Ola Electric Reports 34% Gross Margin Amid Major Structural Changes

Ola Electric, a Bengaluru-based electric vehicle manufacturer, announced today that it achieved a consolidated gross margin of 34.3% in the third quarter of the financial year 2025, which ended on December 31, 2025. This marks a significant improvement, increasing by 15.7 percentage points year-on-year and 3.4 percentage points quarter-on-quarter.

The company reported consolidated revenue from operations of ₹470 crore, reflecting a decrease of 55% compared to the previous year, indicating that it delivered 32,680 vehicles during the same period. Ola Electric attributed its performance to a necessary structural reset which involved realigning its retail presence, cost structures, and operational methods to adapt to slower growth in electric vehicle adoption and enhance service execution.

"Q3 FY26 marks a structural reset for Ola Electric. We chose to fix the fundamentals by restoring service execution, resetting our cost structure, and deepening vertical integration. The result is a leaner operating model with materially lower break-even and industry-leading gross margins," stated a spokesperson for the company.

To adapt to changing market conditions, Ola Electric has streamlined its operations through enhanced store and service network optimisation and the adoption of artificial intelligence technologies for automation. The company anticipates that these strategies will allow its quarterly operating expenses to decrease to between ₹250 crore and ₹300 crore in the upcoming months, which will lower the monthly EBITDA breakeven point to approximately 15,000 units.

As the demand for electric vehicles recovers, the new operating model is projected to facilitate an increase in sales volumes by two to four times without significantly raising operating expenses, aiming for a path to sustainable profitability.

In addition to the financial restructuring, Ola Electric noted that it has doubled its cell production in the past quarter to 72,418 cells and has initiated the commercial deployment of its in-house 4680 Bharat Cells in customer vehicles. Furthermore, the company has launched Ola Shakti, its inaugural residential Battery Energy Storage System (BESS) product.

Ola Electric's Gigafactory is currently functioning with an installed capacity of approximately 2.5 gigawatt-hours (GWh) with plans to scale up to 6 GWh by March 2026. This facility is seen as a strategic asset to enhance vertical integration, improve unit economics, and meet the increasing demand for energy storage globally. The expansion is expected to support the company's participation in the growing market for energy storage solutions, which is expected to rise as electric vehicle adoption increases alongside solar energy generation and data centre power requirements.

Overall, Ola Electric aims to project a long-term revenue target ranging between ₹15,000 crore and ₹20,000 crore in the coming years, reflecting its commitment to achieving growth and stability in a challenging market.