Ola Electric Posts First Auto Profit, Revenue Slips in Q2 FY26

Ola Electric Mobility Ltd has turned a corner in its auto business, posting its first-ever quarterly profit despite a notable decline in revenue. The electric two-wheeler maker reported a consolidated net loss of Rs 418 crore for Q2 FY26, narrower than last year’s Rs 495 crore.

Revenue from operations, however, fell sharply by 43% year-on-year to Rs 690 crore from Rs 1,214 crore in the same period last year, reflecting weaker sales during the quarter.

Improved Margins and Cost Efficiency

The company’s operating EBITDA loss narrowed to Rs 203 crore from Rs 379 crore a year earlier, signaling better cost management. For the auto segment, EBITDA turned positive at 0.3%, compared with -5.3% in the previous quarter. Gross margins expanded sequentially by 510 basis points to 30.7%, demonstrating efficiency gains despite lower topline.

Operating expenses in the auto segment declined to Rs 258 crore from Rs 308 crore in Q1, while consolidated operating expenses dropped to Rs 416 crore from Rs 451 crore. Ola anticipates auto operating costs to further decrease to around Rs 225 crore by Q1 FY27.

Strong Sales of Roadster Model

The Roadster model proved to be a standout performer, with sales quadrupling from Q1, peaking at 450 units per day during the festive season. It now accounts for roughly 15% of Ola’s total sales.

Expansion in Manufacturing and Battery Business

Ola commissioned 2.5 GWh capacity at its Gigafactory, India’s first operational gigawatt-scale cell manufacturing facility. The company targets 5.9 GWh by March 2026 and plans an expansion to 20 GWh by the second half of FY27.

The firm also launched Ola Shakti, a residential battery energy storage system built with in-house 4680 Bharat Cells. The product is expected to generate Rs 100 crore in Q4 FY26 and Rs 1,000–1,200 crore in FY27, with projected gross margins of 40–50%.

Outlook for the Year

For the second half of FY26, Ola aims to deliver around 1,00,000 units and expects full-year consolidated revenue of Rs 3,000–3,200 crore. Auto gross margins are projected at about 40% and segment EBITDA at 5% by Q4, while the cell business is expected to start contributing to revenue.

Following the Q2 results, Ola Electric’s stock dipped slightly, trading at Rs 49.4 on NSE, down 1.3% from the previous close.