Ola Electric’s Q2 revenue plunges as EV maker's two-wheeler sales halve YoY
Despite the revenue dip, Ola Electric narrowed its losses by about 15% in Q2, helped by extensive cost-cutting measures.
Ola Electric's revenue plummeted during the three months ended September 30, 2025 as it struggled with a narrowing market share and lower sales during this period.
The company reported a 43.1% decline in its second-quarter revenue from operations to Rs 690 crore compared to Rs 1,214 crore in the year-ago period. This decline in topline growth mirrored the company’s lingering trouble with slow demand for its electric two-wheeler sales.
During the three months ended September 30, the EV maker's sales declined by nearly half. The company sold only 47,753 units compared with 94,177 units sold during the same period last year.
However, despite the revenue slump, the company inched closer to its path to profitability, with a 15.5% decline in net losses for the period compared with the year-ago period. Ola Electric reported a net loss of Rs 418 crore during the second quarter compared with Rs 495 crore in Q2 FY25.
The Bhavish Aggarwal-led company managed to slash its expenses by 44% to Rs 893 crore across all segments, including cost of materials consumed, employee benefit expenses, and other expenses. Ola Electric undertook significant cost-cutting measures earlier this year, including the shutdown of its on-ground distribution networks and massive layoffs that affected over 1,000 employees
During this period, the EV maker, which was the largest in terms of sales up until late last year, saw peer Ather Energy inching closer in terms of two-wheeler sales. It eventually overtook Ola Electric for the first time in October to become the third-largest E2W in India, after TVS Motor Company and Bajaj Auto.
The firm, in the previous quarter, had said that it expected its auto EBITDA to turn positive. During the quarter, the company said it achieved auto segment profitability for the first time.
Share price of the EV maker has plunged 41.8% to Rs 50.06 year-to-date on BSE. After the results, the shares of the company were down 2% at Rs 49 apiece as of 11:44 AM IST.
Ola Electric expects lower volumes than it had forecasted during its first-quarter results, citing focus on margin and cash discipline in a competitive segment. For the second half of FY26, it expects deliveries of about 100,000 units.
The company, in its first quarter shareholder letter, had said it expected FY26 volumes to be between 3,25,000 and 3,75,000 units.
On a full-year basis, the company expects FY26 consolidated revenue of around Rs 3,000–3,200 crore. This is lower than the previously forecasted FY26 revenue of between Rs 4,200–4,700 crore.
Edited by Kanishk Singh