Staff Writer
Bengaluru: Ola Electric on Wednesday reported a sharp improvement in profitability and cash flows for the fourth quarter of FY26, with consolidated gross margin rising to 38.5 per cent and the company turning operating cash flow positive for the first time.
The Bengaluru-based electric two-wheeler maker posted consolidated revenue from operations of Rs 265 crore in the January-March quarter of FY26, while full-year revenue stood at Rs 2,253 crore.
The company delivered 20,256 vehicles during Q4 FY26 and 1,73,794 units in the full financial year. Consolidated gross margin improved significantly from 13.7 per cent in the corresponding quarter last year and 34.3 per cent in the preceding quarter.
Ola Electric said consolidated operating cash flow for Q4 FY26 stood at Rs 91 crore, supported by higher margins, lower operating expenses, PLI inflows and tighter working capital management. Consolidated free cash flow improved to negative Rs 131 crore.
The company’s auto business generated cash flow from operations of Rs 213 crore and free cash flow of Rs 173 crore during the quarter.
“FY26 was a reset year for Ola Electric. We strengthened the fundamentals of the business across service, product quality, gross margins, operating costs, cash discipline, sales productivity, and cell manufacturing,” an Ola Electric spokesperson said.
The company said operating expenses, including lease rentals, reduced sharply to Rs 428 crore in Q4 FY26 from Rs 844 crore in the year-ago quarter. It expects quarterly operating expenditure to decline further towards Rs 350 crore over the next few quarters.
Ola Electric also reported improvement in after-sales operations, with average service turnaround time declining by 88 per cent from around nine days in October 2025 to nearly one day in March 2026. Parts pendency reduced 69 per cent during the same period.
The company said April registrations rose 20 per cent month-on-month to 12,166 units despite the broader electric two-wheeler industry witnessing a decline of over 22 per cent.
Ola Electric added that its motorcycle business is emerging as a second growth driver, with the company claiming around 50 per cent market share in the electric motorcycle segment. Bikes contributed 15 per cent of April gross orders.
On the battery manufacturing front, Ola Electric said its Gigafactory has 2.5 GWh operational capacity, while installation for 6 GWh capacity is largely complete. Commercialisation of the expanded capacity is expected by the end of the current quarter.
The company said it has commercialised its 4680 Bharat Cell and started integrating the cells into vehicles, while also progressing with its Shakti and Mahashakti energy storage platforms.
Looking ahead, Ola Electric said it expects Q1 FY27 deliveries to nearly double sequentially to around 45,000 units as sales recovery gathers pace.
