Ola Electric Mobility shares fell more than 6% in early trading on Friday after the electric two-wheeler manufacturer reported a sharp decline in revenue for the September 2026 quarter, despite narrowing its losses.
The Bhavish Aggarwal-led company's stock opened 3.5% lower at ₹34.50, ending a two-session winning streak, before slipping to an intraday low of ₹33.48.
Trading activity remained elevated, with over 15 million shares worth ₹55.63 crore changing hands on the National Stock Exchange (NSE) during the opening five minutes.
Ola Electric reported a consolidated net loss of ₹362 crore for the July-September quarter, compared with ₹418 crore in the corresponding period last year.
However, revenue from operations declined nearly 39% to ₹421 crore from ₹690 crore in Q2 FY26.
Total expenses fell approximately 28% to ₹639 crore, against ₹893 crore a year earlier.
The automotive division reported a loss of ₹214 crore, narrowing from ₹233 crore in the previous year's corresponding quarter.
Segment revenue also declined to ₹420 crore from ₹688 crore.
The results reflected lower sales revenue alongside reductions in expenditure across the business.
The company is restructuring its retail network by replacing company-owned outlets with dealer-operated stores.
Ola Electric opened its first dealership on Sept 4 and expanded the network to 319 outlets by Nov 8.
The transition forms part of the company's strategy to reduce operating expenses and improve the efficiency of its distribution operations.
According to the company, operating costs have already declined and are expected to fall by another ₹50 crore as it closes its company-operated store network.
The restructuring comes as Ola Electric seeks to contain losses and streamline operations amid pressure on revenue.
Investors will be watching whether the dealership expansion and cost reductions translate into improved financial performance in subsequent quarters.
