EV maker Ola Electric narrowed its losses even as revenues and deliveries declined in the second quarter of FY27. Its net loss narrowed 13 per cent year-on-year (y-o-y) to ₹362 crore, down from ₹418 crore in the same quarter last year. However, revenue declined 39 per cent to ₹421 crore.
Deliveries fell to 34,667 vehicles in the second quarter, from 52,666 vehicles in the year-ago period.
Operating expenses stood at ₹369 crore, down from ₹390 crore in the first quarter, excluding a one-time non-cash reversal of ₹57 crore recorded in Q1.
The company is shifting to a dealer-led distribution model, having shut down most of its company-operated stores. Its first dealer stores went live on September 4. By November 8, the network had expanded to 255 dealer partners operating 319 stores. Ola Electric plans to increase this to around 450 stores by December and 700 by March 2027. All new production is now being routed through dealers.
The company said production, which had remained broadly flat for several months, is now increasing month on month. It expects to produce around 25,000 vehicles in December.
“Wholesales are ramping, and dealers are reordering, which has strengthened the flywheel. Demand is not our constraint; the constraint is the ramp-up of our supply chain,” the company said.
During the quarter, Ola Electric also raised funds through a qualified institutional placement (QIP). Its total borrowings declined from ₹3,132 crore in December 2024 to ₹1,819 crore in September 2026. Auto borrowings, specifically, fell from ₹2,422 crore to ₹337 crore over the same period.
The company added that it expects its battery requirements to comprise around 30 per cent nickel manganese cobalt (NMC) cells and 70 per cent lithium iron phosphate (LFP) cells. The focus remains on meeting its own automotive requirements. Ola noted that its NMC cell yields currently stood at 70-75 per cent and were expected to improve to 80-85 per cent by the end of Q3 FY27 and around 90 per cent in Q4 FY27.
With the growth in its automotive business, Ola Electric expects the segment to consume around 2-3 GWh of battery capacity in FY28.
Published on November 12, 2026
