Ola Electric Mobility reported a consolidated net loss of Rs 362 crore for the second quarter of FY2027, compared with Rs 336 crore in the preceding quarter and Rs 418 crore in the year-ago period. Revenue from operations declined 39% year-on-year to Rs 421 crore in Q2 FY2027, against Rs 690 crore in Q2 FY2026.
For the six months ended September 30, 2026, revenue from operations stood at Rs 876 crore, down 42% from Rs 1,518 crore in the corresponding period last year. The company's consolidated net loss narrowed to Rs 698 crore from Rs 846 crore in the first half of FY2026.
Total consolidated income, including other income, stood at Rs 448 crore during the September quarter, compared with Rs 756 crore a year earlier. Total expenses declined to Rs 639 crore from Rs 893 crore in the corresponding quarter last year, although they increased from Rs 620 crore in Q1 FY2027.
The reduction in expenses was not sufficient to offset the decline in revenue. Ola Electric's loss before finance costs, depreciation, amortisation and tax stood at Rs 191 crore, compared with Rs 137 crore in Q2 FY2026. Finance costs were Rs 63 crore, while depreciation and amortisation expenses stood at Rs 108 crore during the quarter.
Ola Electric's Auditor Flags Accounting Treatment Of MHI Penalty Provision
The company's consolidated financial results carry a qualified conclusion from statutory auditor B S R & Co. LLP concerning the accounting treatment of a Rs 57 crore provision for liquidated damages linked to investment milestones under the Ministry of Heavy Industries' Advanced Chemistry Cell (ACC) battery production-linked incentive scheme.
Ola Cell Technologies, a wholly owned subsidiary, had recognised the provision for liquidated damages relating to delays in meeting investment milestones. During Q1 FY2027, the company reversed the entire Rs 57 crore provision and recorded a corresponding credit under other expenses after seeking an extension of the investment timeline and a waiver of the damages.
The auditor's position is that the provision should have been retained until the quarter in which the waiver was received. It also stated that an additional provision of Rs 11 crore should have been recognised for Q1 FY2027. The Ministry subsequently granted a conditional waiver through a letter dated August 11, 2026, subject to the subsidiary meeting the investment milestones and other conditions within the revised timelines.
The auditor consequently qualified its conclusion on the consolidated financial results for the quarters ended June 30 and September 30, 2026. Its conclusion was not modified in respect of the group's going-concern assessment.
Rights Issue And QIP Add To Ola Electric's Funding
Ola Electric raised Rs 780 crore through a qualified institutional placement (QIP) during the first half of FY2027. The proceeds are intended to support organic growth initiatives, general corporate purposes and repayment of debt obligations.
Subsequent to the September quarter, the company allotted 37.03 crore partly paid-up equity shares through a rights issue at Rs 27 per share, aggregating approximately Rs 1,000 crore. It had received around Rs 600 crore in application money at the time of reporting.
The company said the rights issue proceeds would support its liquidity position, debt obligations, working capital requirements and other corporate purposes.
In its financial statement notes, Ola Electric reported negative operating cash flow at the standalone level for the six months ended September 30, 2026, amounting to Rs 24.61 lakh, against positive operating cash flow of Rs 203.49 lakh in the year-ago period. Management said its going-concern assessment considered available cash balances, projected operating cash flows from subsidiaries, available credit limits and the proceeds from the rights issue.
The company's consolidated results cover its automotive and cell businesses, with the automotive segment accounting for the larger share of revenue.