On Wednesday, Ola Electric Mobility Ltd posted a 50% year-on-year decline in FY26 revenue at ₹2,253 crore, well below its ₹3,000-3,200 crore guidance issued in November. According to reports from Mint, the Bengaluru-based company attributed the revenue miss to an operational reset and higher investments in in-house cell manufacturing. The company's scooter and bike sales fell 44% to 173,794 units year-on-year in the financial year, even as losses narrowed to ₹1,833 crore from ₹2,276 crore in FY25. In the latest quarter, revenue halved with the company reporting ₹265 crore in Q4 FY26, compared to ₹487 crore in Q3 FY26 and ₹870 crore in Q4 FY25.
The revenue decline allowed cross-town rival Ather Energy Ltd to overtake Ola Electric in annual revenue for the first time since the two companies began selling scooters together. As reported by Mint, Ather's revenue rose 63% year-on-year to ₹3,671 crore in FY26, driven by a 69% jump in volumes to 263,000 units, while net loss narrowed to ₹517 crore from ₹812 crore in the year-ago period. This marks a significant shift in the competitive landscape of India's electric two-wheeler market.
Despite weak revenue performance, Ola Electric demonstrated effective cost management during FY26. According to the latest results, the company's total expenses decreased by 58.2% to ₹546 crore in Q4 FY26 compared to ₹1,306 crore in the same quarter last year. On an annual basis, total expenses reduced from ₹6,253 crore to ₹3,245 crore, reflecting the company's focus on operational efficiency. The company's net loss for the full year decreased by 19.5% to ₹1,833 crore, showing significant improvement in loss reduction despite revenue challenges.
Looking ahead, Ola Electric is preparing to raise additional funds through a proposed Qualified Institutional Placement (QIP) to meet its funding requirements. The company's shares closed at ₹36.50, down by 8 paise, reflecting investor concerns about the revenue decline. Over the past year, the stock has fallen 28.60%, with a 2.72% decline this year from January 1. The company's market capitalization stands at approximately ₹15.46 crore. In its quarterly letter to shareholders, Ola Electric described FY26 as a year of reset, focusing on strengthening business fundamentals.
In its quarterly letter, Ola Electric told shareholders that it plans to raise capital for its cell business to expand manufacturing capacity to 20 gigawatt hours (GWh) from the current 6 GWh as it looks to monetize the cell business. As reported by Mint, Bhavish Aggarwal, chairperson and managing director at Ola Electric, noted that the company will migrate all of its products into its own cells by the end of September 2026, which will help in cost savings. He added that once the 6 GWh capacity is utilized over the course of this year, the company will get a 10-15% advantage on building its own cell, including operational overheads of the Gigafactory.
