Ola Electric Records First Quarterly Auto Profit as Q2 Revenue Contracts

Post by : Bianca Suleiman

Ola Electric Mobility Ltd reported a milestone for its auto business in Q2 FY26, achieving a quarterly profit even as the consolidated entity recorded a narrower net loss of Rs 418 crore compared with Rs 495 crore a year earlier.

Revenue from operations contracted sharply, down 43% year-on-year to Rs 690 crore from Rs 1,214 crore in the comparable quarter, reflecting softer sales during the period.

Improved Margins and Cost Efficiency

The company reduced its operating EBITDA loss to Rs 203 crore from Rs 379 crore a year ago, indicating tighter cost control. The auto division moved into positive EBITDA territory at 0.3%, versus -5.3% in the prior quarter. Gross margins expanded sequentially by 510 basis points to 30.7%, pointing to improved unit economics despite weaker top-line performance.

Auto operating expenses fell to Rs 258 crore from Rs 308 crore in Q1, and consolidated operating costs declined to Rs 416 crore from Rs 451 crore. Management expects auto operating costs to ease further to about Rs 225 crore by Q1 FY27.

Strong Sales of Roadster Model

The Roadster emerged as a key driver, with sales quadrupling from the previous quarter and peaking at roughly 450 units per day during the festive season. The model now represents about 15% of Ola’s overall sales mix.

Expansion in Manufacturing and Battery Business

Ola has commissioned 2.5 GWh of capacity at its Gigafactory, India’s first operating gigawatt-scale cell plant. The company targets 5.9 GWh by March 2026 and plans to scale capacity to 20 GWh in the second half of FY27.

Ola also unveiled Ola Shakti, a residential battery energy storage system built on its in-house 4680 Bharat Cells. The business is projected to contribute about Rs 100 crore in Q4 FY26 and between Rs 1,000–1,200 crore in FY27, with targeted gross margins of 40–50%.

Outlook for the Year

For H2 FY26, Ola targets deliveries of around 100,000 units and expects consolidated full-year revenue of Rs 3,000–3,200 crore. The company projects auto gross margins near 40% and segment EBITDA around 5% by Q4, with the cell business beginning to add to revenues.

Following the Q2 announcement, Ola Electric’s shares edged down, trading at Rs 49.4 on the NSE, a 1.3% decline from the previous close.