Ola Electric reported a steep decline in revenue in the first quarter of FY27, but tighter spending helped the company narrow its losses despite continued pressure on the top line.
Revenue from operations stood at Rs 455 crore in Q1 FY27, down about 45% from Rs 828 crore in Q1 FY26. The weaker revenue performance was accompanied by a 25% year-on-year decline in EV registrations during the quarter.
The Bengaluru-based electric vehicle maker, however, managed to reduce its net loss to Rs 336 crore, compared with Rs 426 crore a year earlier, marking a decline of about 21.1%.
The numbers paint a mixed picture for Ola Electric. The business remains substantially smaller in revenue terms than it was a year ago, but a sharp reduction in expenditure helped soften the impact on its bottom line.
Automotive business remains the main revenue driver
Ola Electric’s automotive operations generated Rs 455 crore during the quarter and accounted for 98.91% of segment revenue.
Its other business contributed another Rs 5 crore, taking combined segment revenue to Rs 460 crore before inter-segment eliminations.
Apart from revenue from operations, Ola Electric recorded Rs 29 crore in other income. This took total income for the quarter to around Rs 484 crore, compared with Rs 896 crore in the corresponding period last year.
Expenses fall sharply as Ola Electric tightens costs
Cost reduction was one of the clearest changes in Ola Electric’s quarterly performance.
Total expenses declined 41.8% year on year to Rs 620 crore, against Rs 1,065 crore in Q1 FY26.
Procurement, or the cost of materials, stood at Rs 317 crore during the quarter. Employee benefit expenses also came down significantly, falling 46.1% to Rs 48 crore.
Lower spending, including reduced manufacturing expenditure, helped Ola Electric contain its losses despite the sharp year-on-year decline in operating revenue.
The result is an important distinction in the quarter’s numbers. Ola Electric did not narrow its loss by rebuilding revenue to last year’s level. Instead, much of the improvement came from operating with a substantially lower expense base.
Sequential numbers show a stronger quarter
While the year-on-year comparison remained weak, Ola Electric’s performance improved notably from the immediately preceding quarter.
Operating revenue increased 71.7% sequentially to Rs 455 crore in Q1 FY27. The company’s loss also fell 32.8% quarter on quarter, from Rs 500 crore to Rs 336 crore.
That sequential movement provides a different view of the quarter. Revenue is still considerably below Q1 FY26, but the company entered FY27 with a higher operating revenue base and a smaller loss than in the preceding three-month period.
Ola Electric raises Rs 780 crore through QIP
The company also strengthened its capital position through a Qualified Institutional Placement, raising Rs 780 crore.
The issue was 56% oversubscribed against Ola Electric’s initial fundraising target of Rs 500 crore.
At the close of trading on Friday, Ola Electric shares were at Rs 41.07 apiece, giving the company a market capitalisation of approximately Rs 19,185 crore.
For Ola Electric, Q1 FY27 therefore presents two contrasting trends. On an annual basis, revenue remains under considerable pressure. At the same time, lower expenses, a narrower loss and a strong sequential improvement in operating revenue show that the company’s cost structure and near-term financial performance moved in a more favourable direction during the quarter.
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