Ola Electric Mobility Ltd. narrowed its quarterly net loss by nearly half from a year earlier and generated positive operating cash flow for the first time, even as revenue continued to slide.
The company posted a consolidated net loss of Rs 500 crore for the quarter ended March 31, down 42.5% from a loss of Rs. 870 crore in the same period a year earlier. The improvement came despite a modest sequential uptick in losses of about 3% from the prior quarter.
Revenue from operations tumbled 56.6% year-over-year to Rs 265 crore, and fell 43.6% from the December quarter's Rs 470 crore. The steep decline reflects a broader pullback in sales volume, though the company said it is working to rebuild market share.
Ola Electric said the March quarter marked its first in which consolidated cash flow from operations turned positive, reaching Rs 91 crore. The company attributed the milestone to inflows from India's production-linked incentive program, improved gross margins, and stricter management of working capital. Free cash flow remained negative at Rs. 131 crore, though that represents a meaningful improvement from prior periods.
Gross margins expanded sharply, reaching 38.5% in the March quarter, up from 13.7% a year earlier and 34.3% in the December quarter. Ola credited vertical integration of its manufacturing operations, the maturation of its third-generation scooter platform, and cost discipline for the gains.
Total expenses fell 58.2% year-over-year to Rs. 546 crore, with employee costs coming in at Rs. 58 crore and other expenses at Rs. 325 crore.
For the full fiscal year ended March 2026, Ola Electric reported revenue from operations of Rs 2,253 crore, down 50.1% from Rs 4,514 crore in the prior year. The annual net loss narrowed 19.5% to Rs 1,833 crore from Rs 2,276 crore, while total expenses dropped to Rs 3,245 crore from Rs 6,253 crore.
The company acknowledged ongoing uncertainty about its financial position, saying it continues to evaluate its liquidity and is pursuing additional capital through a proposed qualified institutional placement.
Ola also pointed to progress in its service operations, which drew widespread criticism last year over long wait times and unresolved complaints. The company said average service turnaround time fell 88% between October 2025 and March 2026, and that service backlog days dropped from 14 to six.
Warranty costs fell to Rs 59 crore in fiscal 2026 from Rs 555 crore the prior year.
On the sales front, Ola said April registrations rose 20% from the prior month to 12,166 units, even as the broader electric two-wheeler market declined more than 22% during the period. The company said it aims to reclaim a 15% to 20% national market share over the next six months, after losing significant ground to rivals over the past year.
Looking ahead, Ola Electric projected first-quarter fiscal 2027 orders in the range of 40,000 to 45,000 units, nearly double fourth-quarter levels, citing improving service metrics, stronger sales execution, and a recovery in consumer demand.