Ola Electric has switched focus to attain profitability after a poor show in the June quarter. After the results, chief executive Bhavish Aggarwal said that the company is moving away from aggressive expansion, and towards profitability and operational stability.
The electric two-wheeler maker saw its revenue halve to Rs 828 crore, while its net losses widened 23% to Rs 428 crore during the three months ended June 30, according to financial results filed on Monday.
"We’ve made a pivot to our strategy over the last two quarters from aggressive penetration to balanced profitable growth. Our goal in this phase is to consolidate and institutionalise our operations, improve our margins, and get ready for the next phase of growth driven by our expanding product portfolio, improving distribution and engaging the next set of customers entering the industry," Ola Electric said in a post-results note to shareholders.
Outlook
The EV manufacturer expects to sell 3.25–3.75 lakh vehicles during the current fiscal, clocking revenues in the range of Rs 4,200–4,700 crore. This is almost flat compared to Rs 4,514 crore recorded in the fiscal year ended March 2025, which was 10% lower than Rs 5,010 crore in FY24.
The company expects its auto business margins for FY26 to improve to 35–40% with the production-linked incentives for its Gen 3 line-up by the September quarter. It projected that the vertical will turn profitable by the September quarter and generate operating cash flow later in FY26.
For the remainder of FY26, Ola Electric's auto capex would largely be around Rs 300 crore, including capitalised research and development, with no major new product or manufacturing capex on the cards. Considering this, the company expects free cash flow for the auto business to be Rs 400–500 crore for the remaining three quarters.
The electric two-wheeler maker saw its revenue halve to Rs 828 crore, while its net losses widened 23% to Rs 428 crore during the three months ended June 30, according to financial results filed on Monday.
"We’ve made a pivot to our strategy over the last two quarters from aggressive penetration to balanced profitable growth. Our goal in this phase is to consolidate and institutionalise our operations, improve our margins, and get ready for the next phase of growth driven by our expanding product portfolio, improving distribution and engaging the next set of customers entering the industry," Ola Electric said in a post-results note to shareholders.
Outlook
The EV manufacturer expects to sell 3.25–3.75 lakh vehicles during the current fiscal, clocking revenues in the range of Rs 4,200–4,700 crore. This is almost flat compared to Rs 4,514 crore recorded in the fiscal year ended March 2025, which was 10% lower than Rs 5,010 crore in FY24.
The company expects its auto business margins for FY26 to improve to 35–40% with the production-linked incentives for its Gen 3 line-up by the September quarter. It projected that the vertical will turn profitable by the September quarter and generate operating cash flow later in FY26.
For the remainder of FY26, Ola Electric's auto capex would largely be around Rs 300 crore, including capitalised research and development, with no major new product or manufacturing capex on the cards. Considering this, the company expects free cash flow for the auto business to be Rs 400–500 crore for the remaining three quarters.
