New Delhi: Ola Electric Mobility Ltd saw its revenue decline for the seventh consecutive quarter in April-June as sales continued to lag the year-ago period despite heavy discounts to boost sales.
In its filing on Friday, Ola also confirmed it has received a show-cause notice from Sebi. The market regulator is investigating the company's disclosures regarding new store openings, vehicle delivery timelines for the Roadster, and discrepancies in sales figures reported in press announcements versus the government's Vahan portal.
“Based on external legal advice, the company believes that in order to achieve an expeditious and efficient resolution, it is appropriate to pursue a settlement with Sebi without any admission of liability, and the same will be concluded through the settlement process,” Ola said in its results filing.
Consolidated revenue fell 45% to ₹455 crore while net loss narrowed to ₹336 crore from ₹428 crore a year earlier. The company also saw its cash flow from operations drop to negative ₹215 crore after reporting positive cash flow of ₹91 crore in the March quarter.
The company’s June-quarter performance was in sharp contrast to that of its cross-town rival Ather Energy, which saw its revenue double to ₹1,260 crore and losses narrow to ₹51 crore. On the operational front, Ather achieved Ebitda breakeven for the first time, while rival Ola Electric saw its Ebitda margin widen to negative 43% from negative 36% a year earlier.
In February 2025, a dispute with its vehicle registration agencies led Ola Electric to record roughly 8,000 scooter registrations on the Vahan portal despite reporting over 25,000 sales. The company later clarified to government authorities that the 25,000 figure reflected total bookings, which included pre-orders for its unlaunched Roadster e-bike, rather than completed deliveries. Separately, The Economic Times reported that Sebi is examining Ola's December 2024 claim of operating 4,000 stores, investigating whether physical store expansion matched the company's announcements.
Data from the Vahan portal showed that while Ola Electric saw registrations fall 27% year-on-year to nearly 44,000 in the June quarter despite steep discounts aimed at boosting sales, sequential performance improved, pushing its market share to over 8% at the end of June.
The company’s average selling price (ASP) per vehicle dropped to ₹1.14 lakh in Q1 FY27, down from ₹1.31 lakh in the preceding March quarter (Q4 FY26). Year-on-year, ASP fell from ₹1.21 lakh recorded in Q1 FY26.
Chairman and managing director Bhavish Aggarwal noted that the company saw a sequential improvement in sales during the quarter as orders increased from 22,522 in Q4FY26 to 44,071 in Q1FY27, while deliveries nearly doubled from 20,256 to 39,192.
“We will actually be announcing the first set of dealerships, and go live with shops already set up on Janmashtami, which is early next month. We look forward to having meaningful scale before the Diwali season hits,” Aggarwal said on the company's decision to give stores to dealerships.
The company is also betting on generating revenue from the cell business as it looks to monetise its 6GWh of capacity, which it says will be fully commissioned by September. It has signed a memorandum of understanding (MoU) with Axis Energy for potential deployment of 20GWh of battery storage capacity in the next six years.
“I feel very confident that more and more demand pipelines will get announced. We are, like I said, speaking to everybody. So, the demand pipeline is building soon,” Aggarwal said about the opportunity for its cell business. According to the company’s estimates, the cell business will start contributing meaningfully to the overall business from either the December quarter or the March quarter.
Departing from its usual practice of providing sales targets, management held back on specific revenue and sales guidance for the upcoming period, following missed forecasts in FY26. The Bengaluru company posted a 50% year-on-year revenue decline in FY26 at ₹2,253 crore, well below its ₹3,000-3,200 crore guidance issued in November.
Ayaan Kartik is a Delhi-based journalist tracking the ever-growing world of automobiles and their components. With an experience of five years ranging from short-form news at Inshorts to longform journalism at Outlook Business magazine, he has dabbled into different storytelling formats. At Mint, he tries to regularly mix story styles, from longforms to crisp news stories. He has completed his graduation from Delhi University where he developed a liking for reading and writing about the world we live in today. Apart from automobiles, Ayaan likes to read up on geopolitics which has increasingly affected various sectors of the economy. Of all the promises journalism holds, he likes the fact that it allows a person to simply explain to readers about what is happening in the world. And what better sector than automobiles, which everyone since growing up has seen and felt connected to. Whether it is China's increasing grip on automobiles to growing affection for EVs in the country, Ayaan likes to connect his love for geopolitics and data to his stories as readers become more demanding on the types of stories they want.
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