Ola Electric Q2: Loss Narrows 15% To INR 418 Cr, Auto Segment Turns EBITDA Positive

EV maker Ola Electric managed to trim its consolidated net loss by over 15% to INR 418 Cr in the second quarter of the ongoing fiscal year (Q2 FY26) from INR 495 Cr in the same quarter last year on the back of improvement in margins. Sequentially, loss declined 2.3% from INR 428 Cr.

Meanwhile, the company’s revenue from operations declined 43% YoY to INR 690 Cr during the quarter under review from INR 1,214 Cr in the second quarter of FY25. Sequentially, it declined 16.7% from INR 828 Cr.

In line with the decline in revenue, Ola Electric saw its total expenses fall nearly 44% to INR 893 Cr in Q2 FY26 from INR 1,593 Cr a year ago.

The company said its automotive segment turned EBITDA positive during the quarter, posting an EBITDA of INR 2 Cr as against an EBITDA loss of INR 162 Cr a year ago. Meanwhile, Ola Electric’s overall EBITDA loss declined nearly 51% to INR 137 Cr in the quarter from INR 279 Cr a year ago.

While the auto segment achieved EBITDA profitability, the company saw a sharp 47% decline in total vehicle deliveries to 52,666 units in the second quarter of FY26 from 98,619 units deliveries in the same quarter last year. Sequentially, deliveries fell 23% from 68,192 units.

Focus On Profitability Amid Competition In Automotive Segment

Ola Electric’s segment which deals with the designing, manufacturing, and sale of electric two-wheelers, such as S1 Pro+, S1 Air, S1X+, Roadster X+ models, saw its revenue decline 43.3% to INR 688 Cr during the quarter under review from INR 1,214 Cr in the September quarter of FY25.

The company said that it is now focusing on scaling profitability. Talking about the competitive landscape, Ola Electric said that the competition has intensified while the market remains flat.

“Many OEMs have chosen to pursue short-term market share through aggressive discounting and elevated channel incentives, at the cost of profitability. We have taken the opposite approach — focusing on improving our cost structure, deepening product quality and reliability, and driving margin expansion. This positions us to grow in a margin accretive way and gain profitable share as the market returns to growth,” Ola Electric said in its shareholder letter.

The company said the auto segment’s gross margin improved to 30.7% in Q2 FY26 from 18.5% a year ago and 25.6% in Q1 FY26. It managed to reduce its auto opex to INR 258 Cr in the September quarter from INR 308 Cr in the first quarter of FY26.

Ola Electric said that the sales of its electric bike Roadster were 4X of Q1 during the quarter under review and scaled to a peak of 450 units in a day during the festive period. The ebike currently accounts for about 15% of the company’s overall sales, it said, without giving the exact number of sales during the quarter.

Going ahead, the company expects lower volumes than the guidance it gave in Q1 because of the “focus on margin and cash discipline” in a hyper-competitive market. Notably, in its Q1 shareholder letter, the company had said it expects 3.25 Lakh to 3.75 Lakh vehicle sales in FY26 and the company’s revenue to be around INR 4,200 Cr to INR 4,700 Cr.

On its vehicle service business, HyperService, the company said that auto parts revenue currently contributes around 2.5% of its operating revenue as against an industry average of 10-15%. As such, the company sees it as an avenue for growth with gross margins above 50%.

Notably, last month, Ola Electric said that it will convert HyperService into an open platformfor EV spare parts and services to allow the purchase of its genuine spare parts directly through the Ola Electric Customer App and website.

The company, in the shareholder letter, said that direct distribution will help it maintain lower customer prices while earning higher margins than the industry average. It expects the revenue and margin benefit to accrue over the next few months.

Ola Electric Plans Foray In Commercial Energy Storage System

Ola Electric’s cell segment, which deals with manufacturing of lithium-ion battery cells, reported a revenue from operations of INR 4 Cr in the quarter under review as against INR 1 Cr in the same quarter last year. Sequentially, this number grew from INR 3 Cr.

Meanwhile, the segment’s net loss skyrocketed 61% to INR 79 Cr in Q2 FY26 from INR 49 in Q2 FY25.

The company said that it has started integrating its in-house built 4680 Bharat cells with its vehicles and deliveries have begun for some of those. Over the next 6-9 months, Ola Electric expects all its automotive products to migrate to the in-house cells, creating a baseline demand of 2-3 GWh annually for the cell business.

To further boost the utilisation of its cell manufacturing capabilities, the company last month announced its foray into the residential battery energy storage system (BESS) solution segment with the launch of Ola Shakti.

Ola Electric said it achieved a cell capacity of 2.5 GWh in Q2 FY26 and expects to reach 5.9 GWh by March 2026 and 20 GWh by H1 FY27.

This is a sharp change from what the company said just a quarter ago. In the Q1 shareholder letter, Ola Electric said that it didn’t foresee the need to expand beyond 5 GWh till FY29 for EVs.

The reason behind this increase is the company’s decision to now enter the commercial energy storage segment. Ola Electric said it plans to enter the containerised energy-storage systems segment for commercial, industrial, and utility-scale use, ranging from 100 kWh to 5 MWh systems.

Ola Electric envisions Ola Shakti to generate a revenue of INR 100 Cr by the last quarter of the ongoing fiscal year and INR 1,000- 2,000 Cr annual revenue in FY27. It is pertinent to note that the company has just unveiled the product and its deliveries are slated to begin only in January next year.

Shares of Ola Electric ended today’s trading session 4.95% lower at INR 47.58 on the BSE.

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