Ola Electric Targets Volume Growth and Margin Improvement in FY27

Ola Electric said demand and registrations improved towards the end of FY26 after the company spent several months addressing operational issues, reducing inventory and stabilising customer service. 

AS per PTI news reports, Founder and Chairman Bhavish Aggarwal said the company slowed parts of its operations during Q4 FY26 to focus on execution and cost control. Ola resumed scaling volumes from mid-March onwards. 

The registrations increased from around 10,000 units in March to nearly 12,000 units in April. May registrations are to reach 14,000-15,000 units. Ola has guided for 40,000-45,000 orders and consolidated revenue of ₹500-550 crore in Q1 FY27. 

Margins Rise, Costs Decline 

Ola Electric reported consolidated gross margins of 38.5% in Q4 FY26, compared with 34.3% in Q3 FY26 and 13.7% in the corresponding quarter last year. Excluding production-linked incentive benefits, gross margin stood at 33.5%. 

Operating expenses, including lease costs, fell to ₹428 crore in Q4 FY26 from ₹844 crore a year earlier. The company said its operating cost base remains largely fixed because of its vertically integrated structure. 

Management said monthly operating expenses could reduce further to around ₹100-120 crore over the next few quarters as utilisation levels improve. 

Breakeven and Cash Flow 

The company said consolidated adjusted operating EBITDA breakeven is achievable at monthly volumes of 20,000-25,000 units, depending on pricing and commodity costs. 

Ola said current monthly volumes are around 17,000-18,000 units, with additional growth expected through better delivery timelines and inventory availability. Inventory levels across its sales network have reduced to around 3 to 4 days. 

Q4 FY26 was also the company’s first operating cash flow positive quarter. Consolidated cash flow from operations stood at ₹91 crore, while the auto business generated ₹173 crore in free cash flow. 

Motorcycle Business Adds Volumes 

Motorcycles contributed around 15% of Ola’s overall volumes during the quarter. The company said it holds more than 50% share in the electric motorcycle segment, led by the Roadster portfolio. 

Warranty costs declined from over ₹500 crore in FY25 to ₹59 crore in FY26. Ola said annual maintenance capital expenditure is expected to remain around ₹50 crore going forward. 

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Ola Electric Share Price Performance 

As of May 22, 2026, 3:30 pm, Ola Electric share price closed at ₹36.01, up 1.41% from the previous closing price. 

Conclusion  

Ola Electric reported stronger margins and positive operating cash flow in Q4 FY26, while recovery in registrations and motorcycle sales is expected to support growth in FY27. 

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