Ola Electric Achieves First Auto EBITDA Profitability in Q2 FY26, Boosts Margins and Expands Gigafactory
Ola Electric achieved first Auto EBITDA profitability in Q2 FY26, with strong margin expansion and reduced expenses. Key launches like HyperService and Ola Shakti, coupled with Gigafactory scaling, position the company for diversified growth.
Achieving EBITDA profitability in the auto segment is a major financial milestone, signaling improved operational efficiency and a sustainable business model. The expansion into energy storage and scaling of cell manufacturing capacity open significant new revenue streams and strengthen vertical integration, indicating substantial long-term growth and market position impact.
The company achieved its first Auto EBITDA profitability, significantly improved gross margins, reduced operating expenses, and turned its auto business cash-generative. Strategic launches like HyperService and Ola Shakti, coupled with Gigafactory scaling and future expansion plans, indicate strong growth potential and operational efficiency.
Ola Electric Mobility Limited announced its Second Quarter results for the period ended September 30, 2025, highlighting significant operational and financial milestones. * Financial Highlights (Q2 FY26 - Auto Segment): * Achieved Auto EBITDA profitability for the first time, with an EBITDA margin of 0.3%. * Gross margin expanded by 510 basis points quarter-on-quarter (QoQ) to 30.7%. * Operating expenses reduced from ₹308 crore in Q1 FY26 to ₹258 crore in Q2 FY26. * Auto business turned cash-generative, with an underlying cash flow from operations (CFO) of ₹15 crore, adjusted for a one-time festive inventory build-up of ₹55 crore (reported CFO was -₹40 crore). * Operational Highlights: * Launched HyperService, opening genuine-parts access to customers and third-party garages to improve service reach, customer experience, and unlock a high-margin parts business (50%+ gross margin potential). * Ola Gigafactory commissioned 2.5 GWh capacity and is scaling to 5.9 GWh by March 2026, marking India’s first giga-scale cell plant in steady production ramp. * First 4680 vehicles with in-house cells have started customer deliveries. * Expanded into the Energy sector with Ola Shakti, India’s first residential Battery Energy Storage System (BESS) using in-house 4680 cells. * Achieved India's first government-certified ferrite motor in October 2025, eliminating dependency on rare-earth imports. * Management Commentary and Outlook: * The Auto business turning EBITDA positive is a defining milestone, reflecting strength in vertical integration and focus on fundamentals. * For H2 FY26, the company targets approximately 100,000 unit deliveries for the Auto segment. * FY26 consolidated revenue is expected to be around ₹3,000 crore - ₹3,200 crore. * Auto gross margins are targeted to reach around 40% and segment EBITDA around 5% by Q4 FY26. * The Cell business will start contributing to revenue from Q4 FY26 onward, with gross margins stabilizing at 30% by early FY27. * The Auto business is expected to be Free Cash Flow (FCF) positive by the end of FY26, with Q3 and Q4 capex estimated at ₹100 crore - ₹150 crore. * The company plans to expand total cell-manufacturing capacity to 20 GWh by the second half of FY27, leveraging a mix of equity, PLI inflows, and project finance.
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