Ola Electric narrowed its losses in the March quarter as the company aggressively cut costs, even though revenue continued to decline amid slowing electric scooter demand and intensifying competition. The Bhavish Aggarwal-led firm reported a net loss of Rs 500 crore for the January-March period, compared to a loss of Rs 870 crore in the same quarter last year. Sequentially, losses edged slightly higher from Rs 487 crore in the December quarter.
Cost Reduction Initiatives Drive Improvement
Total expenses nearly halved year-on-year to Rs 546 crore from Rs 1,306 crore. The cost of materials consumed dropped sharply to Rs 124 crore from Rs 350 crore a year earlier, while employee benefit expenses also declined to Rs 58 crore from Rs 99 crore. These reductions reflect the company's focus on automation, store rationalisation, and increased in-house manufacturing to lower operating costs.
Revenue Declines Amid Competitive Pressure
Ola Electric faces mounting pressure from rivals such as Bajaj Auto and TVS Motor, which have gained market share in India's electric two-wheeler market over the past year. Total income for the March quarter fell to Rs 304 crore from Rs 728 crore a year earlier. Revenue from operations declined to Rs 265 crore from Rs 611 crore.
Earlier this month, Ola Electric announced a Rs 2,000 crore investment into its EV and battery cell subsidiaries as it doubles down on vertical integration and local cell manufacturing. For the full financial year 2025-26, the company reported total income of Rs 2,460 crore, down from Rs 4,932 crore in the previous year. Net loss for the year narrowed to Rs 1,633 crore from Rs 2,276 crore a year earlier.
