Ola Electric’s consolidated net loss narrowed to ₹500 crore in the fourth quarter of FY26, from ₹870 crore in the corresponding quarter of FY25, aided by a steep reduction in operating expenses. The net loss widened sequentially from ₹487 crore in the December quarter. Revenue from operations plunged 57% year-on-year to ₹265 crore in Q4FY26 as vehicle deliveries fell more than half to 20,256 units, compared to 51,375 units in Q4FY25.
Cost Overhaul
The Bengaluru-based EV firm, however, reported its first operating cash flow-positive quarter. Consolidated cash flow from operations stood at ₹91 crore against a negative ₹131 crore in the same quarter last year, and improved sharply from a negative ₹523 crore in Q3FY26.
Ola Electric founder and CMD Bhavish Aggarwal attributed the decline in revenue to lower vehicle deliveries, but said the company had achieved a strong improvement in margins and cost control. “The auto business delivered ₹213 crores of cashflow from operations and ₹173 crore of free cash flow in Q4. This is an important milestone as Ola moves from a heavy build-out-based to a disciplined scale up,” Aggarwal said during the Q4FY26 earnings call.
Consolidated gross margin improved to 38.5% in Q4FY26, up from 34.3% in Q3FY26 and 13.7% in Q4FY25. Excluding PLI benefits, gross margin stood at 33.5% for the quarter. Consolidated operating expenses, including lease rentals, declined to ₹428 crore in Q4FY26 from ₹844 crore in Q4FY25, due to network rationalisation, tighter sales and service costs, and lower fixed overheads. The company expects operating expenses to reduce further towards ₹350 crore per quarter over the next few quarters.
During Q4FY26, Ola Electric received orders for 22,522 units and delivered 20,256 units, while registrations stood at 22,088 units. “We have a production backlog now. So, some of that will come through in this quarter in terms of registrations,” he said. The company expects orders of 40,000-45,000 units in Q1FY27, nearly double Q4 levels, and projects consolidated revenue of ₹500-550 crore. It needs monthly volumes of 20,000-25,000 units to achieve Ebitda break-even.
Up-Scaling the GigaFactory
On battery cell manufacturing, Aggarwal announced another change in expansion plans, saying Ola Electric now intends to scale up its Gigafactory capacity to 20 GWh from the previously announced 6 GWh. “We are actually going to expand that 6 GWh to 20 GWh by next year but only by raising capital separately at the cell entity,” he said, adding that the cell business is seeing inbound interest from private equity players.
Originally, Ola planned to scale battery cell capacity to 20 GWh by mid-2026, before revising the target down to 5 GWh until FY29. After entering the battery energy storage solutions (BESS) business last year, it announced a ramp up from 2.5 Gwh to 6 GWh by March 2026. Aggarwal said the 6 Gwh expansion was delayed due to supply chain issues caused due to West Asia war and would become operationalised by June.
The company plans to use up to 2 GWh of battery cells for captive consumption in its two-wheelers, while the remaining capacity will cater to its BESS business (Ola Shakti) and B2B grid supply to telecom towers, petrol stations, dark stores, other organised retail chains etc. Aggarwal said Ola Electric is also in talks with Indian and global automotive companies to supply battery cells.
For the full year, Ola Electric’s consolidated net loss narrowed to ₹1,833 crore from ₹2,253 crore in FY25, while revenue from operations declined 50% to ₹2,253 crore. Aggarwal declined to disclose details of potential fund-raising plans for the battery cell manufacturing subsidiary, but said investor interest remained strong.