losing jobs because of mismanagement. "Streamlined organization" sounds like corporate jargon for cutting staff to please investors. Hope the affected employees find new opportunities quickly.
V
Vikram M
Competition from Ather and TVS is fierce. Ola's aggressive pricing initially worked, but you can't sustain a business on discounts alone. They need a truly differentiated product now, not just marketing blitz.
K
Karthik V
Let's not write them off completely. The EV transition is a marathon, not a sprint. Many global EV companies have faced similar phases. If they can improve product reliability and service network, there's still a chance. Jai Hind!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50