Ola Electric's revenue falls 39%, net loss narrows as supply constraints hit production

Résumé détaillé

Ola Electric Mobility reported a 39 percent revenue decline to ₹421 crore for Q2 FY27, while net loss narrowed to ₹362 crore amid its dealer transition.

Ola Electric Mobility reported a 39% year-on-year decline in revenue to ₹421 crore in the second quarter of FY27, from ₹690 crore a year earlier.

The company's net loss narrowed to ₹362 crore from ₹418 crore. However, its operating loss, measured by EBITDA, widened to ₹218 crore from ₹203 crore in the year-ago quarter.

Gross margin stood at 29.93%, compared with 30.9% a year earlier. In value terms, gross margin fell to ₹126 crore from ₹213 crore.

Operating expenses declined to ₹369 crore from ₹472 crore in the year-ago quarter. They were also lower than the ₹390 crore reported in the first quarter of FY27, excluding a one-time, non-cash reversal of ₹57 crore in that quarter.

Ola Electric expects operating expenses to fall further as it completes the shift of its retail network to a dealer-led model.

The company said 255 dealer partners were operating 319 stores as of November 8. It plans to expand the network to about 450 stores by December 2026 and 700 by March 2027.

Wholesale orders and dispatches to dealers have increased, with repeat orders accounting for a growing share, the company said. It added that demand was outstripping supply and that it could sell every vehicle it produced. The current constraint was the pace at which its supply chain was scaling up, rather than its manufacturing capacity.

Production, which had remained broadly flat for several months, is now rising month by month. Ola Electric expects to produce about 25,000 vehicles in December. Inventory at dealer outlets stood at around 15 days, while some of its oldest stores had less than a week's worth of stock.

The company has shut most of its directly operated stores and is routing all new production through dealers. It stopped taking orders through its direct-to-consumer outlets on November 1, with most of these stores expected to close by December.

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