Ola Electric Logs ₹265 Crore Revenue From Operations in Q4

Ola Electric on Wednesday reported consolidated revenue from operations of Rs 265 crore in the fourth quarter of FY26.

The company posted consolidated revenue from operations of Rs 2,253 crore for FY26, Ola Electric said in a statement.

Consolidated gross margin stood at 38.5 per cent in Q4 FY26 and 30.6 per cent for FY26, it added.

The electric two-wheeler maker said it delivered 20,256 units in Q4 FY26 and 173,794 units for FY26.

Q4 FY26 was a low-volume quarter, but it also showed the reset working. Consolidated gross margin reached 38.5 per cent, operating expenses reduced materially through the year, cash burn reduced significantly, service stabilised, and sales recovery began, while the cell business moved from validation to scale.

Ola Electric said it delivered its first operating cash flow positive quarter in Q4 FY26, with consolidated CFO (cash flow from operating activities) of Rs 91 crore, supported by PLI inflows, stronger gross margins, lower opex, and tighter working capital discipline.

The auto business delivered Rs 213 crore CFO and Rs 173 crore FCF (free cash flow) in Q4 FY26.

The cell business remained in planned investment mode as the company ramps up the Gigafactory and prepares the next phase of cell and storage products, it added.

"FY26 was a reset year for Ola Electric. We strengthened the fundamentals of the business across service, product quality, gross margins, operating costs, cash discipline, sales productivity, and cell manufacturing," an Ola Electric spokesperson said.

Q4 showed the reset working -- gross margin reached 38.5 per cent, operating cash flow turned positive for the first time, service materially stabilised, and sales recovery began, the spokesperson added.

"We enter FY27 with a stronger operating foundation, a sharper cost structure, and our cell platform moving from validation to scale across mobility and energy storage," the spokesperson said.

The company said product economics continued to strengthen in Q4 FY26.

The improvement reflects vertical integration, Gen 3 platform maturity, pricing architecture, and downstream control, the company said, adding it expects Q1 and Q2 FY27 margins to moderate from Q4 levels due to commodity inflation and pricing investments to accelerate growth, while maintaining strong unit economics.

FY26 was also a year of cost reset. Consolidated operating expenses, including lease rentals, reduced from Rs 844 crore in Q4 FY25 to Rs 428 crore in Q4 FY26.

The company expects opex to reduce further towards Rs 350 crore per quarter over the next couple of quarters as the full benefit of FY26 actions flows through, it added.

Ola Electric said the most important operating development of the fourth quarter was service. It was the largest constraint on demand and brand trust through FY26, and has now materially stabilised.

Average service TAT (turn around time) reduced by 88 per cent, from around nine days in October 2025 to nearly one day in March 2026. Service backlog reduced from 14 days to 6 days. Same-day closures improved to nearly 87 per cent, and parts pendency reduced by 69 per cent from October to April, the company said.

"With service stabilising, sales responded strongly. April registrations rose to 12,166 units, up 20 per cent month-on-month, even as the broader E2W industry declined by more than 22 per cent," it said.

The recovery is broad-based across states, with the North and East leading sales growth, driven by UP, Bihar, and West Bengal.

The company said AI is becoming a core operating layer inside Ola Electric. Its in-house AI stack is operating at production scale with around 2 lakh connected calls per day across sales, service, and operations.

Ola Electric further said its cell business is moving from technology validation to manufacturing scale. The company has commercialised the 4680 Bharat Cell, started integrating it into vehicles.

The Gigafactory currently has 2.5 GWh operational capacity, with installation to 6 GWh largely complete and commercialisation is expected to be completed by the end of this quarter.

The company is already operating at commercially viable yields, which are expected to improve through FY27, it added.

On FY27 priorities, Ola Electric said it is focused on scaling with discipline and its priorities are to recover volumes, sustain service consistency, hold margin leadership, reduce opex, ramp the Gigafactory, transition the auto portfolio deeper into its own cells, and scale storage systems 'Shakti' and 'Mahashakti'.

Based on current trends, Ola Electric said it expects Q1 FY27 deliveries to double Q-o-Q to nearly 45,000 units. As volumes recover, the company expects the auto business to move towards adjusted operating EBITDA and free cash flow positivity through FY27.