Electric mobility company Ola Electric EBITDA profitability is achieved in its automotive business for the first time in the quarter ended September 2025 (Q2 2026), thanks to lower operating costs.
The auto segment, which accounts for 99% of its total revenue, reported an EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 2 crore in the July-September period, compared with an EBITDA loss of Rs 162 crore a year ago. Margin improved to 0.3% from -12.4%.
“Our Auto segment posted its first positive EBITDA margin of 0.3%. We achieved this by reducing Auto operating expenses from Rs 308 crore to Rs 258 crore in the quarter,” the company said in a letter to shareholders.
While Ola Electric’s EBITDA turned positive, Ola Electric’s vehicle shipments fell sharply by 47% to 52,666 units in Q2 2026 from 98,619 units in the same quarter last year. Sequentially, total vehicle shipments fell 23% from 68,192 units in the previous June quarter.
Of the total volume of deliveries, 75% fell on the mass segment, and the remaining 25% – on the premium segment. The average selling price per unit was Rs 1.31 lakh in Q2 2026 as against Rs 1.23 lakh in Q2 2026. As a result, gross margin increased by 1,220 basis points compared to the same period last year and by 510 basis points compared to the previous quarter to 30.7%.
Focus on profitability amid fierce competition
Ola Electric reported a 16% decrease. in its consolidated net loss to Rs 418 crore in Q2 2026 from Rs 495 crore in the year-ago quarter. Losses fell 2% quarter-over-quarter from Rs 428 crore in Q1 2026.
However, revenue from operations fell 43% YoY and 17% YoY to Rs 690 crore in Q2 2026 amid a slowdown in overall e-scooter demand and intense competition from Bajaj Auto, TVS Motor and Ather Energy.
“Many OEMs have chosen to gain short-term market share through aggressive discounting and increased incentive channels at the expense of profitability. We took the opposite approach, focusing on improving our cost structure, deepening product quality and reliability, and expanding margins. This gives us the opportunity to grow by expanding margins and gain profitable share as market growth returns,” said Ola Electric.
In line with the decline in revenue, the company also cut its operating expenses to Rs 416 crore in 2Q26, down 31% from Rs 604 crore in the year-ago period.
Ola to target commercial energy storage
Earlier this week, the company announced that it has started shipping the S1 Pro+ scooter with Cell 4680 Bharat indigenously manufactured battery. Ola Electric thus became the first Indian company to fully own its own battery and cell manufacturing process.
Revenue from the cell segment, under which Ola makes lithium-ion batteries for electric vehicles, was Rs 4 crore in Q2 2026, up from Rs 1 crore in the corresponding quarter last year. Despiteinside of the increase in revenues, the segment’s loss widened to Rs 69 crore in 2Q25, from Rs 49 crore in 2Q25.
“Over the next 6-9 months, all of our automotive products will be migrated to Ola’s domestic cells, creating a baseline demand of 2-3 GWh annually for the cellular business,” the company said.
Announcements
After foraying into the energy space last month with the launch of Ola Shakti, its residential battery energy storage system (BESS), the company now plans to enter the commercial energy storage market.
“The next step is containerized energy storage systems for commercial, industrial and utility use, ranging from 100 kWh to 5 MWh systems. By the first quarter of 2026, we will launch our containerized BESS product with our own cells, offering India’s first fully homegrown solution. With strong cost competitiveness, localization and technological control, we expect capture a significant share of this fast-growing market,” said Ola Electric.
Ola Electric’s woes deepen
Ola Electric cut its FY26 revenue forecast by nearly one-third to Rs 3,000-3,200 crore amid lower sales and stiffer competition. from Rs 4,200 crore earlier.
This comes amid heightened regulatory scrutiny from the Central Consumer Protection Authority (CCPA), which once again was looking for explanations from Ola Electric for alleged violations of consumer rights, lack of service and misleading advertisements. The regulator has sent an investigation report to the company, but details have not yet been released. The hearing of the case is scheduled for November 10.
The hearing is part of the regulator’s investigation into consumer complaints against the company. In October 2024, the CCPA had issued a show-cause notice to Ola following numerous complaints that the company was selling used cars or cars with manufacturing defects.
Customers also claimed that bookings were canceled and users received partial or no refunds, as well as battery and component issues. At the time, Ola said that of the 10,644 customer complaints received since September 2023, 99.1% were resolved to “full customer satisfaction”. Later, in November 2024, the CCPA opened a formal investigation into the company.
In September 2025, Ola Electric’s auditor noted that its key subsidiary Ola Electric Technologies had a “significant weakness” in its internal control systems that prevented proper physical inspection of e-scooters at its stores in FY25. The company later tried to downplay the problems, saying the problem was an isolated incident.
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