Ola Electric Mobility Ltd (OLAELEC) Q2 FY27 Results Analysis: Revenue Plunges 39% YoY, EBITDA Margin Compresses 2,240 bps
Ola Electric Mobility Ltd reported Q2 FY27 numbers with revenue of Rs. 421.00 Cr (-38.99% YoY) and PAT growth of +13.40% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 421.00 Cr (-38.99% YoY) |
| PAT (Q2) | Rs. -362.00 Cr (+13.40% YoY) |
| EBITDA margin | -51.78% (-2240 bps YoY) |
| EPS (Q2) | Rs. -0.78 (+17.89% YoY) |
Quarter Snapshot
Ola Electric missed its own guidance on opex (Rs.344 Cr vs Rs.300-325 Cr band), gross margin (29.93% vs 30-32%), and cash burn (H1 Rs.403 Cr vs Rs.300-500 Cr FY guide), while revenue fell 38.99% YoY and operating EBITDA margin deteriorated ~2,240 bps to (51.78)%. The reported loss narrowing is flattered by a Rs.38 Cr depreciation estimate change; normalized loss is Rs.(400) Cr, and the auditor's qualified review conclusion plus the going-concern note underscore liquidity dependence on the Rs.1,000 Cr rights issue. Debt repayment guidance was the only target met, with Rs.615 Cr repaid in H1.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| "revenue reads in-line to behind versus the Q1 exit trajectory" | revenue_qoq_pct −7.47% (Rs.421 Cr vs Rs.455 Cr) — behind | Played out |
| "Net read: compressing at the vehicle level" on GM | gross_margin_q2fy27_pct 29.93% vs 30.33% Q1 | Played out |
| Opex Rs.300–325 testable; "cost discipline is the more credible leg" | employee_plus_other_q2fy27_cr Rs.344 Cr ex-lease — above band | Played out |
| "Q2 should still show a cell drag" | cell_opeb_q2fy27_cr Rs.(27) Cr | Played out |
| "Q2 CFO versus the Rs.300–500 Cr FY27 operating burn guide" | cfo_6mfy27_cr Rs.(403) Cr — front-loaded | Played out |
| "resolution path on the auditor's qualified conclusion" | qualification repeated for Q2 in the limited review report — open | Partially |
| Share slipping to 6.5% by September (web-sourced, dated) | Not in the filing | Not observable |
| Lithium collapse "deflationary for the cell BOM" late-quarter | GM fell anyway; no cell-cost disclosure | Not observable |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Consolidated opex Rs.300–325 Cr/qtr, incl. leases | Q1 FY27 earnings call (Aug 7, 2026): "the next couple of quarters" | Rs.344 Cr employee+other, excluding lease rents — above the band before the lease add (Q1 lease delta ~Rs.30 Cr) | Missed |
| Gross margin ~30–32% (open-ended) | Q1 FY27 call: "our gross-margin target is around 30-32%" | 29.93% (Auto 29.76%) — marginal, ~–10 bps below low end | Missed |
| Operating cash burn Rs.300–500 Cr over FY27 | Q4 FY26 call | H1 CFO Rs.(403) Cr — front-loaded beyond band | Off track |
| Debt repayments Rs.400+ Cr in FY27 | Q4 FY26 call | Rs.615 Cr repaid in H1 | Met |
| Cell P&L contribution from Q3 FY27 | Q1 FY27 call | Cell op EBITDA Rs.(27) Cr in Q2 | Too early |
| Auto adj. op. EBITDA / cash-flow positivity through FY27 | Q4 FY26 call | Auto op EBITDA Rs.(117) Cr; H1 consolidated CFO Rs.(403) Cr | Missed so far |
| "Recover volumes, hold margin leadership, reduce OpEx" (CFO, FY27 priorities) | Q1 FY27 call | Revenue −7.47% QoQ; GM −40 bps QoQ; opex above band | Contradicted |
| Cost structure reset making the model leaner | Q1 FY27 call ("first full quarter operating on that reset base") | Employee +39.58% QoQ, other expenses +8.63% QoQ; unallocable corporate costs −Rs.33 Cr YoY is the only clear cost win | Partially |
| Going concern supported by cash, credit limits and rights issue | Filing note 4 | H1 CFO Rs.(403) Cr; cash + bank Rs.750 Cr at Sep 30 before the Rs.600 Cr rights receipts — post-quarter rights issue is the swing factor | Too early |
| Cell business turning P&L-positive from Q3 FY27 | Q1 FY27 call | Cell op EBITDA swung to Rs.(27) Cr in Q2 | Too early |
Key Investment Insights
Key Positives
- Debt repayments of Rs.615 Cr in H1 met the FY27 guidance of Rs.400+ Cr; total borrowings down Rs.657 Cr since March
- Finance costs fell 42.20% YoY to Rs.63 Cr
- Unallocable corporate expenses down Rs.33 Cr YoY (Rs.73 Cr vs Rs.106 Cr)
- Rs.1,000 Cr rights issue allotted post-quarter at Rs.27/share with Rs.600 Cr application money received
- Rs.780 Cr QIP completed in H1 at Rs.35.86/share
Risk Factors
- Revenue fell 38.99% YoY and 7.47% QoQ to Rs.421 Cr
- Operating EBITDA loss widened to Rs.(218) Cr with margin deteriorating ~2,240 bps YoY to (51.78)%; normalized net loss is Rs.(400) Cr after stripping the Rs.38 Cr depreciation benefit
- Opex of Rs.344 Cr (ex-lease) exceeded management's Rs.300-325 Cr/qtr guidance band; gross margin 29.93% below the 30-32% target
- H1 operating cash burn of Rs.403 Cr is 81% of the top of the Rs.300-500 Cr FY27 guidance band; cash and bank halved to Rs.750 Cr
- Auditor qualified the review conclusion on the Rs.57 Cr PLI provision reversal; going-concern note flags negative operating cash flow
- Automotive operating EBITDA loss more than doubled YoY to Rs.(117) Cr; market share slipped to 6.5-7.5% from 8.4% in Q1 against an industry up ~80% YoY
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