OLAELEC - Ola Electric

📊 NSE: OLAELEC 🏢 Automobiles - Motorcycles / Mopeds 📅 Last Updated: 12/14/2025 10:40

💰 Financial Performance

Revenue Growth by Segment

Automotive segment revenue grew 11% YoY to INR 5,010 Cr in FY25 from INR 4,514 Cr in FY24. Consolidated revenue for Q2 FY26 was INR 690 Cr, a 16.6% decline from Q1 FY26 (INR 828 Cr) as the company prioritized profitability over volume.

Geographic Revenue Split

Not disclosed in available documents, though the company expanded touchpoints significantly into India's hinterlands and rural areas in FY25.

Profitability Margins

Auto gross margins expanded from 12.6% in FY24 to 17.9% in FY25, reaching 30.7% in Q2 FY26 (up 510 bps QoQ). Consolidated gross margin for Q2 FY26 was 30.9%.

EBITDA Margin

Auto segment achieved its first positive EBITDA margin of 0.3% in Q2 FY26, compared to -5.3% in Q1 FY26. Consolidated EBITDA margin for Q2 FY26 was -18.1% (INR -137 Cr).

Capital Expenditure

Auto segment capex for Q3 and Q4 FY26 is estimated at INR 100 Cr - INR 150 Cr. SBI project finance covers the committed outlay for the 5.9 GWh Gigafactory installation.

Credit Rating & Borrowing

The company utilizes project finance with SBI for its Gigafactory; specific interest rates and credit ratings are not disclosed.

⚙️ Operational Drivers

Raw Materials

Lithium-ion cells (4680 format), steel, and aluminum are primary materials. Cell costs were reduced through vertical integration and the shift from Gen 2 to Gen 3 platforms.

Import Sources

Not disclosed in available documents, though the company is transitioning to in-house cell production at its Gigafactory.

Key Suppliers

SBI (Project Finance). Specific raw material suppliers are not disclosed.

Capacity Expansion

Current automotive capacity is 1 million units per year. Cell capacity is currently 5.9 GWh, with a planned expansion to 20 GWh starting in H1 FY27.

Raw Material Costs

Bill of materials (BOM) costs were notably reduced in FY25 through Gen 2 platform optimizations and lower raw material costs for cells.

Manufacturing Efficiency

The company achieved EBITDA break-even at a delivery scale of 20,000 units per month, down from a previous requirement of 25,000 units.

Logistics & Distribution

Distribution costs were reduced by bringing registration and warehousing in-house; Auto opex fell from INR 308 Cr in Q1 FY26 to INR 258 Cr in Q2 FY26.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be driven by the ramp-up of the Gen 3 platform, the launch of the Roadster motorcycle series (15% of Q2 volume), and the entry into the BESS market with the 'Ola Shakti' product targeting INR 1,000 Cr revenue in FY27.

Products & Services

Electric scooters (S1 series), electric motorcycles (Roadster), Battery Energy Storage Systems (Ola Shakti), and software subscriptions.

Brand Portfolio

Ola Electric, Ola Shakti.

New Products/Services

Ola Shakti (BESS) units and Roadster motorcycles; Shakti is expected to contribute at least INR 1,000 Cr to FY27 revenue.

Market Expansion

Expansion of the distribution network into rural India and hinterlands, with touchpoints multiplying several times in FY25.

Market Share & Ranking

The company targets a 25% market share in the electric two-wheeler industry.

🌍 External Factors

Industry Trends

The industry is shifting toward vertical integration and in-house cell manufacturing to reduce costs. Competition has increased from 2 to 6 major players in the last 1.5 years.

Competitive Landscape

Hyper-competitive market with 6 major players; competitors are using aggressive discounting and channel incentives to gain share.

Competitive Moat

Moat is built on vertical integration, in-house cell production, and a shared technology platform across scooters, bikes, and BESS products, providing a sustainable cost advantage.

Macro Economic Sensitivity

The electric vehicle market has been flat, with demand sensitive to government subsidies and competitive pricing dynamics.

Consumer Behavior

Customers are increasingly seeking higher range and lower cost of ownership, driving penetration into mass segments.

⚖️ Regulatory & Governance

Industry Regulations

The PLI scheme provides a 7-8 percentage point boost to gross margins. The reduction in FAME2 subsidies impacted FY25 margins.

Taxation Policy Impact

Not disclosed; the company is currently reporting losses before tax (INR -418 Cr in Q2 FY26).

Legal Contingencies

FY24 results were impacted by one-time costs including warranty provisions and IPO-related expenses totaling a significant portion of the INR 1,260 Cr Auto EBITDA loss.