In a landmark quarter, Ola Electric reported its first-ever profitability in the auto segment during Q2 FY26, marking a major milestone in the company’s journey toward sustainable growth. The company achieved a positive EBITDA of 0.3%, a sharp turnaround from -5.3% in Q1 FY26, supported by a robust 30.7% gross margin—among the highest in the two-wheeler industry.
Consolidated revenue for the quarter stood at ₹690 crore, driven by 52,666 vehicle deliveries. The auto segment also turned cash-generative, recording a ₹15 crore operating cash flow, adjusted for a one-time festive inventory build-up.
Strong Margins and Cost Efficiency
Ola Electric attributed its improved profitability to vertical integration and strict cost discipline. Auto operating expenses fell to ₹258 crore, down from ₹308 crore, while consolidated operating costs dropped to ₹416 crore. The company projects further reductions to ₹225 crore in auto opex and ₹350–375 crore consolidated opex by Q1 FY27, aided by operational consolidation and technology-led efficiencies.
Product Momentum: Roadster and Indigenous Technology
The company’s Roadster model saw exceptional growth, with Q2 sales four times higher than Q1 and festive season peaks of 450 units per day, now contributing 15% of total sales.
In a technological leap, Ola achieved India’s first government-certified ferrite motor, reducing dependency on rare-earth imports while maintaining top-tier performance. The company is also developing in-house ADAS and ABS systems, to debut with MoveOS 6 in early FY27.
Expanding Customer Ecosystem with HyperService
Ola launched HyperService, an initiative opening its ecosystem to third-party garages and independent mechanics, expanding access to genuine parts. Currently, parts contribute only 2% to total revenue, compared to the industry average of 10–15%. Ola aims to scale this with over 50% gross margins, balancing affordability for customers with high profitability.
Cell Business and Gigafactory Expansion
Q2 FY26 also marked a milestone in Ola’s cell manufacturing journey, with the commissioning of 2.5 GWh gigafactory capacity, India’s first at this scale. The company plans to scale this to 5.9 GWh by March 2026 and further to 20 GWh by FY27, under the government’s Advanced Chemistry Cell PLI scheme.
Vehicles powered by Ola’s indigenous 4680 Bharat Cells have begun customer deliveries, with complete migration of all models expected within the next 6–9 months.
“Ola शfRत”: India’s First Residential BESS
In October 2025, Ola ventured into the energy storage sector with Ola शfRत, India’s first residential Battery Energy Storage System (BESS) built with its in-house 4680 Bharat Cells. Designed to integrate with rooftop solar setups, the system offers 5–10 hours of home backup, twice the lifespan, and higher efficiency than traditional lead-acid batteries.
The company anticipates ₹100 crore in revenue in Q4 FY26 and ₹1,000–1,200 crore annually in FY27 from this new vertical, with 40–50% gross margins. Ola also plans to introduce containerized storage systems (100 kWh–5 MWh) for commercial and industrial use by Q1 FY27.
Business Outlook
Ola Electric targets 1 lakh auto deliveries in H2 FY26, maintaining focus on margin discipline. The company expects FY26 consolidated revenue between ₹3,000–3,200 crore, with the auto segment’s gross margin projected to rise to 40% and segment EBITDA to around 5% by Q4.
With its cell business poised to contribute meaningfully from Q4 onwards and energy storage revenues expanding rapidly, Ola Electric is now steering toward a multi-vertical clean energy ecosystem — integrating EV manufacturing, battery innovation, and energy storage solutions under one sustainable framework.
