Ola Electric Mobility Limited has reported a significant milestone in its Q2 FY26 financial results, marking its first quarter of profitability in the auto segment. The company also announced its expansion into the energy storage sector with the launch of Ola शक्ति, a residential Battery Energy Storage System (BESS).

Auto Segment Turns Profitable

Ola Electric's auto business achieved a positive EBITDA margin of 0.3% in Q2 FY26, compared to -5.3% in the previous quarter. This improvement was driven by a substantial expansion in gross margins, which increased by 510 basis points sequentially to 30.7%. The company attributes this growth to operational efficiencies and minimal reliance on Production Linked Incentive (PLI) contributions, which accounted for only 2% of the margin expansion.

Financial Highlights

Product Performance and Innovation

Ola Electric's Gen 3 platform continues to show strong unit economics and customer acceptance. The company's Roadster model has gained traction, with Q2 sales quadrupling compared to Q1 and now representing about 15% of overall sales. Peak daily sales for the Roadster reached 450 units during the festive period.

The company achieved a significant technological milestone with India's first government-certified ferrite motor in October 2025, reducing dependency on rare-earth imports while maintaining performance standards.

Expansion into Energy Storage

Ola Electric has launched Ola शक्ति, a residential BESS using its in-house Bharat 4680 cells. This product offers twice the lifespan and higher efficiency compared to traditional lead-acid systems, integrating with rooftop solar installations and providing 5-10 hours of home backup power.

The company projects ₹100.00 crore in revenue from Ola शक्ति in Q4 FY26, with expectations of ₹1,000.00-1,200.00 crore in annual revenue for FY27, at 40-50% gross margins.

Cell Manufacturing Progress

Ola's Gigafactory has commissioned 2.5 GWh of installed capacity, positioning it as India's first operational facility at gigawatt scale. The company plans to reach 5.9 GWh capacity by March 2026 and aims to expand to 20 GWh by the second half of FY27 to meet growing demand across its auto and energy businesses.

Future Outlook

For H2 FY26, Ola Electric targets approximately 100,000 auto deliveries, reflecting a focus on margin discipline in a competitive market. The company projects FY26 consolidated revenue of around ₹3,000.00-3,200.00 crore, with new energy storage volumes expected to diversify the revenue stream starting Q4.

Ola Electric anticipates exiting Q4 with auto gross margins around 40% and segment EBITDA of approximately 5%. The cell business is expected to contribute to revenue from Q4 onward, with gross margins stabilizing at 30% by early FY27.

As Ola Electric transitions into a more diversified energy technology company, it aims to establish sustainable profitability in its auto business while activating new growth vectors in the energy sector. The company's strategy focuses on broadening its revenue base, improving structural margins, and strengthening cash conversion to support long-term growth across both automotive and energy segments.

Ola Electric Mobility , India's leading electric vehicle (EV) manufacturer, reported mixed financial results, showing profitability in its auto business for Q2 FY26 while also disclosing an overall loss for a previous quarter. The company has also made key appointments and financial decisions.

Financial Performance

For Q2 FY26, Ola Electric reported:

• Positive EBITDA of 0.30% in the auto business, compared to -5.30% in Q1 FY26
• Auto gross margins expanded to 30.70%, up 510 basis points sequentially
• Consolidated revenue of ₹690.00 crores
• Total deliveries of 52,666 vehicles

For a previous quarter ended September 30, the company reported:

For the six-month period in the previous financial year, revenue was ₹2,428.00 crore with a net loss of ₹935.00 crore.

Operational Highlights and Future Outlook

• Launched Ola S1fea, India's first residential Battery Energy Storage System using in-house 4680 Bharat Cells
• Expects ₹100.00 crores revenue from S1fea in Q4 FY26 and ₹1,000.00-1,200.00 crores in FY27
• Commissioned 2.5 GWh cell manufacturing capacity, becoming India's first operational facility at gigawatt scale
• Roadster sales grew 4x from Q1, representing about 15% of overall sales
• Launched HyperService to improve customer experience and unlock parts revenue opportunities
• Targets approximately 100,000 auto deliveries for H2 FY26
• Expects FY26 consolidated revenue of ₹3,000.00-3,200.00 crores

Key Appointments and Decisions

• Ola Electric's Board approved the appointment of PricewaterhouseCoopers Services LLP as Internal Auditors for the financial year
• The Board previously approved raising funds up to ₹1,700.00 crore through debt securities and up to ₹1,500.00 crore through equity instruments

Market Performance and Financial Strategy

• The company maintains negative cash flow from operations of ₹343.00 crore for the six months in the previous period
• Management believes the company can continue as a going concern based on available cash balances, expected future operating cash flows, available credit limits, and ability to raise borrowings
• The trading window for company securities will reopen 48 hours after the declaration of financial results

As Ola Electric navigates through its financial challenges and growth opportunities, the company's efforts in fundraising, strategic appointments, and new product launches may position it for future growth. The recent profitability in its auto business marks a significant milestone. Investors and industry observers will be watching closely to see how these initiatives translate into improved overall financial performance and market position in the coming quarters.