Ola Electric Mobility reported its Q4 FY26 performance, marking its first operating cash-flow positive quarter with ₹91 crore in consolidated CFO. Despite a lower volume quarter, the company achieved an industry-leading 38.5% gross margin. Strategic highlights include significant service stabilization, a V-shaped sales recovery, and major milestones in cell manufacturing and energy storage, including the 6 GWh Gigafactory ramp-up and the launch of the Shakti energy platform.
Financial Performance Overview
For the financial year ended March 31, 2026, Ola Electric reported consolidated revenue of ₹2,253 crore. The Q4 FY26 results were defined by a rigorous reset of business fundamentals. Notably, consolidated gross margins improved significantly to 38.5% in Q4 FY26, up from 13.7% in Q4 FY25. Operating expenses were also brought under control, reducing from ₹844 crore in Q4 FY25 to ₹428 crore in Q4 FY26.
Operational Milestones and Service Recovery
Service improvements were a critical success factor this quarter. Average service TAT (turnaround time) was reduced by 88%, from 9 days in October 2025 to nearly 1 day by March 2026. This operational stability has catalyzed a strong sales rebound, with April 2026 registrations rising 20% month-on-month. Furthermore, the company successfully reduced warranty costs, which dropped to ₹59 crore for the year, compared to ₹555 crore in FY25.
Cell Manufacturing and Energy Storage
The company is transitioning its Gigafactory from the validation phase to full commercial scale. Installation of the 6 GWh capacity is now largely complete. The Shakti energy storage platform has been successfully built and is entering the market with over 50,000 customer leads. Looking ahead, the company is developing Mahashakti for utility-scale and C&I storage, with a product launch scheduled for CY 2027.
FY27 Strategic Priorities
The management has outlined clear priorities for the coming fiscal year: sustaining service consistency, scaling volumes with discipline, and increasing the utilization of its existing gross block. The company expects Q1 FY27 orders to reach 40,000 to 45,000 units, nearly doubling the volumes seen in the previous quarter. By leveraging vertical integration and in-house cell technology, Ola aims to maintain its industry-leading unit economics while scaling its automotive and storage businesses.
Source: BSE
