Ola Electric Q2 Results: Loss narrows to Rs 418 crore, Auto EBITDA turns positive

Ola Electric Q2 Results: Ola Electric Mobility reported a consolidated net loss of Rs 418 crore for the quarter ended September 30, 2025, narrowing from Rs 495 crore in the same period last year. Revenue from operations fell 43 per cent year-on-year to Rs 690 crore compared with Rs 1,214 crore in Q2FY25.

Auto EBITDA turns positive

The company announced that it achieved Auto EBITDA profitability for the first time, supported by a gross margin of 30.7 per cent — an improvement of 510 basis points sequentially. Operating expenses were reduced by nearly 52 per cent quarter-on-quarter, helping improve overall efficiency.

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Ola said its auto segment turned cash-positive during the quarter, with cash flow from operations at Rs 15 crore. However, total cash flow stood at a negative Rs 40 crore due to a one-time festive inventory build-up.

Capex and financial outlook

For the automotive division, Ola Electric expects capital expenditure of Rs 100–150 crore over the next two quarters. The company aims to achieve positive free cash flow in its automotive business by the end of FY26.

Investment in the battery segment will continue, with progress underway on the 5.9 GWh Gigafactory project funded primarily by the State Bank of India. Ola plans to expand capacity to 20 GWh in the first half of FY27 as part of its scaling strategy.

Business outlook

Ola anticipates a more balanced revenue mix in the coming quarters as its energy products segment grows. Gross margins are expected to rise further with higher Gen 3 volumes, in-house cell integration, and cost control measures.

For the second half of FY26, the company targets deliveries of around 100,000 units and consolidated revenue of Rs 3,000–3,200 crore, with a focus on profitability over volume growth. Ola projects gross margins of about 40 per cent for its auto segment by Q4FY26, with segment EBITDA around 5 per cent.

The cell division is expected to start contributing to revenue from Q4FY26 through internal and external sales of Ola Shakti units, with margins likely to stabilize near 30 per cent by early FY27.

Ola Electric share price today

Ola Electric shares opened at Rs 50.02 apiece on the BSE, hitting an intraday high of Rs 51 and a low of Rs 48.95. The stock declined over 1 per cent after the Q2 results announcement.