Ola Electric Mobility shares fell 4% to Rs 35.49 on BSE during Thursday’s trading session after the pure-play electric two-wheeler manufacturer reported a consolidated net loss of Rs 500 crore for the March quarter, narrowing 42.5% from Rs 870 crore in the corresponding period last year, attributable to the company’s owners.
Revenue from operations stood at Rs 265 crore, marking a sharp 57% decline compared to Rs 611 crore reported in the same quarter of the previous financial year.
The company reported an EBITDA loss of Rs 281 crore for the quarter under review versus Rs 630 crore in the year-ago period.
Consolidated gross margin improved to 38.5% in Q4FY26 versus 34.3% in Q3FY26 and 13.7% in Q4FY25. The company highlighted that this reflects an industry-leading gross margin profile, outperforming several two-wheeler OEMs, including established ICE manufacturers.
However, Ola Electric cautioned that gross margins may soften in Q1 and Q2FY27 due to commodity inflation and pricing initiatives aimed at driving growth amid geopolitical uncertainties. Despite this, the company said it retains adequate margin buffers to pursue competitive pricing and customer-focused offerings while sustaining healthy unit economics.
The company also noted that Q4FY26 marked its first quarter of positive operating cash flow, despite lower sales volumes during the period.
Consolidated cash flow from operations (CFO) came in at Rs 91 crore, aided by PLI incentives, improved gross margins, lower operating expenses, and tighter working capital management. Consolidated free cash flow (FCF) improved to negative Rs 131 crore.
Within its businesses, the Auto segment generated CFO of Rs 213 crore and free cash flow of Rs 173 crore during Q4FY26. Meanwhile, the Cell business remained in investment mode as the company continued scaling its Gigafactory operations and prepared for upcoming cell and energy storage product launches.
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Outlook
Based on prevailing trends, Ola Electric expects Q1FY27 orders to range between 40,000 and 45,000 units — nearly double the volumes recorded in Q4FY26.
As volumes recover, the company anticipates its auto business progressing toward adjusted operating EBITDA and free cash flow positivity during FY27. Management said this shift would be driven by stronger gross margins, continued reduction in operating costs, disciplined working capital management, supplier and factory ramp-up, and improved utilisation of existing assets.
On Wednesday, Ola Electric shares settled 1.04% higher at Rs 36.96 on the NSE.
Technical View
On the technical charts, the stock’s 14-day RSI stood at 57.4. Typically, an RSI below 30 indicates oversold conditions, while a reading above 70 signals overbought territory. The stock is currently trading above seven of its eight simple moving averages (SMAs), though it remains below the 200-day SMA.
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