Ola Electric Q2: Auto Unit Profitable as Revenue Contracts

Ola Electric Mobility Ltd's auto arm reached its first quarterly profit milestone even as the group's results showed only partial recovery. The company recorded a consolidated net loss of Rs 418 crore for Q2 FY26, improved from Rs 495 crore a year earlier.

Operating income dropped sharply, with revenue from operations down 43% year-on-year to Rs 690 crore from Rs 1,214 crore in the same quarter last year, reflecting weaker demand over the period.

Margins Strengthen as Costs Decline

Operating EBITDA loss narrowed to Rs 203 crore from Rs 379 crore a year earlier, indicating tighter cost control. The auto division moved into a slight positive EBITDA of 0.3%, up from -5.3% in the previous quarter. Gross margins improved by 510 basis points sequentially to 30.7%, pointing to efficiency gains despite the revenue slowdown.

Within the auto business, operating expenses fell to Rs 258 crore from Rs 308 crore in Q1, while consolidated operating expenses decreased to Rs 416 crore from Rs 451 crore. Ola expects auto operating costs to reduce further to about Rs 225 crore by Q1 FY27.

Strong Sales of Roadster Model

The Roadster was a standout, with sales rising fourfold from Q1 and peaking at around 450 units per day during the festive season. The model now makes up roughly 15% of Ola’s total unit sales.

Expansion in Manufacturing and Battery Business

Ola commissioned 2.5 GWh of capacity at its Gigafactory, the country’s first operational gigawatt-scale cell plant. The company aims to reach 5.9 GWh by March 2026 and plans to expand capacity to about 20 GWh in the second half of FY27.

The firm also introduced Ola Shakti, a home battery energy storage system built on its 4680 Bharat Cells. Management expects the product to contribute roughly Rs 100 crore in Q4 FY26 and between Rs 1,000–1,200 crore in FY27, with estimated gross margins of 40–50%.

Outlook for the Year

Ola is targeting delivery of around 100,000 units in the second half of FY26 and forecasts consolidated full-year revenue of Rs 3,000–3,200 crore. The auto segment’s gross margins are expected to approach 40%, with segment EBITDA around 5% by Q4, and the cell business beginning to add to revenue.

After the Q2 update, Ola Electric shares eased slightly, trading at Rs 49.4 on the NSE, down about 1.3% from the prior close.