News Earnings Ola Electric Q3 FY26 Results: Revenue ₹470 Crores, Gross Margin Hits Record 34.3%Ola Electric Q3 FY26 Results: Revenue ₹470 Crores, Gross Margin Hits Record 34.3%
Ola Electric Mobility Limited reported Q3 FY26 consolidated revenue of ₹470 crores with record gross margin of 34.3%, representing 16 percentage point year-on-year improvement. The company delivered 32,680 vehicles and produced ~72,500 cells while executing comprehensive cost restructuring that reduced quarterly OPEX from ₹840 crores to ₹484 crores, targeting ₹250-300 crores steady state. Management acknowledged service execution challenges but highlighted 90% product satisfaction and 2-3% warranty provisions, with service improvements showing 50% reduction in backlogs and 80% same-day ticket completion.
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Ola Electric Mobility Limited held its Q3 FY26 earnings conference call on February 13, 2026, presenting results for the quarter ended December 31, 2025. The company reported significant improvements in operational metrics while acknowledging ongoing service challenges.
Financial Performance Highlights
The company delivered strong financial metrics for Q3 FY26, demonstrating the benefits of its vertically integrated business model.
| Metric: | Q3 FY26 Performance |
|---|---|
| Consolidated Revenue: | ₹470 crores |
| Gross Margin: | 34.3% (highest ever) |
| Vehicle Deliveries: | 32,680 units |
| Cell Production: | ~72,500 cells |
| YoY Gross Margin Improvement: | 16 percentage points |
| QoQ Gross Margin Improvement: | 3.4 percentage points |
Chairman and Managing Director Bhavish Aggarwal emphasized that the company has invested approximately ₹5,300 crores across manufacturing, battery innovation and R&D over recent years. This investment phase has created full vertical integration across motors, batteries, cells, electronics, and software, along with scalable manufacturing infrastructure supporting 1 million vehicles and 6 gigawatt hour of cell capacity.
Operational Cost Restructuring
The company executed a comprehensive operating model reset during Q3 FY26, achieving substantial cost reductions.
| Cost Structure: | Previous | Q3 FY26 | Target Steady State |
|---|---|---|---|
| Quarterly OPEX (including leases): | ₹840 crores | ₹484 crores | ₹250-300 crores |
| EBITDA Breakeven: | Higher threshold | 15,000 units/month | 15,000 units/month |
| Fixed Cost Component: | - | 85-90% | 85-90% |
CFO Deepak Rastogi highlighted that this restructuring creates a structurally lower breakeven business with significantly improved operating leverage. The high proportion of fixed costs means incremental volume growth will drive strong margin expansion.
Service Operations and Product Quality
Management acknowledged service execution gaps that have impacted brand trust among prospective customers while emphasizing strong underlying product quality.
Service Improvements:
- Service backlogs reduced by 50% from 14 days to 7-8 days
- 80% of service tickets now completed same day
- Hyper service initiative includes redesigned parts availability and expanded technician training
Product Quality Metrics:
- Over 90% product satisfaction in independent surveys
- Warranty provisions expected at 2-3% for current financial year
- Range-to-price index approximately 50% higher than competition
Aggarwal noted that the company's products deliver the best range in the industry, with existing customers acknowledging this advantage. The service challenges represent operational scaling issues rather than fundamental product quality problems.
Gigafactory Milestone and Technology Advancement
Q3 FY26 marked significant progress in the company's battery manufacturing capabilities.
| Gigafactory Progress: | Details |
|---|---|
| Cell Production: | Doubled to ~72,500 cells |
| Current Capacity: | 2.5 gigawatt hour installed |
| Target Capacity: | 6 gigawatt hour by March 2026 |
| Commercial Deployment: | First in-house 4680 Bharat cells |
| Product Launch: | Ola Shakti energy storage |
The company positions itself as the only Indian company to operationalize a scaled Gigafactory and one of the few globally outside China. The 4680 cell technology provides enhanced range benefits, with a roadmap progressing to 4600 and 46120 configurations for improved energy density and fast charging performance.
Strategic Outlook and Recovery Roadmap
Management outlined a three-phase recovery strategy focusing on service improvement, brand trust rebuilding, and leveraging product advantages. The company expects gross margins to stabilize in the 35-40% range during FY26-27, supported by vertical integration benefits.
With the heavy capital expenditure phase complete, Ola Electric's current infrastructure supports revenue potential of ₹15,000-20,000 crores. The company maintains its customer base of 11 lakh users, representing approximately 30% of all two-wheeler EVs sold in India to date.
The Gigafactory provides strategic optionality for both automotive applications and the broader energy storage market, which management believes will become larger than the automotive sector over time.
Historical Stock Returns for Ola Electric Mobility
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.36% | -8.32% | -21.06% | -50.37% | -55.69% | -72.35% |
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