The electric two-wheeler manufacturer’s consolidated net loss narrowed to Rs 418 crore, compared to a loss of Rs 495 crore in the year-ago period. However, the company said its total revenue from operations for the second quarter of FY26 stood at Rs 690 crore, reflecting a 43% decline year-on-year compared to Rs 1,214 crore reported in the September 2024 quarter.
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.
Going forward, Ola said it expects its revenue mix to become more diversified and balanced over the coming quarters as its energy products scale up. The company anticipates further improvement in gross margins, supported by higher volumes of its Gen 3 vehicles, deeper in-house cell integration, and ongoing cost optimisation initiatives.
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For the second half of FY26, Ola is targeting total deliveries of around 100,000 units. It has pegged consolidated revenue for FY26 in the range of Rs 3,000–3,200 crore, reiterating that profitability will remain the key priority over aggressive volume growth. Within the auto business, gross margins are expected to reach about 40% by Q4, with segment EBITDA at around 5%. The company’s cell business is also set to start generating revenue from Q4 FY26, through both inter-group supply and external sales of Ola Shakti units. Gross margins for the segment are projected to stabilise at around 30% by early FY27, as volumes build and production efficiencies kick in. On the capital expenditure front, Ola has earmarked Rs 100–150 crore for its auto segment in Q3 and Q4 FY26 and expects the business to turn free cash flow positive by the end of FY26. Meanwhile, investments in the cell business will continue as the company moves toward completing installation of its 5.9 GWh Gigafactory, primarily financed through project funding from the State Bank of India. Ola also plans to initiate the next phase of capacity expansion to 20 GWh in the first half of FY27, coinciding with the scale-up of its grid-scale energy offerings and integration of auto-cell operations.
At about 9:45 am, shares of the company were trading at Rs 46, down 3% from the last close on the NSE. Ola Electric Mobility shares are down 46% on a year-to-date basis.
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