Ola Electric Mobility Q2 FY26: Consolidated net loss at ₹418 crore, revenue declines 43% YoY

Ola’s revenue from operations stood at ₹690 crore in Q2 FY26, declining 43% from ₹1,214 crore in Q2 FY25. The firm has recorded total deliveries of 52,666 vehicles in Q2 FY26.

The company’s EBITDA loss for the reporting quarter stood at ₹203 crore in contrast to ₹379 crore year-on-year (YoY).

The company’s auto segment reported a positive EBITDA of 0.3% in Q2 FY26, a sharp improvement from -5.3% in the previous quarter, marking its first-ever quarter of profitability in the auto business.

Ola Electric also highlighted that its auto gross margin expanded sequentially by 510 basis points to 30.7%—surpassing most ICE two-wheeler peers—with a minimal PLI contribution of just 2%. “This marks a significant inflection point in the company's journey toward sustainable profitability supported by strong gross margin expansion and disciplined cost management,” the firm said in a statement.

The two-three-wheeler maker said its cost optimisation efforts have continued to deliver results, with auto operating expenses reduced to ₹258 crore from ₹308 crore in Q2—a 52% reduction compared to Q3 FY25. Its consolidated operating expenses were further reduced to ₹416 crore from ₹451 crore.

“The company expects auto opex to decline to approximately ₹225 crore by Q1 FY27, with consolidated opex targeted at ₹350-375 crore through operational consolidation and technology-driven efficiencies,” it added.

Ola Electric’s reported operating cash flow stood at -₹40 crore, largely impacted by a one-time festive inventory build-up of ₹55 crore. Adjusting for this, the cash flow from operations was ₹15 crore, indicating that the auto business has turned cash generative.

Cell business

In the second quarter, Ola’s Cell business commissioned 2.5 GWh of installed capacity, making it India’s first operational gigawatt-scale cell manufacturing facility. The company aims to expand this capacity to 5.9 GWh by March 2026.

The company has commenced customer deliveries of its first products powered by Bharat 4680 cells. Over the next 6–9 months, all automotive products are expected to transition to Ola’s in-house cells, establishing a steady baseline demand of 2–3 GWh annually for its cell business.

Ola is also the largest beneficiary under the Government of India’s Advanced Chemistry Cell (ACC) PLI scheme and expects to begin claiming incentives from Q4 FY26 onwards.

Business outlook

For H2 FY26, the company targets total auto deliveries of approximately 100,000 units, reflecting a strategic focus on margin discipline in a hyper-competitive market. On a full-year basis, Ola expects FY26 consolidated revenue of approximately ₹3,000-3,200 crore, with new Ola Shakti volumes beginning in Q4 to grow and diversify the top line.

“The auto segment is expected to exit Q4 with gross margins around 40% and segment EBITDA of around 5%. The cell business will start contributing to revenue from Q4 onwards through inter-group supply and external Shakti sales, with cell gross margins expected to stabilise at 30% by early FY27,” Ola Electric said in a statement.

Following the earnings, shares of Ola Electric were trading at ₹49.45 apiece on the National Stock Exchange, falling 1.22% at 10:55 AM.