Ola Electric Q3 FY26: Revenue Slumps 55%, Gross Margin Improves to 34.3%
Losses persist, but cost cuts and manufacturing ramp signal operational reset
Ola Electric Mobility Ltd reported a sharp 55% year-on-year revenue decline to â‚ą470 crore in Q3 FY26, even as gross margins improved and operating costs trended lower.
The results, announced on February 13, 2026, reflect a business in transition.
Revenue and Losses Deepen Sequentially
Revenue from operations fell from â‚ą1,045 crore a year earlier and declined 31.9% quarter on quarter from â‚ą690 crore.
Total income dropped 57% YoY to â‚ą504 crore and 33.3% sequentially from â‚ą756 crore.
Expense and loss snapshot:
- Total expenses: â‚ą741 crore, down 50.8% YoY
- EBITDA loss: â‚ą(237) crore, narrowed 28.8% YoY but widened 73% QoQ
- Net loss: â‚ą(487) crore, narrowed 13.7% YoY but widened 16.5% sequentially
For 9M FY26, revenue fell 49.1% to â‚ą1,988 crore, while net loss reduced 5.2% to â‚ą(1,333) crore.
The sequential widening in losses suggests near-term demand pressure despite cost discipline.
Gross Margin Expands Sharply
The company reported a consolidated gross margin of 34.3%, up from 18.6% a year ago and 30.9% in Q2 FY26.
Operating expenditure declined meaningfully.
Operational reset highlights:
- Quarterly opex reduced to â‚ą484 crore from a peak of â‚ą840 crore in Q4 FY25
- Target to lower opex to ₹250–₹300 crore over the next two quarters
- EBITDA breakeven projected at around 15,000 units per month
- Q3 deliveries stood at 32,680 electric two-wheelers
Margin expansion indicates improved cost structure, even as revenue contracts.
Gigafactory and Cell Production Ramp-Up
Manufacturing momentum continued during the quarter.
The company doubled cell production quarter on quarter to 72,418 cells and deployed in-house 4680 Bharat Cells into customer vehicles.
Capacity update:
- Installed Gigafactory capacity: 2.5 GWh
- Planned expansion to 6 GWh by March 2026
Service metrics improved as well.
Service backlog reduced from 14 days at peak to 7–8 days, with nearly 80% of requests completed the same day.
The operational focus appears centered on tightening execution while preserving long-term capacity ambitions.
As of February 13, 2026, at 3:30 PM, Ola Electric shares closed at â‚ą30.89 on NSE, down 0.26% from the previous close.
The muted market reaction suggests investors are weighing margin gains against steep revenue contraction.
The Bottom Line
Ola Electric’s Q3 FY26 reflects a company balancing falling revenue with structural cost correction.
Gross margins are improving, opex is declining, and manufacturing capacity is expanding. Yet losses remain elevated, and sequential trends show continued stress.
Can margin discipline offset top-line weakness in the coming quarters?
TL;DR:
Ola Electric’s Q3 FY26 revenue fell 55% YoY to ₹470 crore, while gross margin improved to 34.3%. Net loss stood at ₹487 crore. Opex declined, cell production doubled, and Gigafactory capacity expansion to 6 GWh is planned by March 2026.
AI summary:
- Revenue down 55% YoY to â‚ą470 crore
- Gross margin improves to 34.3%
- Net loss at â‚ą487 crore
- Opex reduction underway
- Gigafactory expansion planned to 6 GWh
