Ola Electric Q4 Results 2026 Highlights: EV maker’s net loss narrows 42.5% to ₹500 crore, revenue tanks 57%

1. Net loss narrows 42.5% YoY

Ola Electric reported a consolidated net loss of ₹500 crore in Q4FY26, compared with ₹870 crore in the corresponding quarter last year. The loss attributable to owners reduced significantly despite continued weakness in revenues.

2. Revenue declines 57% YoY

Revenue from operations for the March quarter stood at ₹265 crore, down 57% from ₹611 crore reported in Q4FY25 amid softer demand conditions in the electric two-wheeler market.

3. EBITDA loss improves sharply

EBITDA loss narrowed to ₹281 crore in Q4FY26 from ₹630 crore in the year-ago period, reflecting better operational efficiency and cost optimisation measures.

4. Gross margin expands to industry-leading levels

Consolidated gross margin improved to 38.5% in Q4FY26, compared with 34.3% in Q3FY26 and 13.7% in Q4FY25. The company said its gross margin profile is now ahead of most two-wheeler OEMs, including established ICE players.

5. Company flags near-term margin moderation

Ola Electric cautioned that gross margins may moderate in Q1FY27 and Q2FY27 due to commodity inflation and pricing measures aimed at driving growth amid geopolitical uncertainties. However, the company said it has sufficient margin buffers to maintain strong unit economics.

6. Q1FY27 order outlook remains strong

Based on current trends, the company expects Q1FY27 orders to be in the range of 40,000–45,000 units, nearly double the levels seen in Q4FY26.

7. Targets EBITDA and FCF positivity in FY27

The company expects its auto business to move towards adjusted operating EBITDA and free cash flow positivity during FY27, supported by stronger volumes, healthy gross margins and further reduction in operating expenses.

Based on current business trends, the company expects Q1FY27 orders to reach between 40,000 and 45,000 units, almost double the levels reported in Q4FY26. Management expects improving demand trends and operational efficiency to support a gradual recovery in business volumes.

As volumes increase, the company expects its auto business to move towards adjusted operating EBITDA positivity and free cash flow positivity during FY27. The transition is expected to be supported by stronger gross margins, lower operating expenses, disciplined working capital management, supplier ramp-up and better utilisation of existing manufacturing capacity.

The company achieved a major milestone in Q4FY26 by reporting its first quarter of positive operating cash flow, despite the period being relatively weak in terms of sales volumes. Consolidated cash flow from operations stood at ₹91 crore during the quarter.

The improvement was supported by production-linked incentive (PLI) inflows, stronger gross margins, lower operating expenses and tighter working capital management.

Meanwhile, consolidated free cash flow improved significantly to negative ₹131 crore. The development marks an important step towards sustainable financial improvement as the company aims to achieve stronger cash generation in the coming quarters.

At the same time, the Cell business continued to remain in investment mode as the company expanded Gigafactory operations and prepared for the next phase of battery cell and energy storage product launches. Management indicated that investments in the Cell segment remain crucial for long-term growth and technology leadership in the electric mobility ecosystem.

The company’s Auto business delivered strong financial performance during Q4FY26, generating cash flow from operations of ₹213 crore and free cash flow of ₹173 crore. The performance highlighted improving operational strength within the core automotive business.

Despite the strong margin performance in Q4FY26, the company cautioned that gross margins may moderate during Q1FY27 and Q2FY27. It attributed the expected pressure to rising commodity prices and pricing actions aimed at accelerating growth amid continuing geopolitical uncertainties.

However, the company maintained that it has adequate margin buffers to continue offering competitive pricing and stronger customer value propositions without compromising unit economics. Management said the company remains confident about maintaining financial discipline even as it focuses on increasing market share and supporting demand growth across its product portfolio.

Consolidated gross margin stood at 38.5% in Q4FY26, improving sharply from 34.3% in Q3FY26 and 13.7% in Q4FY25. The company said this margin profile is now among the best in the industry, outperforming several established two-wheeler OEMs, including traditional internal combustion engine (ICE) players.

The company reported a significant improvement in profitability during Q4FY26, with EBITDA loss narrowing to ₹281 crore compared with ₹630 crore in the corresponding quarter last year.

Meanwhile, its revenue declined 57% to ₹265 crore from ₹611 crore in the year-ago period. In the March quarter, its revenue was ₹470 crore.

