Ola Electric reported a consolidated net loss of Rs 362 crore in Q2 FY27. The loss narrowed from Rs 418 crore in the corresponding quarter last year.
However, revenue from operations declined 39 per cent year-on-year to Rs 421 crore. The company had reported revenue of Rs 690 crore in Q2 FY26, according to its regulatory filing.
The electric two-wheeler maker’s EBITDA loss widened to Rs 218 crore from Rs 203 crore. Meanwhile, gross margin declined to 29.93 per cent from 30.9 per cent.
In absolute terms, gross margin fell to Rs 126 crore from Rs 213 crore.
Ola Electric operating expenses decline
Ola Electric reduced operating expenses to Rs 369 crore during the September quarter. This compared with Rs 472 crore in the year-ago period.
The figure was also below the Rs 390 crore reported in Q1 FY27. However, the June-quarter figure excludes a one-time non-cash reversal of Rs 57 crore.
The company expects expenses to decline further as it completes its shift to dealer-led distribution. Consequently, it is reducing its dependence on company-operated retail outlets.
Dealer network to expand to 700 stores by March 2027
As of November 8, Ola Electric had 255 dealer partners operating 319 stores nationwide. The company aims to expand this network to around 450 stores by December 2026.
It plans to increase the total to 700 stores by March 2027. Furthermore, the company said wholesale orders and dealer dispatches had been increasing.
Repeat orders are also forming a growing share of demand, according to the company. Ola Electric said current demand exceeds supply.
However, it identified supply-chain expansion, rather than manufacturing capacity, as the primary constraint.
Production target set at 25,000 vehicles in December
Ola Electric said vehicle production had started increasing month-on-month after remaining largely stable. It expects monthly production to reach approximately 25,000 units in December.
Dealer inventory currently stands at around 15 days. However, some of the company’s oldest dealerships hold less than a week’s stock.
The company has also accelerated its transition away from direct-to-consumer retail operations. It stopped accepting orders through company-operated stores from November 1.
Most of these outlets are expected to close by December. Meanwhile, Ola Electric plans to route all new production through dealer partners.
