Ola Electric reports record-low quarterly revenue amid store closures, layoffs

Ola Electric Mobility Ltd recorded its lowest-ever quarterly revenue since going public in August 2024, with revenue more than halving from a year ago in the October-December period as the company closed stores and laid off employees in a bid to cut costs.

The company saw its losses narrow slightly ₹487 crore in the third quarter of fiscal 2026 ₹Its revenue fell 57% to Rs 564 crore in the same period last year. ₹504 crore amid declining sales. The electric two-wheeler company reported that adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell to -68.7% from -47.3% a year ago.

Vehicle deliveries in the quarter fell 61% to 32,680 units; this was its lowest quarterly sales figure since going public.

cost reset

The Bengaluru-based firm is now focusing its efforts on reducing costs; In its shareholder letter, it says it is reducing the number of stores to 700 from 4,000 a year ago as it densifies its footprint.

Additionally, the company announced in a press release on January 30 that it would lay off 5% of its employees.

Bhavish Aggarwal, chairman and chief executive of Ola Electric, told analysts and investors during a post-earnings call on Friday that the company can handle sales of 15,000 units per month but would not commit to a timeline to achieve its target. According to the statements, currently average three-month deliveries are at 10,893 per month.

“We need to fix our service and rebuild brand trust with that, and that’s what the company is about to do. It’s going to take another quarter or so for us to fully institutionalize the service. And what we’re doing this time is really taking the foundational approach to solving the front-end operational challenges that we’re facing,” Aggarwal told analysts.

Management’s call with analysts was one of the shortest since it went public, as fewer than a half-dozen analysts were given the chance to ask questions. Typically, results earnings calls last between 45 minutes and an hour, with more than a dozen analysts asking management questions.

sales slide

The store closures come as the company faces a steady decline in scooter sales. On December 29, a Mint review of January-November state-wise vehicle registration data from the government’s Vahan portal showed that Ola Electric failed to register year-on-year growth in any month since February 2025 in four of the country’s largest two-wheeler electric vehicle markets – Maharashtra, Uttar Pradesh, Tamil Nadu and Karnataka. The company recorded zero sales in at least one state and one Union territory at least once in the last three months, contributing to its slide to fifth place in the latest rankings.

This meeting with analysts was the first time Ola Electric’s new chief financial officer, Deepak Rastogi, spoke at a public forum. On January 19, the company informed the stock exchanges that Harish Abhichandani, chief financial officer of Ola Electric, had resigned.

Aggarwal and new CFO Rastogi focused on the company’s cost-cutting efforts. “Another important point is the structural cost reset we made. As you can see, about a year ago, our operating expenses were approximately ₹850 crore (deducted) ₹484 crore),” Aggarwal said during the call.

profit push

While analysts have questioned the company about how it plans to get sales back on track, management has insisted it has a competitive advantage in terms of vertical integration when it comes to lithium-ion batteries and other products. Aggarwal noted that while rivals are currently focusing on market share gains, Ola is ready to wait for long-term gains.

In its shareholder letter, the company emphasized that it is focused on reversing the decline in sales.

“As service performance fully stabilizes, we expect the underlying strength of our product offering to reemerge in the market. As service metrics normalize and volumes recover, the combination of improved margins and a structurally lower cost base significantly accelerates our path to profitability,” the letter said.

Ola’s performance was in contrast to its Bengaluru-based peer Ather Energy, which saw its losses more than halve. ₹Its earnings before interest, tax, depreciation and amortization (EBITDA), or operating margin, increased by 16 percentage points to -3% from -19% to Rs 85 crore in the previous year.

Total revenue increased by 53% compared to the previous year ₹996 crore in the quarter as e-scooter sales rose 50% to 68,000 units.

While Ola’s shares have fallen by 52% in the last one year, Nifty Auto’s shares have risen by 26%. On Friday, Ola’s shares fell 0.16% against a 1% decline in Nifty Auto. The results were announced after Sunday time.