OLA Electric announced that it achieved auto EBITDA profitability for the first time in Q2 FY26, supported by a 30.7% gross margin. The company’s auto business has also turned cash-generative. OLA Gigafactory commissioned a 2.5 GWh capacity, scaling to 5.9 GWh by March 2026. The company also launched HyperService to improve customer experience and lower costs.
Financial Performance Highlights
OLA Electric reported several key achievements in Q2 FY26:
- Achieved Auto EBITDA profitability, supported by a 30.7% gross margin and a ~52% reduction in operating expenses compared to Q3 FY25.
- The auto business turned cash-generative, with underlying cash flow from operations of ₹15 Cr.
- Consolidated revenue reached ₹690 Cr, with 52,666 E2W deliveries.
Operational Milestones
The company also achieved significant operational milestones:
- Launched HyperService to enhance customer service and unlock a high-margin parts business with 50%+ gross margin potential.
- OLA Gigafactory commissioned 2.5 GWh capacity, with plans to scale to 5.9 GWh by March 2026.
- Expanded into Energy with Ola शक्ति, introducing India’s first residential BESS.
Financial Metrics
Key financial metrics for Q2 FY26 include:
- Auto Gross Margin: 30.7%
- Auto EBITDA Margin: 0.3%
- Consolidated EBITDA Margin: -18.1%
Strategic Outlook
OLA Electric is now focused on scaling profitably and expects to reduce opex to about ₹350 Cr – ₹375 Cr by Q1 FY27 through operational consolidation and efficiencies. The company aims for a gross margin of close to 40% by the end of FY26 for its Auto segment.
Cell Business Expansion
OLA Electric is expanding its cell manufacturing capacity to 20 GWh by the second half of FY27. The company is also targeting ₹100 Cr revenue in Q4 FY26 and ₹1,000 Cr – ₹1,200 Cr in annual revenue in FY27 with a 40-50% gross margin from its Energy business.
Source: BSE
