Ola Electric Mobility (OLAELEC) Q2 25/26 earnings summary

Executive summary

• Achieved 30.7% gross margin in Q2 FY2026, with auto business turning cash generative and INR 15 crore cash flow from operations.

• Approved unaudited standalone and consolidated financial results for Q2 and H1 ended September 30, 2025, and appointed PwC as internal auditors for FY 2025-26.

• Board approved reallocation of IPO proceeds and additional fundraising plans up to INR 3,200 crores through debt and equity instruments.

• Commissioned 2.5 GWh Gigafactory, targeting 5.9 GWh by March; launched India's first residential BESS product, Ola Shakti, using in-house 4680 cells.

• BESS business expected to generate INR 1,000–1,200 crore revenue in FY2027, with strong demand and industry-leading distribution.

Financial highlights

• Q2 FY26 consolidated revenue was INR 828 crores, up from INR 690 crores in Q1; H1 FY26 revenue was INR 1,518 crores.

• Q2 gross margin reached 30.7%, with PLI contributing only 2 percentage points; further margin improvement expected as PLI benefits scale up.

• Auto business achieved positive cash flow from operations (INR 15 crore) and EBIT break-even at 20,000 units/month, down from 25,000.

• Consolidated net loss for Q2 FY26 was INR 428 crores, compared to INR 418 crores in Q1; H1 FY26 net loss was INR 846 crores.

• Overall OpEx reduced from INR 450 crore in Q1 to INR 416 crore in Q2, with further cost optimizations planned.

Outlook and guidance

• BESS unit projected to deliver INR 1,000–1,200 crore revenue in FY2027, scaling from INR 100 crore in Q4 FY2026.

• Full portfolio PLI expected to lift gross margin to 36–37% by Q4, with further upside from parts and software revenue.

• Management expects to continue as a going concern, supported by available cash, projected operating cash flows, credit lines, and planned fundraising.

• Focus on expansion of cell manufacturing, new product launches, and operational efficiencies to drive future growth.

• Industry growth expected to resume in FY2027, with company targeting 25% market share and leadership in both scooters and motorcycles.