Ola Electric announced its Q3 FY26 results, marked by a structural operating model reset focused on cost realignment and service execution. The company delivered a record consolidated gross margin of 34.3%, up 15.7 percentage points year-over-year. Operational highlights include reducing quarterly opex from a peak of ₹840 Cr to ₹484 Cr, with a target of ₹250-300 Cr soon, setting the EBITDA breakeven at approximately 15,000 units monthly.
Q3 FY26 Performance: Record Margins and Structural Reset
Ola Electric Mobility Limited announced its results for the quarter ending December 31, 2025, characterizing the period as a structural reset for the company. This reset involved realigning the retail footprint, cost structure, and operating model to establish a sustainable steady state despite slower EV penetration growth.
The company achieved a record consolidated gross margin of 34.3% in Q3 FY26. This represents a significant expansion of 15.7 percentage points Year-over-Year (YoY) from 18.6% in Q3 FY25 and 3.4 percentage points Quarter-over-Quarter (QoQ). This performance is attributed to the advantages of its vertically integrated model, Gen 3 platform economics, and disciplined execution.
Consolidated revenue from operations stood at ₹470 Cr, with total electric two-wheeler (E2W) deliveries reaching 32,680 units in the quarter.
Operational Efficiency and Cost Structure Transformation
A central theme of the announcement was the execution of a structural operating model reset. Quarterly operating expenditure (opex) was successfully reduced from a peak of ₹840 Cr (Q4 FY25) down to ₹484 Cr in Q3 FY26. The roadmap projects further reduction to quarterly opex levels of ₹250-300 Cr over the next couple of quarters.
These cost control measures have effectively lowered the EBITDA breakeven point to approximately 15,000 units monthly. The current manufacturing footprint is cited as capable of supporting 3-4x volume scaling with only minimal incremental fixed costs, positioning the company for improved operating leverage as demand recovers.
Additionally, the company highlighted significant improvements in customer service metrics:
- Service backlogs have reduced by nearly half, moving from 14 days at peak to 7-8 days currently.
- Approximately 80% of service requests are now being completed on the same day.
Gigafactory Milestones and Vertical Integration
Q3 FY26 marked a major milestone in the Gigafactory ramp-up, reinforcing it as a long-term structural moat for Ola Electric. Key achievements include:
- Doubling cell production Quarter-over-Quarter (QoQ) to 72,418 cells.
- Achieving the first commercial deployment of in-house 4680 Bharat Cells into customer vehicles.
- Launching Ola शक्ति, its first residential Battery Energy Storage System (BESS) product powered directly by Gigafactory output.
The Gigafactory is currently operating at approximately 2.5 GWh of installed capacity, with plans to scale up to 6 GWh by March 2026. Ola Electric claims to be the only Indian company to operationalize a scaled Gigafactory.
Outlook
The spokesperson stated that Ola Electric is now positioned at the cusp of a turnaround, driven by the Gen 3 platform, deepening vertical integration, structural cost actions, and improved service reliability. The company aims to capitalize on the next phase of India’s electrification growth while creating sustainable long-term value.
Source: BSE
