Ola Electric announced that its auto business achieved profitability for the first time, supported by a 30.7% gross margin in Q2 FY26. The company’s auto business is now cash-generative. Q2 FY26 consolidated revenue stood at ₹690 Cr. Ola has commissioned its Gigafactory with 2.5 GWh capacity. The company expects ₹100 Cr revenue in Q4 FY26 from Ola शक्ति (BESS) and ₹1,000-1,200 crore in annual revenue in FY27.
Financial Performance in Q2 FY26
Ola Electric has achieved a significant milestone in Q2 FY26, with its auto business turning profitable for the first time. This was supported by a strong gross margin of 30.7%. The company’s auto business is now cash-generative. Ola Electric also achieved positive EBITDA of 0.3% in the auto business, a marked improvement from -5.3% in Q1 FY26.
The company’s consolidated revenue from operations for Q2 FY26 stood at ₹690 Cr, with total vehicle deliveries of 52,666.
Key Business Highlights
Ola Electric commissioned its Gigafactory with a capacity of 2.5 GWh and is on track to reach 5.9 GWh by March 2026. Roadster sales continued to grow with Q2 sales being 4x of Q1, representing about 15% of overall sales. HyperService was launched, expanding access to genuine parts for customers and third-party garages.
Ola शक्ति (BESS) Launch
The company launched Ola शक्ति, India’s first residential Battery Energy Storage System (BESS) built with Ola’s in-house 4680 Bharat Cells. The company anticipates generating ₹100 Cr in revenue in Q4 FY26 and between ₹1,000 Cr and ₹1,200 Cr in annual revenue in FY27 from this venture.
Cost Management and Efficiency
Ola Electric has demonstrated strong cost control with auto operating expenses reduced to ₹258 Cr in Q2 FY26, a 52% reduction compared to Q3 FY25. Consolidated operating expenses decreased to ₹416 Cr from ₹451 Cr. The company anticipates further reduction in auto opex to approximately ₹225 Cr by Q1 FY27.
Product Innovation
The company achieved India’s first government-certified ferrite motor in October 2025. Ola is also developing an in-house ADAS platform along with in-house ABS, scheduled for launch with MoveOS 6 in early FY27.
Future Outlook
For H2 FY26, Ola Electric targets total auto deliveries of approximately 100,000 units. The company now expects FY26 consolidated revenue of approximately ₹3,000-3,200 Cr. The auto segment is projected to exit Q4 with gross margins around 40%.
Source: BSE
