The company said its consolidated total revenue from operations for the second quarter of FY26 stood at Rs 690 crore, reflecting a 43% year-on-year (YoY) decline compared to Rs 1,214 crore reported in the September 2024 quarter.
Auto business turns EBITDA positive
Ola Electric said it achieved Auto EBITDA profitability for the first time, supported by a gross margin of 30.7%, up 510 basis points quarter-on-quarter. Operating expenses were reduced by around 52% compared to the previous quarter.The company said its auto business turned cash-generative during the quarter, with underlying cash flow from operations at Rs 15 crore, though reported at a negative Rs 40 crore due to one-time festive inventory build-up.
Outlook and financial guidance
Ola said it expects a more balanced and diversified revenue mix over the next few quarters as energy products ramp up. Gross margins are projected to strengthen further with higher Gen 3 volumes, in-house cell integration, and continued cost optimisation.
For the second half of FY26, the company targets total deliveries of about 100,000 units. Consolidated revenue for FY26 is projected at around Rs 3,000–3,200 crore, with a continued focus on profitability over volume growth. The auto segment’s gross margins are expected to reach about 40% by Q4, with segment EBITDA of around 5%.
The cell business is expected to start contributing to revenue from Q4 FY26 through inter-group supply and external sales of Ola Shakti units. Gross margins for the cell segment are expected to stabilise at around 30% by early FY27.
Capex and cash flow outlook
For the auto segment, capital expenditure for Q3 and Q4 FY26 is estimated between Rs 100 crore and Rs 150 crore. Ola expects its auto business to be free cash flow positive by the end of FY26.
Capital spending on the cell business will continue toward completing the 5.9 GWh Gigafactory installation, largely funded by project finance from the State Bank of India, Ola said. The company also plans to begin the next capacity expansion to 20 GWh in the first half of FY27, aligned with the ramp-up of grid-scale energy products and auto-cell integration.
Ola described FY26 as a transition year focused on establishing sustainable profitability in its auto business while building its energy vertical. By FY27, the company expects to have a broader revenue base, higher structural margins, and stronger cash conversion, setting up for long-term growth across both auto and energy segments.
Shares of the company fell as much as 2.2% on Thursday to Rs 48.95 on the BSE after the results announcement.