Ola Electric’s Q2 FY27 performance told a tale of two extremes. While revenues continued to decline and cash burn persisted, aggressive cost discipline helped narrow some of the losses. With supply chain woes worsening, did Ola Electric pay the price for its past mistakes in Q2?

Supply Woes Bite: The EV maker’s Q2 performance was defined by supply chain constraints, with component and charger bottlenecks restricting vehicle output and triggering a sharp sales decline. Despite weaker dispatches and rising commodity prices, aggressive cost reductions helped narrow net losses. That said, the management now plans to focus on ramping up supply chain and expects the output to improve to 25,000 in December

The Dealer-Led Pivot: The quarter also saw the EV maker halt orders from company-owned stores and pivoted towards the traditional dealer-led network. By transferring inventory and financing to external partners, Ola Electric aims to trim expenses and streamline working capital cycles. While the initial dealer payouts are expected to compress near-term margins, the company expects improvements in margins as retail velocity stabilises across the new outlets.

The Cash Question: All said and done, Ola Electric continues to report negative free cash flow during the quarter. While the company said that the gap was largely due to capex at the Gigafactory, it claims to have bolstered its cash reserves through fundraises and pared down legacy borrowings. It also expects changes to India’s GST refund mechanism to shorten refund cycles and free up working capital.

With much on its plate, here is how Ola Electric fared on the financial front in Q2…

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