Ola Electric falls 6% as Q2 revenue drops 39%

OLAELEC Mobility Limited (OLAELEC) fell as much as 6.3% to an intraday low of ₹33.48 on November 13, after its Q2 FY27 results showed revenue falling 39% year-on-year to ₹421 crore, from ₹690 crore. The results came out after market hours on November 12, when the stock had closed 3.75% higher at ₹35.73. The consolidated net loss narrowed to ₹362 crore from ₹418 crore a year ago. But the operating EBITDA loss widened to ₹218 crore from ₹203 crore, and gross margin slipped to 29.93% from 30.9%. Goldman Sachs and Citi cut their FY27 estimates, citing weak volume growth, and management gave conservative full-year margin guidance. There is one real improvement. Ola has cut total borrowings to ₹1,819 crore from ₹3,132 crore in December 2024, using money raised through its QIP and rights issue. A stronger balance sheet gives the company more time to fix its operations. The narrower net loss hides a weaker business. It came from lower costs below the operating line, not from higher sales. Revenue fell sharply in a festive quarter, when two-wheeler demand is usually strongest. The EBITDA loss now equals about 52% of revenue, which means the company is still far from breaking even on its core operations. Without volume recovery, cost cuts alone cannot close that gap. Investors should watch monthly vehicle registrations and market share, gross margin trends, the EBITDA loss, and cash burn. The key question is whether Ola Electric can revive sales before its improved balance sheet runs out of room. Disclosure: I do not hold any position in Ola Electric Mobility Limited. This post is for informational purposes only and is not investment advice.