Ola Electric Mobility Ltd said FY26 was a “year of reset” for the company, as the electric two-wheeler maker used the year to strengthen service, product quality, gross margins, operating costs, cash discipline, sales productivity and cell manufacturing.
The company, in its Q4FY26 investor presentation, said it is now looking at volume recovery in FY27, supported by service stabilisation, stronger sales execution, Roadster ramp-up, better store productivity and deeper cell integration across its vehicle portfolio. Ola expects Q1FY27 orders of 40,000-45,000 units, nearly double Q4FY26 levels.
“FY26 was a year of reset for Ola Electric,” the company said in its shareholder letter. “Q4 was a low volume quarter, but it also showed the reset working: gross margin reached 38.5%, opex reduced materially through the year, cash burn reduced significantly, service stabilised, and sales recovery began, while cell moved from the validation phase to scale.”
The outlook comes after a difficult year in which Ola’s volumes and revenue declined sharply. Consolidated revenue from operations fell to ₹2,253 crore in FY26 from ₹4,514 crore in FY25, while deliveries declined to 1,73,794 units from 3,07,846 units. However, the company’s consolidated net loss narrowed to ₹1,833 crore from ₹2,253 crore.
First Operating Cash-Flow Positive Quarter
Ola Electric said Q4FY26 was its first operating cash-flow positive quarter. Consolidated cash flow from operations stood at ₹91 crore in Q4FY26, supported by PLI inflows, stronger gross margins, lower operating expenses and tighter working-capital discipline. Consolidated free cash flow improved to negative ₹131 crore in Q4FY26.
The automotive business performed better on cash flow. It delivered ₹213 crore of cash flow from operations and ₹173 crore of free cash flow in Q4FY26. The cell business remained in investment mode as Ola ramps up its Gigafactory and prepares the next phase of cell and storage products.
For the full year, consolidated cash flow from operations improved to negative ₹775 crore from negative ₹2,391 crore in FY25. Consolidated free cash flow improved to negative ₹1,492 crore from negative ₹3,367 crore.
The company’s gross margin also improved sharply. Consolidated gross margin rose to 30.6% in FY26 from 17.9% in FY25. In Q4FY26, consolidated gross margin reached 38.5%, up from 34.3% in Q3FY26 and 13.7% in Q4FY25.
Ola attributed the improvement to vertical integration, Gen 3 maturity, pricing architecture and downstream control. However, it cautioned that gross margins may moderate in Q1 and Q2FY27 due to commodity inflation and pricing actions to accelerate growth.
Opex Reset Helps Cash Burn
Ola Electric said FY26 was also a year of cost reset. Consolidated operating expenses, including lease rentals, declined to ₹428 crore in Q4FY26 from ₹844 crore in Q4FY25. The reduction came from network rationalisation, tighter sales and service costs, lower fixed overheads and stronger operating governance.
The company expects operating expenses to reduce further towards ₹350 crore per quarter over the next few quarters as the full benefit of FY26 actions flows through. At quarterly opex of around ₹300-350 crore, Ola said adjusted operating EBITDA breakeven is achievable at 20,000-25,000 units per month, subject to pricing, mix and commodity conditions.
Ola’s Q4FY26 revenue from operations stood at ₹265 crore, down from ₹611 crore in Q4FY25. Its Q4 consolidated net loss narrowed to ₹500 crore from ₹870 crore a year earlier.
Service Recovery Supports Sales Rebound
A key part of Ola’s FY27 recovery plan rests on service stabilisation. The company said service was the largest constraint on demand and brand trust through FY26, but has now materially stabilised.
Average service turnaround time reduced by 88%, from around nine days in October 2025 to nearly one day in March 2026. Service backlog reduced from 14 days to six days, same-day closures improved to about 87%, and parts pendency reduced by 69% from October to April.
The improvement also showed up in warranty costs. Ola said warranty cost in FY26 stood at ₹59 crore, compared with ₹555 crore in FY25. It added that warranty cost for Gen 3 products is 70% lower than Gen 2, reflecting better product quality, diagnostics and repair capability.
As service improved, sales also started recovering. Ola said April registrations rose to 12,166 units. The company said it is working to rebuild national market share to 15-20% over the next six months.
Own-Cell Transition by September
Ola Electric is also betting on deeper vertical integration to improve range, cost and supply-chain control.
The company said around 15% of orders are already coming from products using its own cells. It plans to transition its full vehicle portfolio to its own cells by September 2026.
In scooters, Ola said its own-cell products increase battery capacity from 4 kWh to 5.2 kWh, delivering more than 30% higher range. In motorcycles, the shift from 4.5 kWh to 9.1 kWh nearly doubles range, with Roadster X+ delivering 500 km-plus certified range.
The company said the Roadster motorcycle range gives it access to India’s largest two-wheeler category, where electric penetration remains low. Ola said motorcycles contributed 15% of April gross orders, while it claimed 50% market share in the electric motorcycle segment.
Gigafactory Moves to Scale-up
Ola said its cell business is moving from validation to scale. The company currently has 2.5 GWh operational capacity, while installation to 6 GWh is largely complete. Commercialisation of the 6 GWh scale-up is expected to be completed by the end of the current quarter.
The company said the existing Gigafactory complex gives it a path from 6 GWh to 20 GWh through incremental brownfield expansion. It plans to expand towards 20 GWh through capital raised at the cell entity level.
Ola is building its cell business around three demand engines: captive auto demand, Shakti small energy storage systems, and Mahashakti large-format storage. It expects captive cell consumption to scale to 1.5–2 GWh by FY27 exit. Shakti has generated 50,000-plus customer leads, while Mahashakti, aimed at commercial, industrial and utility-scale storage, is expected to be launched by CY2027.