Ola Electric Q3 FY26: Revenue ₹470 Cr, Gross Margin 34.3%, Eyes Profitability
Ola Electric reported Q3 FY26 consolidated revenue of ₹470 crore with a record gross margin of 34.3%. The company achieved 32,680 deliveries. Having completed its significant capex phase, Ola Electric aims for gross margins of 35-40% in FY26-27. Operating expenses have been reduced to ₹484 crore, with a target of ₹250-300 crore, lowering the breakeven point to 15,000 units monthly.
The announcement details significant financial improvements, strategic shifts towards cost optimization and profitability, and progress in key operational areas like manufacturing and service. These factors are crucial for investor confidence and the company's future growth trajectory.
The company reported strong revenue and gross margin improvements, highlighted the completion of its major capex cycle, and outlined a clear path to reduced operating expenses and profitability. While acknowledging past service challenges, management expressed confidence in their resolution and the product's fundamental strengths.
Ola Electric Mobility Limited held its Q3 FY26 earnings conference call on February 13, 2026, to discuss its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025. The company reported consolidated revenue of ₹470 crore, marking the highest ever consolidated gross margin at 34.3%, a significant 16 percentage points increase year-on-year and 3.4 percentage points quarter-on-quarter.
During the quarter, Ola Electric achieved 32,680 deliveries and produced approximately 72,500 cells. The company highlighted the strength of its vertically integrated model, Gen 3 platform economics, and disciplined execution. The heavy capital expenditure phase, involving investments of approximately ₹5,300 crore across manufacturing, battery innovation, and R&D over the past few years, is now behind them. The current infrastructure supports 1 million vehicles and 6 gigawatt-hour (GWh) of cell capacity, with the focus shifting to scaling within this capacity. The company anticipates gross margins stabilizing in the range of 35% to 40% during FY26-27, which is notably higher than the typical gross margins in the ICE industry.
Management acknowledged service execution challenges that impacted brand trust and sales in recent quarters. However, they emphasized that these are service scale issues, not product quality issues, with independent surveys indicating over 90% product satisfaction. Warranty provisions for the current financial year are expected to be in the range of 2-3%. Through its 'hyper service' initiative, the company has reduced service backlogs by nearly 50% and is now completing 80% of service tickets on the same day. As service metrics stabilize, they expect underlying strengths to reassert themselves.
Ola Electric has executed a comprehensive operating model reset, reducing consolidated quarterly operating expenses (including leases) from a peak of ₹840 crore to ₹484 crore in Q3 FY26. They anticipate a steady state of ₹250-300 crore over the next couple of quarters, which lowers the EBITDA breakeven point to approximately 15,000 units per month. The company also highlighted the Gigafactory milestone, doubling cell production to ~72,500 cells and achieving the first commercial deployment of its in-house 4680 Bharat cells. The Gigafactory's installed capacity is scaling to 6 GWh by March 2026, positioning Ola Electric as a key player in the energy storage sector.
The company is focused on rebuilding brand trust through improved service and expects sales recovery as these challenges are addressed. They project strong operating leverage as volumes increase, given that a large part of the OPEX is fixed cost.
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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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