Ola Electric Q2 FY26 Results: Loss Narrows, Margins Turn Positive

Key Highlights: Revenue: ₹690 crore, down 43% YoY, reflecting weaker EV demand and competitive pressures. Net Loss: ₹418 crore vs ₹495 crore last year — losses narrowed on cost control. Auto Business EBITDA: Turned positive at 0.3%, a major milestone after several loss-making quarters. Gross Margin: Improved to 30.7%, driven by lower costs and operational efficiency. Operating Expenses: Fell to ₹416 crore, showing focus on profitability over rapid expansion. FY26 Guidance: Revenue target revised to ₹3,000–3,200 crore (from ₹4,200–4,700 crore); gross margin goal raised to 40% by Q4. Insights: Despite a sharp drop in revenue, Ola’s improved margins and operational efficiency mark a shift toward sustainable profitability. The company’s auto division turning EBITDA positive highlights progress in fixing unit economics. Management remains focused on cost optimization, scaling battery manufacturing, and achieving free cash flow positivity by FY26-end. What to Watch: EV demand recovery amid rising competition. Ramp-up of in-house battery cell production. Volume and pricing strategy in H2 FY26. Execution of margin targets and cost discipline. Investor Takeaway: Ola Electric is at a turning point — prioritizing profitability over scale. While short-term revenue weakness persists, improving margins and focus on operational efficiency could set the stage for long-term strength in India’s EV market.