Ola Electric posted a consolidated net loss of ₹500 crore, down 42.5% as against a loss of ₹870 crore in the same quarter last year. Meanwhile, in the last quarter (December quarter, Q3), the company's net loss was ₹487 crore.

In Q3 FY26, Ola Electric reported a consolidated net loss of ₹487 crore, improving from a loss of ₹564 crore recorded in the same quarter of the previous financial year. However, the company’s consolidated revenue from operations declined sharply by 55% YoY to ₹470 crore, compared with ₹1,045 crore in the year-ago period.

Earlier this month, Ola Electric said in a regulatory filing that its 4680 Bharat Cell-powered S1 X+ 5.2 kWh scooter received certification under the Central Motor Vehicle Rules, 1989 from the International Centre for Automotive Technology (ICAT), Manesar, which is a government-authorised testing agency.

The company said the certification marks a key milestone for its electric scooter portfolio, with the S1 X+ 5.2 kWh emerging as the longest-range model in Ola Electric’s mass-market lineup.

According to the company, the scooter delivers an IDC range of 320 km and a top speed of 125 km/h. The model is powered by an 11 kW mid-drive motor integrated with an MCU.

Ola Electric is expected to report weak Q4FY26 results, with revenue likely declining on a YoY basis primarily due to 62% drop in their volumes as per Vahan data, despite better ASP realisations driven by improved product mix and PLI benefits, said Abhinav Tiwari, Research Analyst at Bonanza.

He expects the company to continue reporting negative EBITDA, however, operational losses are likely to ease on account of lower provisions, ongoing cost optimisation measures, and increasing contribution from the Gen-3 platform.

As per VAHAN data, Ola Electric’s market share in the EV segment continued to decline sharply, falling from 10.8% in Q4FY25 to 3.1% in Q4FY26 amid rising competitive intensity, he added.

Ola Electric share price has fallen over 6% in one month, and has jumped more than 38% in three months. The EV stock has declined 12% in six months and has dropped 28% over the past one year.

Ola Electric Mobility shares still trade significantly below its listing and issue prices. The stock had made a flat stock market debut on 9 August 2025. Ola Electric shares were listed at par with their issue price at ₹76 apiece on NSE as against its issue price of ₹76 apiece.

Ola Electric’s net loss in Q4FY26 is expected to fall to ₹341 crore from ₹870 crore, while revenue to drop 38% to ₹378.7 crore from ₹611 crore, YoY, according to estimates by Ambit Capital. Volumes are expected to fall 53.2% to 24,062 units from 51,375 units. Realizations are expected to increase 32.3% YoY and 9.4% QoQ to ₹157,377 per unit. EBITDA loss is estimated to fall to ₹194.8 crore from ₹695 crore, YoY.

Ambit Capital expects Ola Electric’s volumes to have declined 53.2% YoY and 26.4% QoQ. It expects realizations to increase 9.4% QoQ, driven by e-bike and Gen-3 ramp-up. Margins are likely to improve on the back of gen-3 scale-up and GM stabilization.

Kotak Institutional Equities expects Ola Electric to reduce its EBITDA loss to ₹224.3 crore in Q4FY26 from an EBITDA loss of ₹695 crore in Q4FY25, driven by lower provisions, cost control measures, and higher mix of Gen-3 platform partly offset by negative operating leverage.

Volumes during the quarter ended March are estimated to decline 56.15% YoY to 22,528 units from 51,375 units.

Revenue in Q4FY26 is expected to fall 45% to ₹336 crore from ₹611 crore, YoY, driven by over 56% YoY decline in volumes.

Post the strong pullback of nearly 80% from the lows of ₹22.5 on March 30 to April 10, Ola Electric stock price has been consolidating within the ₹42 – ₹33.5 range.

The 20-day EMA has been acting as a dynamic support zone, with the stock repeatedly taking support near these levels. The RSI is currently hovering around the 60 mark. During this consolidation period, the RSI touched a high of 58.73 but failed to sustain above 60, indicating limited momentum. Meanwhile, the MACD line continues to remain below the zero line, suggesting that momentum is still lacking for a stronger upside move, said Sudeep Shah - Head of Technical and Derivatives Research at SBI Securities.

A decisive breakout on either side of the ₹42 – ₹33.5 range is likely to provide further directional cues, he added.