Ola Electric achieves 30.7% auto gross margin, commissions Gigafactory, and launches new BESS product
Ola Electric's Q2 FY26 earnings call transcript details strong auto business profitability (30.7% gross margin). Gigafactory commissioned; new Ola Shakti BESS launched, targeting ₹1,000-₹1,200 crore revenue in FY27.
The launch of a new BESS product line targeting substantial revenue, coupled with improved profitability and cash generation in the core auto business, represents a high impact strategic shift and operational excellence that could significantly enhance the company's market position and financial outlook. The scaling of the Gigafactory and expected PLI benefits further solidify this impact.
The announcement indicates strong financial performance with high gross margins and positive cash flow in the auto business. The commissioning of the Gigafactory and the launch of the new Ola Shakti BESS product, coupled with ambitious revenue targets and expected healthy margins, are significant positive developments for the company's growth and diversification.
Ola Electric Mobility Limited has released the transcript of its earnings conference call with analysts and investors held on November 06, 2025, pertaining to the unaudited standalone and consolidated financial results for the second quarter and half year ended September 30, 2025. The call featured Mr. Bhavish Aggarwal (Founder, Chairman, and Managing Director), Mr. Harish Abichandani (Chief Financial Officer), and Mr. Abhishek Chauhan (Director, Corporate Communications & PR).
Key highlights from the call include: * The Auto business has shown strong progress towards profitability, achieving a gross margin of 30.7% in Q2 FY26. * The Auto business also turned cash-generative, reporting an underlying cash flow from operations of ₹15 crores. * The Gigafactory was commissioned with a 2.5 GWh capacity, with plans to scale up to 5.9 GWh by March 2026. * In October, Ola Electric expanded into the energy segment with the launch of Ola Shakti, India's first residential BESS (Battery Energy Storage System) product, built with its in-house 4680 cells. This initiative is expected to drive new revenue streams and increase Gigafactory utilization. * The Ola Shakti BESS product will go to market around mid-January 2026, distributed across 2,500-3,000 stores. It targets the current inverter market and complements rooftop solar growth. * The average selling price (ASP) for the BESS product is estimated at ₹1.25-₹1.50 lakhs, with a range of ₹50,000 to ₹2 lakhs. * Revenue guidance for the BESS unit is ₹100 crore in Q4 FY26 (approximately 7,000-8,000 products) and ₹1,000-₹1,200 crore for the full FY27, with healthy gross margins expected from the start. * The Auto two-wheeler business saw its ASP increase from ₹121,000 to ₹131,000 due to increased attachments of add-ons (like MoveOS+ software subscriptions and accessories) and a broader pricing range with Gen 3 products. * PLI contribution to the Q2 gross margin was only 2 points. All Gen 3 scooters now have PLI, and PLI for bikes is expected by January or February 2026. Full portfolio PLI is projected to add 7-8 points to the gross margin, with total gross margins potentially reaching 36%-37% by Q4 FY26 onwards. * The company plans to significantly scale its parts business, aiming for 5%-6% of revenue and an additional 2-3 points in gross margin. * Employee costs have decreased significantly due to cost consolidation and optimization, a trend expected to continue with further non-people-linked operational cost optimizations in Q3 and Q4. Ola Electric aims to be among the 1-2 leading players in the EV market with a target market share of around 25%.
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Ola Electric Mobility Limited filed this with the NSE as a statutory disclosure, categorised under concall transcript released. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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