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The electric two-wheeler maker’s revenue from operations fell 39% year-on-year (YoY) to Rs 421 crore from Rs 690 crore in the year-ago quarter.
On a sequential basis, the company’s net loss widened from Rs 336 crore in the June quarter, while revenue declined 7.5% from Rs 455 crore.
The company reported a consolidated gross margin of 29.93% in the September quarter, compared with 30.9% a year earlier and 30.5% in the June quarter.
Its adjusted operating EBITDA loss stood at Rs 246 crore, compared with Rs 258 crore a year earlier. However, the loss widened sequentially from Rs 195 crore. The adjusted operating EBITDA margin deteriorated to negative 58.5% from negative 42.8% in the preceding quarter.
The company’s free cash flow remained negative at Rs 371 crore, compared with negative Rs 351 crore in the June quarter.
In the automotive business, revenue declined to Rs 420 crore from Rs 688 crore a year earlier. However, the segment’s net loss narrowed to Rs 214 crore from Rs 233 crore.The company expects operating margins to improve as its dealer network expands, although gross margins could decline slightly during the second half of FY27 because of the transition.
Ola Electric said it has significantly reduced its borrowings following its qualified institutional placement and rights issue.
Total borrowings declined to Rs 1,819 crore in September 2026 from Rs 3,132 crore in December 2024. Borrowings in its automotive business fell sharply to Rs 337 crore from Rs 2,422 crore during the same period.
The company expects its automotive business to generate positive free cash flow in the near term, supported by lower debt, reduced operating expenses and an improving working capital cycle.
Under the new dealer model, dealers pay for vehicles when placing orders and hold inventory at their stores, reducing Ola’s working capital requirements.
Ola Electric also announced progress in its battery cell manufacturing business, saying it had achieved its scheduled commercial operation date for 6 gigawatt-hours (GWh) of manufacturing capacity.
The company said the government had extended its Advanced Chemistry Cell Production Linked Incentive (ACC PLI) scheme timeline to calendar year 2031.
Ola Electric said it has made significant progress in transitioning from its direct-to-consumer (D2C) retail model to a dealer-led distribution network, as the company looks to reduce operating costs and improve its working capital position.
In its shareholder letter, the company said it had appointed 255 dealer partners operating 319 stores as of November 8, 2026. It plans to expand the network to 450 stores by December and 700 stores by March 2027.
The company stopped accepting orders through its D2C stores on November 1 and expects to close most of these outlets by December.
Ola said the transition would help reduce operating expenses by another Rs 50 crore as company-operated stores shut down.
“Demand is no longer our constraint; supply is,” the company said in its shareholder letter, adding that the challenge lies in scaling up its supply chain rather than manufacturing capacity.
Ola said its production had started increasing after remaining broadly flat for several months. It expects to manufacture 25,000 vehicles in December.
The company produced 9,235 vehicles in August, 12,284 in September and 14,092 in October. It is targeting production of 20,000 vehicles in November. Ola also said deliveries of 5,000 vehicles with paid orders were delayed from September to October because of charger unavailability.
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