Ola Electric shares extend decline; fell for the third consecutive session, while second-quarter sales fell 43%

Shares of pure-play EV giant Ola Electric fell as much as 4.4% to a low of Rs 45.50 per share on the NSE on Friday, November 7, after the company reported mixed numbers in the second quarter of FY26. With today’s decline, the stock has fallen 12% in just three days and is down for the third straight session. The electric two-wheeler maker’s consolidated net loss fell to Rs 418 crore, compared to a loss of Rs 495 crore in the same period a year ago. However, the company said total revenue from operations for the second quarter of FY26 stood at Rs 690 crore, reflecting a decline of 43% year-on-year compared to Rs 1,214 crore reported in the September 2024 quarter.

Ola Electric said it achieved its first automotive EBITDA profitability, supported by a gross margin of 30.7%, up 510 basis points quarter-on-quarter. Operating expenses decreased by approximately 52% compared to the previous quarter.Going forward, Ola expects its revenue mix to become more diversified and balanced in the coming quarters as its energy products expand. The company expects further improvement in gross margins, supported by higher volumes of its Gen 3 vehicles, deeper internal cell integration and continued cost optimization initiatives.

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For the second half of FY26, Ola is targeting total deliveries of around 100,000 units. It has set consolidated revenue for FY26 at a range of Rs 3,000 to 3,200 crore, reiterating that profitability will remain the key priority over aggressive volume growth. Within the automotive industry, gross margins in the fourth quarter are expected to be around 40%, while segment EBITDA will be around 5%. The company’s mobile business will also start generating revenue from Q4 FY26, both through inter-group delivery and third-party sales of Ola Shakti units. Gross margins for the segment are expected to stabilize at around 30% at the start of FY27 as volumes increase and production efficiencies increase. On the capital expenditure front, Ola has earmarked Rs 100-150 crore for its auto segment in the third and fourth quarters of FY26 and expects the company to be cash-flow positive by the end of FY26. Meanwhile, investments in the mobile sector will continue as the company moves towards completing the installation of its 5.9 GWh Gigafactory, funded mainly by project finance from the State Bank of India. Ola also plans to initiate the next phase of capacity expansion to 20 GWh in the first half of FY27, coinciding with the scaling up of its grid-scale energy offering and the integration of auto cell operations.

At around 9.45 am, the company’s shares were trading at Rs 46, down 3% from the last close on the NSE. Shares of Ola Electric Mobility are down 46% this year.

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