Ola Electric’s Q2 Revenue Drops 43%, But Auto Segment Turns Profitable

Ola Electric reported a 43.16% YoY decline in revenue to ₹690 crore for Q2 FY26, down from ₹1,214 crore in the same quarter last year, amid a steep drop in sales. Its electric scooter deliveries fell 46% YoY to 52,666 units, and October 2025 Vahan data shows it slipped to 5th position in monthly sales with just 6,335 units—behind Bajaj, TVS, Ather, and Hero. Despite the revenue slump, the company recorded a positive turnaround: net loss narrowed to ₹418 crore (from ₹495 crore in Q2 FY25), and its auto business turned EBITDA profitable for the first time, posting a 0.3% EBITDA margin—a sharp improvement from -5.3% in Q1 FY26. Gross margins rose to 30.7%, signaling better cost control and operational efficiency. The results reflect a challenging competitive landscape, as legacy players gain share, but also highlight progress in Ola’s path to sustainability. While top-line recovery remains a challenge, the shift toward profitability marks a critical milestone in its journey.