Ola Electric has guided for a recovery in business momentum during Q1FY27, with the company expecting orders of 40,000–45,000 units and consolidated revenue in the range of ₹500–550 crore.
The guidance was shared as part of the company’s shareholder communication following its Q4FY26 results, where management said the business has moved past its “validation phase” and entered a period focused on scaling operations with improved cost discipline and service quality.
The company said FY26 was a “year of reset” for Ola Electric, during which it focused on strengthening fundamentals across service, product quality, gross margins, operating costs, and cell manufacturing.
For Q4FY26, Ola Electric reported consolidated revenue of ₹265 crore with deliveries of 20,256 units. Consolidated gross margin stood at 38.5%.
The company highlighted that Q4 marked its first operating cash-flow positive quarter. Consolidated CFO stood at ₹91 crore, supported by PLI inflows, stronger gross margins, lower operating expenses, and tighter working-capital discipline.
Ola Electric also said it has materially reduced operating expenses through FY26, while service quality metrics improved significantly. According to management, service operations have now “materially stabilised,” with average turnaround time reducing, parts availability improving, technician productivity increasing, and repair capabilities strengthening.
The company noted that Gen 3 scooters are helping reduce service demand at the product level. It added that sales recovery has begun, with April registrations rising over 20% month-on-month despite the broader electric two-wheeler industry declining more than 22%.
Management further said the company’s auto business contribution margin has improved sharply and currently stands at 5%, compared to negative 55% in FY25.
Looking ahead, Ola Electric said FY27 will focus on scaling commercial manufacturing at its Gigafactory towards 6 GWh capacity, integrating battery cells deeper into its vehicle portfolio, and expanding energy storage initiatives under the Shakti and Mahashakti platforms.
The company also reiterated its focus on motorcycles and broader electric mobility opportunities beyond scooters, stating that the Roadster platform gives it access to India’s large motorcycle market.
In its Q4FY26 results announced earlier, Ola Electric reported a 57% year-on-year decline in revenue, while losses narrowed to around ₹500 crore as the company continued efforts to improve operational efficiency and reduce cash burn.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.