Ola Electrical Mobility Ltd noticed its income greater than halve within the October to December interval from a 12 months in the past, recording its lowest-ever quarterly income because it went public in August 2024, as the corporate closes shops and lays off workers in a bid to chop prices.
The corporate noticed its losses slim barely to ₹487 crore within the third quarter of the monetary 12 months 2026, from ₹564 crore within the year-ago interval, whereas its income fell 57% to ₹504 crore amid dwindling gross sales. The electrical two-wheeler firm reported that its adjusted earnings earlier than curiosity, tax, depreciation and amortization (Ebitda) margin deteriorated to -68.7% from -47.3% a 12 months in the past.
Car deliveries throughout the quarter fell 61% to 32,680 items, its lowest quarterly gross sales quantity because it went public.
Price reset
The Bengaluru-based agency is now focusing its efforts on slicing prices, with the shareholder letter informing that it has diminished its retailer depend to 700 from greater than 4,000 a 12 months in the past because it concentrates its footprint.
Furthermore, the corporate mentioned in a public assertion on 30 January that it’s shedding 5% of its workers.
Bhavish Aggarwal, chairman and managing director of Ola Electrical, advised analysts and traders throughout a post-earnings name on Friday that the corporate can break even at 15,000 unit gross sales a month, however is not going to decide to a timeline of hitting the mark. At the moment, its common quarterly deliveries are at 10,893 per 30 days, as per its disclosures.
“We have now to repair our service and rebuild the model belief with that, which the corporate is in the course of doing. It should take us one other quarter or so to totally institutionalize service. And this time, what we’ve got accomplished is actually taken the foundational constructing strategy to fixing the front-end operational challenges that we confronted,” Aggarwal advised analysts.
Notably, the administration name with analysts was one of many shortest because it went public as lower than half a dozen analysts got an opportunity to pose questions. Usually, earnings calls submit outcomes final wherever between 45 minutes and one hour, with greater than a dozen analysts posing inquiries to the administration.
Gross sales slide
The shop closures got here as the corporate confronted a gentle decline in scooter gross sales. On 29 December, A Mint evaluate of January-November statewise automobile registration information from the federal government’s Vahan portal confirmed that Ola Electrical didn’t submit year-on-year progress in any month since February 2025 in 4 of the nation’s greatest electrical two-wheeler markets—Maharashtra, Uttar Pradesh, Tamil Nadu and Karnataka. In not less than one state and one Union territory, the corporate recorded zero gross sales not less than as soon as over the previous three months, contributing to its slide to fifth place in current rankings.
The engagement with analysts was the primary time Deepak Rastogi, the brand new chief monetary officer of Ola Electrical, spoke in a public discussion board. On 19 January, the corporate knowledgeable the exchanges that Ola Electrical’s chief monetary officer Harish Abhichandani had resigned.
Aggarwal and new CFO Rastogi centered on the corporate’s efforts to cut back prices. “One other necessary level is the structural value reset that we’ve got accomplished. And also you see that a few 12 months in the past, our Opex value was about ₹850 crores (decreasing to ₹484 crore),” Aggarwal mentioned throughout the name.
Revenue push
Whereas analysts questioned the corporate on the way it plans to get gross sales again on observe, the administration insisted that it has the aggressive benefit when it comes to vertical integration relating to lithium ion cells and different merchandise. Aggarwal famous that opponents are at the moment centered on market share beneficial properties, whereas Ola is able to await long-term beneficial properties.
In its shareholder letter, the corporate emphasised its concentrate on reversing the gross sales droop.
“As service efficiency stabilises absolutely, we count on the underlying power of our product proposition to reassert itself available in the market. As service metrics normalise and volumes recuperate, the mixture of improved margins and a structurally decrease value base materially accelerates our path to profitability,” the letter mentioned.
Ola’s efficiency was in distinction to its Bengaluru-based peer Ather Power, which noticed its losses greater than halve to ₹85 crore from a 12 months earlier as its earnings earlier than curiosity, tax, depreciation and amortization (Ebitda) or working margin improved by 16 proportion factors from -19% to -3%.
Its whole income surged 53% year-on-year ₹996 crore, pushed by a 50% bounce in e-scooter gross sales to 68,000 items throughout the quarter.
Within the final one 12 months, Ola’s shares have declined 52%, as towards a 26% achieve in Nifty Auto. On Friday, Ola’s shares declined 0.16% as towards a 1% decline in Nifty Auto. Its outcomes have been declared after market hours.