Operational efficiency and cost control drive profitability as Ola targets 1 lakh vehicle deliveries and expanded energy storage revenues by FY27

Ola Electric's automobile business reported in the September 2025 quarter that it had returned to EBITDA profit at a positive margin of 0.3 per cent after contracting by 5.3 per cent in the previous quarter. This is the first instance of the company achieving profitability on an EBITDA basis, reflecting an improvement in operational efficiencies and cost management.

For the quarter, Ola Electric's auto gross margins increased by 510 basis points to 30.7 per cent, which is better than the gross margins of several traditional internal combustion engine (ICE) two-wheeler competitors, despite only a small contribution from the Production Linked Incentive (PLI) scheme.

The company's consolidated revenue from operations for Q2 was Rs 690 crore, driven by vehicle deliveries of 52,666 units. Ola Electric's financial results also reflected a reduction in operating costs, with the amount of auto operating expenses reducing from Rs 308 crore year-on-year to Rs 258 crore. Total consolidated operating expenses also decreased from Rs 451 crore to Rs 416 crore.

Ola Electric is looking to maintain momentum in the second half of the fiscal year with a target of approximately 1 lakh vehicle deliveries while emphasising margin discipline in a competitive market environment. The company expects to reduce auto operating expenses to approximately Rs 225 crore by Q1 FY27, while consolidated operating expenses are expected to be in the Rs 350-375 crore range through continued operational consolidation and technology-driven efficiencies.