EV firm delays Gigafactory expansion plan

OLA ELECTRIC HAS delayed plans to ramp up battery manufacturing capacity at its Gigafactory in Tamil Nadu, pointing to slower-than-expected growth in the electric vehicle (EV) market.

- NARAYANAN V

OLA ELECTRIC'S NET loss for the first quarter of FY26 widened to ₹428 crore from ₹347 crore a year ago as revenue halved due to faltering sales and rising competition from legacy two-wheeler makers.

Revenue from operations of the Bengaluru-based electric two-wheeler (E2W) manufacturer fell 50% to ₹828 crore in the quarter, down from ₹1,644 crore in Q1FY25. The results beat Bloomberg estimates of ₹735 crore revenue and a net loss of ₹452 crore for the quarter.

Ola Electric shares surged over 19% to close at ₹47.46 on the NSE as the company reported improvements in key operating and financial metrics on a sequential basis.

Sequentially, revenue rose 36% from ₹611 crore in Q4FY25, while net loss narrowed sharply from ₹870 crore in the January-March quarter.