Ola Electric's Q2 net loss narrows to Rs 362 crore YoY; stock climbs 4%

Ola Electric Mobility Ltd reported its September quarter (Q2 FY27) earnings on Thursday, with its net loss narrowing year-on-year (YoY), while revenue from operations declined.

The company's consolidated net loss narrowed to Rs 362 crore in Q2 FY27, compared with a loss of Rs 418 crore in the corresponding quarter last year. However, the loss widened on a quarter-on-quarter (QoQ) basis from Rs 336 crore in Q1 FY27.

Revenue from operations declined 38.99 per cent YoY to Rs 421 crore in the September quarter, compared with Rs 690 crore in the year-ago period.

Operating EBITDA loss stood at Rs 218 crore, against a loss of Rs 203 crore in the corresponding quarter last year.

Separately, addressing shareholders, Ola Electric said, "The QIP and rights issue strengthened our balance sheet, and we have deleveraged significantly. Total borrowings came down from Rs 3,132 crore in December 2024 to Rs 1,819 crore in September 2026."

The company added, "Specifically, Auto borrowings reduced from Rs 2,422 crore to Rs 337 crore. With low Auto debt, a healthy gross margin and cost structure, and a much-improved working capital cycle under the dealer model, we expect Auto to generate free cash flow in the near term."

Commenting on its cell business and growth prospects, the pure-play EV firm said, "The cell macro is also strong, with government focus on components and lithium refining, and growing storage deployments with higher localisation requirements. Through this transformation, our balance sheet is much more stable, our cost base is structurally and meaningfully lower, we are not demand constrained, and we have two long-term growth engines: Auto and Cell."

Ola Electric's earnings were announced after market hours on Thursday. Earlier in the day, the stock climbed 3.75 per cent to settle at Rs 35.73 on BSE.