Ola Electric reports a sharp quarter-on-quarter sales rise amid a broader stabilisation, but faces profitability challenges and regulatory scrutiny as it shifts towards a dealer-led retail model.
Ola Electric said its revenue for the first quarter of fiscal 2027 fell 45% from a year earlier to ₹455 crore, even as the Bengaluru-based company narrowed its consolidated net loss to ₹336 crore from ₹428 crore a year ago. The figures suggest a business still under pressure, but one that is beginning to stabilise after a difficult stretch marked by softer demand and heavier costs.
The improvement was more visible sequentially. Revenue rose 72% from ₹265 crore in the March quarter, helped by a sharp rebound in vehicle sales. Orders climbed to 44,071 units from 22,522 in the previous quarter, while deliveries reached 39,192 units. That recovery lifted Ola Electric’s share of India’s electric two-wheeler market to 8.4%, according to the company’s filing.
The company also strengthened its finances during the quarter by raising ₹780 crore through a qualified institutions placement, a share sale aimed at large investors. At the same time, Ola Electric is pressing ahead with a major shift in distribution, moving away from a direct-to-consumer approach towards a dealer-led retail model. Livemint reported that the company has already tied up with more than 600 multi-brand outlets and is aiming for 1,000 before the festive season, while Business Standard said the broader transition is intended to move the business from a warehouse-led structure to a retail-first network.
Even so, the turnaround remains fragile. Gross margin slipped to 30.5% from 38.5% in the previous quarter, showing that the gains in volume have not yet translated into healthier profitability. The company’s auditor has also raised an issue at Ola Cell Technologies over liquidated damages, saying there was not enough evidence to support a waiver request. Separately, Ola Electric remains under scrutiny from the Securities and Exchange Board of India over disclosure-related matters, leaving execution on the new retail model and regulatory developments as key tests for the months ahead.
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