Ola Electric Mobility reported a 39% year-on-year decline in revenue to ₹421 crore in the second quarter of FY27, from ₹690 crore a year earlier.

The company's net loss narrowed to ₹362 crore from ₹418 crore. However, its operating loss, measured by EBITDA, widened to ₹218 crore from ₹203 crore in the year-ago quarter.

Gross margin stood at 29.93%, compared with 30.9% a year earlier. In value terms, gross margin fell to ₹126 crore from ₹213 crore.

Operating expenses declined to ₹369 crore from ₹472 crore in the year-ago quarter. They were also lower than the ₹390 crore reported in the first quarter of FY27, excluding a one-time, non-cash reversal of ₹57 crore in that quarter.

Ola Electric expects operating expenses to fall further as it completes the shift of its retail network to a dealer-led model.

The company said 255 dealer partners were operating 319 stores as of November 8. It plans to expand the network to about 450 stores by December 2026 and 700 by March 2027.

Wholesale orders and dispatches to dealers have increased, with repeat orders accounting for a growing share, the company said. It added that demand was outstripping supply and that it could sell every vehicle it produced. The current constraint was the pace at which its supply chain was scaling up, rather than its manufacturing capacity.

Production, which had remained broadly flat for several months, is now rising month by month. Ola Electric expects to produce about 25,000 vehicles in December. Inventory at dealer outlets stood at around 15 days, while some of its oldest stores had less than a week's worth of stock.

The company has shut most of its directly operated stores and is routing all new production through dealers. It stopped taking orders through its direct-to-consumer outlets on November 1, with most of these stores expected to close by December.

In its battery-cell business, Ola Electric said it had achieved the scheduled commercial operation date for 6 GWh of cell capacity ahead of schedule. It is now ramping up production and improving manufacturing yields. The government has also extended the company's advanced chemistry cell production-linked incentive scheme until 2031.

The company expects to begin using its own lithium iron phosphate (LFP) cells in vehicles in the fourth quarter of FY27. Deliveries of the S1Z, which was announced during the quarter, are also expected to begin in the same period.

Ola Electric's total borrowings fell to ₹1,819 crore in September 2026 from ₹3,132 crore in December 2024. Borrowings in its automotive business declined to ₹337 crore from ₹2,422 crore over the same period.

The company said lower debt, healthy gross margins and a better working-capital cycle under the dealer model put its automotive business on track to generate free cash flow in the near term.

Shares of Ola Electric Mobility closed at ₹35.74 on the NSE, up ₹1.31, or 3.80%.