Ola Electric Eyes 50% Cost Reduction to Reach Profitability

Lossmaking electric 2-wheeler maker Ola Electric has outlined a plan to sharply reduce operating expenses as it works towards profitability, after reporting a narrower loss for the 3rd quarter despite weak sales, as per Reuters report. 

Loss Narrows As Cost Reset Plan Begins 

The SoftBank-backed company reported a quarterly loss of ₹4.87 billion, lower than the year-ago period, supported by a new product lineup that is cheaper to manufacture.  

Lower production costs partly cushioned the impact of a steep drop in sales volumes during the quarter. 

Ola Electric said it is redesigning its operating structure to reach a more sustainable cost base. The company stated, "As EV penetration growth has slowed and our service execution has required strengthening, we chose to realign our retail footprint, cost structure, and operating model to a sustainable steady state." 

Expense Reduction and Profitability Targets 

The company expects operating expenses to fall to about ₹2.5–3 billion in the coming quarters, compared with ₹4.84 billion in the December quarter.  

If achieved, the monthly sales needed to reach operating profit would drop to around 15,000 units, versus its average of about 11,000 units per month in the quarter. 

Cost savings are being driven by higher automation, workforce rationalisation and greater in-house EV cell production, along with the rollout of more cost-efficient vehicle models. Ola also said improvements in service centre operations and higher-range vehicles using in-house cells are expected to support recovery in demand. 

Sales volumes declined 61% year-on-year in the December quarter, leading to a 55% fall in revenue. Despite this, the company has maintained its full-year revenue guidance of ₹30–32 billion and a sales target of 100,000 units for the October–March period. 

Read More: Ola Electric to Layoff Around 5% Workforce Amid Restructuring Drive! 

OLA Electric Share Price Performance  

As of February 16, 2026, at 11:08 AM, OLA Electric share price is trading at ₹28.83 per share, reflecting a decline of 0.37% from the previous closing price.  

Conclusion 

With aggressive cost cuts and operational restructuring underway, Ola Electric is aiming to lower its breakeven threshold and move closer to profitability even as market growth remains uneven. 

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