⚡ Ola Electric Q2 FY2025-26 Results: Loss Narrows to ₹418 Cr, Revenue Slumps; Auto EBITDA Turns Positive — Full Breakdown, Table & Outlook

Ola Electric reported a mixed set of numbers for the quarter ended September 30, 2025 (Q2 FY26): losses narrowed, operating discipline improved, and the automotive unit delivered its first positive EBITDA—but revenue declined sharply year-on-year as volumes cooled and market share ceded ground to legacy rivals. Reuters+1

Below, we unpack the headline figures, compare them with Q1 FY26 and Q2 FY25, and put management guidance in context.

📊 Headline numbers (consolidated)

• Revenue (Q2 FY26): ~₹690 crore, down ~43% YoY (vs. ~₹1,214 crore in Q2 FY25). (Some trackers peg Q2 revenue closer to ₹660 crore; disclosures vary slightly by source.) Reuters+2mint+2

• Net loss (Q2 FY26): ₹418 crore, an improvement vs ₹495 crore loss in Q2 FY25. Reuters+1

• Auto EBITDA (Q2 FY26): +₹2 crore (₹20 million) — first positive at unit level. Reuters

For context on the immediate prior quarter:

• Q1 FY26 revenue: ₹828 crore, deliveries 68,192 units; auto EBITDA turned positive in June. Ola Electric+1

🧾 Comparison table — Q2 vs Q1 FY26 vs Q2 FY25

Why the range on revenue? Major financial publications and trackers reported ₹690 cr (Reuters/Livemint) and ₹660 cr (Entrackr) for Q2 FY26. The difference typically arises from classification of “other income” vs “revenue from operations.” We’ve highlighted the range and cited both. Reuters+2mint+2

🔍 What changed in Q2 FY26? The story behind the numbers

1) Topline pressure is real

Revenue fell ~43% YoY as sales volumes nearly halved and market share slipped materially versus last year, when Ola dominated the e-scooter category. Competitive intensity from Bajaj Auto and TVS Motor increased, while industry-wide demand normalization post-subsidy changes weighed on volumes. Reuters

2) But cost discipline is kicking in

Despite the top-line hit, net loss narrowed from ₹495 cr (Q2 FY25) to ₹418 cr (Q2 FY26). Reuters notes total expenses down ~44% YoY in the quarter, helped by operational resets and a tilt toward in-house cell efforts that begin to re-shape unit economics. Reuters

3) A milestone: automotive unit EBITDA turned positive

The auto segment posted positive EBITDA of ₹2 cr—symbolically small, but operationally important. It validates that at current price-cost configuration and production scale, the scooter business can cover direct operating expenses before corporate overhead and growth investments. Reuters

4) Q1 vs Q2 cadence

Q1 FY26 had ₹828 cr revenue and 68,192 deliveries, plus a first taste of positive auto EBITDA in June. Q2 saw sequential revenue decline and a demand mix that stayed softer than the year-ago festive build-up, underscoring that sustained profitability needs volume stability + richer mix (e.g., higher-end scooters, software/services attach). Ola Electric

🧠 Management guidance & near-term resets

• FY26 revenue forecast cut: Ola trimmed its FY26 top-line outlook to ₹3,000–3,200 crore (from ₹4,200–4,700 crore earlier), reflecting the demand slowdown and share loss, while retaining a 40% gross margin target for the auto business. Reuters

• Further opex control: The company aims to push operating expenditure down to ₹350–375 crore by the next quarter (Q3), continuing the cost-cut trajectory. Reuters

• Unit-economics first: With auto EBITDA barely positive, the focus is on scale, manufacturing yields, and battery cost curves—especially as in-house cell programs ramp. Reuters

🧩 How to read this quarter

Glass half full:

• Losses narrowed despite a tough sales environment—evidence that cost control and product cost-downs are working.

• Positive auto EBITDA is an inflection point for the core scooter P&L, even if small.

• Capital intensity around batteries (cells/packs) sets up medium-term margin leverage as localization rises.

Glass half empty:

• Revenue contraction is steep; volume share loss to established rivals is a strategic challenge.

• Profitability at consolidated level remains negative; marketing, R&D, and fixed corporate costs keep the bottom line in the red.

• The FY26 guidance cut acknowledges that a growth re-acceleration will take time.

🧾 Segment & drivers (what’s moving, what’s not)

1. Scooter volumes & mix
   Price-sensitive entry trims held up better than premium variants industry-wide. To expand contribution margin, Ola needs mix upgrade (higher-end models) and software/services attach (e.g., MoveOS+, connectivity plans). (Q1 commentary showed nearly 50% MoveOS+ adoption; sustaining monetization helps). Ola Electric

2. Battery cost curve
   Transition to in-house cell/battery is a multi-quarter lever. It can compress COGS, reduce vendor dependency, and stabilize gross margins—key to defending pricing in a crowded market. Reuters

3. Channel & service footprint
   As legacy OEMs scale, distribution density and after-sales reliability become decisive. Retention and word-of-mouth hinge on service uptime, not just upfront pricing.

4. Cash discipline
   Q1 narrative pointed to improving operating cash flow (FCF –₹107 cr per an investor recap). Extending that trend through H2 will be critical for self-funding growth. www.bajajfinserv.in

🧮 KPI watchlist for H2 FY26

• Monthly registrations / market share vs Bajaj & TVS (proxy for demand re-acceleration).

• Gross margin trajectory relative to the 40% auto GM target. Reuters

• Auto EBITDA staying positive (and scaling) through Q3–Q4. Reuters

• Operating expenditure run-rate vs the ₹350–375 cr guidance. Reuters

• Delivery mix (premium vs entry) and software subscription attach (MoveOS+). Ola Electric

🧭 Outlook: what could move the needle

1. Festival-season demand (Q3) + model refreshes: Even a modest lift in premium trims can swing contribution margins.

2. Cell localization ramp: Each percentage-point COGS improvement compounds at scale; this is the structural profitability lever. Reuters

3. Consumer credit & subsidies: Any improvement in financing availability or state-level incentives could unlock latent demand at the mass end.

4. Network & service SLAs: Closing experience gaps with incumbents is essential to boost repeat/referral sales.

🔚 Bottom line

Q2 FY26 is a discipline-over-growth quarter for Ola Electric. The company cut FY26 revenue guidance, held the gross-margin ambition, and delivered a symbolic—but important—positive auto EBITDA print. To convert this into sustained profitability, Ola needs a volume mix lift, continued COGS reduction via in-house cells, and tight opex control. For now, investors and watchers should track whether the Q3 festive window validates an early demand pickup and whether auto EBITDA stays in the black while the expense run-rate trends to guidance. Reuters