Ola Electric Q3 Results: Net Losses Widen QoQ; Check the Revenue Segmentation

Synopsis: EV stock slipped nearly 7% after Q3 revenue plunged 55% YoY. Net loss narrowed annually, sequential losses and rising cash burn, along with margin pressure, dampened investor sentiment.

A small-cap company, primarily engaged in manufacturing of electric vehicles and core components for electric vehicles., has come into the spotlight after its shares fell by 7 percent, attracting attention from investors and market watchers.

With a market capitalization of Rs. 12,861.98 crore, the shares of Ola Electric Mobility Limited were trading at Rs. 29.16, down by 5.60 percent from its previous day’s closing price of Rs. 30.89 per equity share. The stock has touched intraday low of Rs. 28.81, implying decline of 6.7 percent from previous day’s closing price. 

Q3FY26 Results

The company reported revenue of Rs. 470 crore in Q3FY26, reflecting a sharp 55.0 percent year-on-year (YoY) decline compared to Rs. 1,045 crore in Q3FY25. On a quarter-on-quarter (QoQ) basis, revenue also fell 31.9 percent from Rs. 690 crore in Q2FY26, indicating continued weakness in topline performance both annually and sequentially.

EBITDA stood at a loss of Rs. 271 crore in Q3FY26, from a loss of Rs. 460 crore in Q3FY25. However, on a QoQ basis, losses widened compared to a loss of Rs. 203 crore in Q2FY26, suggesting operating pressure during the quarter.

Net loss narrowed to Rs. 487 crore in Q3FY26, showing an improvement from a loss of Rs. 564 crore in Q3FY25. Sequentially, however, losses widened from Rs. 418 crore in Q2FY26, reflecting a deterioration in bottom-line performance compared to the previous quarter.

Cash flow from operations remained negative at Rs. 575 crore in Q3 FY26, worsening sequentially from negative Rs. 255 crore in Q2 FY26 but improving significantly from negative Rs. 851 crore in Q3 FY25. Free cash flow stood at negative Rs. 781 crore, compared to negative Rs. 405 crore in the previous quarter and negative Rs. 1,076 crore a year ago, reflecting continued cash burn on a quarterly basis but a notable improvement year-on-year.

Revenue Segmentation

The automotive segment reported revenue of Rs. 467 crore, declining 55.3 percent YoY from Rs. 1,045 crore and 32.1 percent QoQ from Rs. 688 crore. Adjusted operating EBITDA loss narrowed to Rs. 167 crore from Rs. 373 crore in Q3 FY25 but widened from Rs. 102 crore in Q2 FY26. The adjusted EBITDA margin stood at -35.8 percent, largely flat YoY at -35.7 percent, but significantly weaker compared to -14.8 percent in the preceding quarter, indicating sequential margin pressure despite annual improvement.

Revenue from the cell segment rose to Rs. 9 crore, up from Rs. 3 crore in Q3 FY25 and Rs. 4 crore in Q2 FY26, reflecting scaling up of operations. However, adjusted operating EBITDA loss widened to Rs. 39 crore compared to losses of Rs. 8 crore YoY and Rs. 27 crore QoQ. The adjusted EBITDA margin deteriorated sharply to -228.5 percent, versus -29.6 percent YoY and -100.0 percent QoQ, highlighting higher costs associated with ramp-up.

Management Commentary

An Ola Electric spokesperson stated that Q3 FY26 marked a structural reset, with focus on improving service execution, optimizing cost structures, and deepening vertical integration. The company highlighted a leaner operating model, lower breakeven levels, and industry-leading gross margins, adding that stabilizing service metrics and the transition of its Gigafactory to commercial scale position it for improved operating leverage in the next growth phase.

Ola Electric Mobility Limited is engaged in the development, manufacturing, and sale of electric vehicles in India, operating across two key segments; Automotive and Cell. The company primarily produces electric scooters and also manufactures critical EV components, including battery packs, motors, vehicle frames, and cells. In addition, it provides charging solutions and runs service centers to support its customers. Incorporated in 2017, the company is headquartered in Bengaluru, India.

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