(Reuters) -India’s Ola Electric on Thursday cut its overall revenue target but maintained its margin forecast for the core automotive business as the electric two-wheeler maker shifts focus to profitability over volumes.
Ola reaffirmed its fiscal year 2026 auto gross margin target of 40%, but lowered the revenue forecast to 30 billion rupees–32 billion rupees ($341.32 million-$364.07 million) from 42 billion–47 billion rupees projected last quarter. It had reported revenue of 46.65 billion rupees in fiscal 2025.
Shares of the company, which were down 0.8% before the results, fell 5% after the announcement.
Consolidated net loss narrowed to 4.18 billion rupees for the three months ended September 30, from 4.95 billion rupees a year earlier, helped by the auto segment reporting its first positive EBITDA of 20 million.
Total expenses fell 44% to 8.93 billion rupees, with operational costs in the auto unit down 46%, driven by a sharp drop in raw material costs after the company began fitting its own battery cells instead of importing them – a move it has previously said is key to profitability.
The company also expects to reduce operational expenditure to between 3.50 billion and 3.75 billion rupees by the first quarter of the next fiscal year, from 4.16 billion rupees in the September quarter.
Overall sales volumes nearly halved, dragging revenue down 43% to 6.90 billion rupees.
The decline in volumes reflects Ola Electric’s shrinking market share. Once commanding 50% of India’s e-scooter market, the company has been overtaken by legacy players such as Bajaj Auto and TVS Motor, which have expanded distribution and launched similarly priced models.
($1 = 87.8950 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)
