Ola Electric Mobility Ltd. announced its September quarter (Q2 FY27) financial results, revealing a consolidated net loss of Rs 362 crore. This figure represents a narrowing of losses compared to Rs 418 crore in the corresponding quarter last year. However, the loss widened on a quarter-on-quarter basis from Rs 336 crore reported in Q1 FY27.
The electric vehicle manufacturer also saw its revenue from operations decline by 38.99% year-on-year, falling to Rs 421 crore in the September quarter from Rs 690 crore in the prior year period. Operating EBITDA loss also increased slightly to Rs 218 crore, up from Rs 203 crore in Q2 FY26. Despite these mixed financial signals, Ola Electric's stock climbed approximately 4% on the day the earnings were released.
Balance Sheet Strengthened and Debt Reduced
Addressing shareholders, Ola Electric highlighted strategic moves to bolster its financial position. The company stated that a Qualified Institutional Placement (QIP) and rights issue significantly strengthened its balance sheet, leading to substantial deleveraging. Total borrowings have reportedly decreased from Rs 3,132 crore in December 2024 to Rs 1,819 crore by September 2026.
Specifically, borrowings related to its auto segment saw a sharp reduction, dropping from Rs 2,422 crore to Rs 337 crore. With this reduced auto debt, coupled with healthy gross margins, an optimized cost structure, and an improved working capital cycle under the dealer model, Ola Electric anticipates its auto business will generate free cash flow in the near term.
Future Growth in Auto and Cell Businesses
Looking ahead, Ola Electric remains optimistic about its growth prospects across its core businesses. The company noted a strong macro environment for its cell business, driven by government focus on component manufacturing, lithium refining, and increasing storage deployments with higher localization requirements.
Ola Electric affirmed that its balance sheet is now more stable, its cost base is structurally and meaningfully lower, and it is not constrained by demand. The company identifies its auto and cell businesses as two long-term growth engines poised for continued expansion and profitability.