The automaker has provided its volume growth outlook in the range of -9.5% to 4.4%. The revenue growth is projected to be in the range of -9.5% to 1.2%.
14 Jul 2025 | 1584 Views | By Kiran Murali
India’s major electric two-wheeler maker Ola Electric is likely to post almost flat volume and revenue during the financial year 2026, compared to the previous financial year, as the company has given its volume growth outlook in the range of negative 9.5% to positive 4.4%. The revenue is projected in ...
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India’s major electric two-wheeler maker Ola Electric is likely to post almost flat volume and revenue during the financial year 2026, compared to the previous financial year, as the company has given its volume growth outlook in the range of negative 9.5% to positive 4.4%. The revenue is projected in the range of negative 9.5% and positive 1.2%.
“We expect our FY26 volumes to be around 3,25,000 - 3,75,000 vehicles and revenue to be around Rs 4,200 crore – Rs 4,700 crore,” Ola Electric said in a letter to shareholders on Monday. In FY25, the company sold 3,59,221 two-wheelers and clocked Rs 4,645 crore in consolidated revenue.
This bleak outlook comes as the automaker faces increasing competition from legacy ICE players in the burgeoning electric two-wheeler market. Recent monthly electric two-wheeler volumes reflect the growing consumer confidence in electric vehicles. What stands out is the apparent shift in market dynamics, with legacy ICE players like Bajaj Auto and TVS Motor not just participating in the EV space but actively leading it.
Despite overall market expansion, Ola Electric's market share contracted to 29.9% in FY25 from 34.8% in FY24. The competitive landscape intensified further in Q1 FY26, as Ola Electric's market position dropped to third, with its share more than halving compared to the previous year, while TVS Motor, Bajaj Auto, and Ather significantly expanded their presence.
Recently, the automaker started the deliveries of its first electric motorcycle, Roadster, priced in the range of Rs 99,999-1.29 lakh. The company expects Roadster and new product updates to bring in additional volumes in the coming months.
In May, Bajaj Auto said the electric scooter industry is expected to sustain strong double-digit growth in the range of 20-26% on year in FY26. In the first quarter, electric two-wheeler volumes are estimated to have grown 34% on year to 2.99 lakh units, while Ola Electric Q1 update shows that its volume almost halved to 68,192 units.
“We see strong momentum of our new products - Gen 3 scooters and the Roadster bike leading into the festive season. Our supply chain, engineering and manufacturing teams continue to improve our product quality and BOM cost and the benefits should continue to come into the P&L through the year,” the company said.
In FY25, Ola Electric’s automotive gross margin stood at 20.5% while EBITDA margin was at -23.8%. The business turned EBITDA positive in the month of June as forecasted earlier.
Ola Electric noted that the automotive division's first quarter gross margin was at 25.6%, without the benefits of the Production Linked Incentive (PLI) scheme. The company expects to receive the PLI in the second quarter, which is projected to result in a gross margin of 35-30% for the FY26.
Furthermore, with operating costs expected to remain relatively stable, the company is looking at an automotive EBITDA margin to exceed 5%.