Ola Electric’s Auto Business Turns Profitable in Q2 FY26; Gross Margins Expand to 30.7%

Ola Electric Mobility Limited announced that its auto business achieved profitability for the first time in Q2 FY26. The company reported a gross margin of 30.7%. The milestone marks a significant step toward sustainable growth in India’s evolving electric vehicle market.

Ola Electric Records Positive EBITDA and Margin Growth

For the quarter ended September 30, 2025, Ola Electric reported positive auto EBITDA of 0.3%, compared to -5.3% in Q1 FY26. The company’s gross margin rose sequentially by 510 basis points to 30.7%, surpassing most internal combustion engine peers. Revenue from operations stood at ₹690 crore, supported by total deliveries of 52,666 vehicles during Q2 FY26. The company’s cost-optimisation measures helped reduce auto operating expenses to ₹258 crore from ₹308 crore, while consolidated operating expenses fell to ₹416 crore from ₹451 crore.

Cash Flow Turns Positive and FY26 Revenue Projection 

Ola Electric’s cash flow from operations (CFO) was -₹40 crore. This was primarily due to a one-time festive inventory build-up of ₹55 crore. Adjusting for this, the CFO was ₹15 crore, demonstrating that the auto business is now cash generative. Consolidated revenue for FY26 is projected between ₹3,000 crore and ₹3,200 crore, with new Ola Shakti volumes beginning in Q4 to grow and diversify the top line. 

Launch of OLA Shakti(शक्ति) 

In October 2025, Ola Electric launched OLA Shakti(शक्ति), India’s first residential Battery Energy Storage System (BESS), powered by in-house Bharat 4680 cells. The system offers double the lifespan of lead-acid batteries and supports rooftop solar integration. 

The company expects ₹100 crore revenue from Shakti(शक्ति) in Q4 FY26 and ₹1,000-1,200 crore annually in FY27. Its cell business, now commissioned with 2.5 GWh capacity, aims to reach 5.9 GWh by March 2026 and expand to 20 GWh by the second half of FY27.

Ola’s Product Innovation and HyperService 

Ola’s Gen 3 platform and the Roadster model continue to gain traction, with Q2 sales rising 4x over Q1 and peaking at 450 units per day during the festive period. Roadster now contributes about 15% of total sales. 

The company achieved India's first government-certified ferrite motor in October 2025, eliminating dependency on rare-earth imports while delivering equivalent performance at lower cost. The company is also developing an in-house ADAS platform along with an in-house ABS, launching with MoveOS 6 in early FY27. 

The company has also launched HyperService, expanding access to genuine parts for customers and third-party garages, opening new high-margin revenue streams.

Ola Electric Share Price Performance

On November 6, 2025, Ola Electric share price opened at ₹50.55 on NSE, above the previous close of ₹50.06. During the day, it surged to ₹50.55 and dipped to ₹49.00. The stock is trading at ₹49.40 as of 10:50 AM. The stock registered a decline of 1.32%.

Over the past week, it has declined by 3.10%, over the past month, it has declined by 6.10%, and over the past 3 months, it has moved up by 22.55%.

Read More: Festive Demand Propels Bajaj Auto to Leading Position in EV 2 Wheeler Sales!

Conclusion

Ola Electric’s Q2 FY26 performance underscores its transformation into a profitable, integrated EV enterprise. With expanding battery manufacturing, the launch of Ola Shakti(शक्ति), and continued margin discipline, the company is well-positioned to lead India’s electric mobility and energy transition while strengthening its technological foundation for global competitiveness.

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