Ola Electric's latest quarterly numbers show two things at once: a company shrinking its sales and cutting its costs while it rebuilds the way it sells scooters. For the second quarter of FY27, the electric two-wheeler maker reported a consolidated net loss of ₹362 crore. That is narrower than the ₹418 crore loss in Q2 FY26, but revenue from operations fell 39 per cent to ₹421 crore from ₹690 crore, according to a regulatory filing.

Other figures show that the business is still under pressure. EBITDA loss widened to ₹218 crore from ₹203 crore. Gross margin slipped to 29.93 per cent from 30.9 per cent a year earlier. In absolute terms, gross margin fell to ₹126 crore from ₹213 crore, which shows how much lower volumes have reduced earnings.

Where the savings came from

Costs are where Ola Electric is clearly making progress. Operating expenses fell to ₹369 crore from ₹472 crore in the same quarter last year. They were also below the ₹390 crore reported in the June quarter of FY27, excluding a one-time non-cash reversal of ₹57 crore in that period.

The company expects expenses to fall further. The main reason is a major change in strategy: Ola Electric is moving away from the direct-to-consumer model that once set it apart from older two-wheeler makers.

From company stores to dealer showrooms

Ola Electric stopped taking orders at company-operated stores from November 1. It expects most of those outlets to close by December, and all new production will be sent through dealer partners.

As of November 8, the company had 255 dealer partners running 319 stores across India. It plans to expand to around 450 stores by December 2026 and about 700 by March 2027.

For a brand that built its early identity on owning the customer relationship, this is a significant change. A dealer network moves inventory, showroom costs and much of the customer-facing work to partners. It also makes Ola Electric's sales model look more like that of the established two-wheeler companies it set out to disrupt.

Demand claims and the supply question

Ola Electric says wholesale orders and dispatches to dealers are rising, with repeat orders making up a growing share of demand. According to the company, demand is currently higher than supply. It says the main limit is how fast its supply chain can expand, not its manufacturing capacity.

After staying largely flat for several months, production has started rising month-on-month. The company expects to make around 25,000 vehicles in December. Dealer inventory is about 15 days, and some of the oldest dealerships hold less than a week's stock.

What to watch

The next few quarters will test whether lean inventory and repeat dealer orders turn into steady revenue growth. For now, Ola Electric has shown it can reduce costs. Whether the dealer-led model can bring back the sales it has lost is still an open question.

With inputs from IANS