Ola Electric Eyes Strong Turnaround: Auto Margins, Cell Capacity, and Revenue Targets Set for FY26-FY27

Ola Electric has projected a significant profitability milestone as it expects to close FY26 with auto gross margins around 40%, supported by segment EBITDA at approximately 5%. The company is strategically managing volume growth with an anticipated shortfall in Q1 guidance but plans to ramp up production capacity aggressively.

In a major capacity expansion move, Ola Electric aims to increase total cell manufacturing capacity to 20 GWh by the second half of FY27. This aligns with its broader vision to enhance vertical integration and strengthen supply chain resilience, while gearing for upcoming product launches like the container BESS product with proprietary cells slated for Q1 FY26.

Revenue for FY26 is targeted between ₹30-32 billion, backed by approximately 100,000 deliveries expected in the first half of the year. Ola also plans to reduce operating costs to ₹3.5-3.75 billion by Q1 FY27 and anticipates starting to claim production-linked incentive (PLI) scheme benefits from Q4 FY26.

Despite flat sales during the recent festive season, Ola Electric continues its push on innovation and scaling, highlighting operational discipline and confidence in achieving its mid-term targets.

Key Highlights:

Expecting FY26 auto gross margins close to 40%, with segment EBITDA around 5%.

Cell-manufacturing capacity planned to expand to 20 GWh by H2 FY27.

FY26 consolidated revenue guidance of ₹30-32 billion.

Anticipated lower volumes than Q1 guidance; targeting ~100,000 deliveries in H1 FY26.

Launch of container BESS product with own cells planned for Q1 FY26.

Operating expenses expected to reduce to ₹3.5-3.75 billion by Q1 FY27.

PLI scheme incentives to start from Q4 FY26, enhancing profitability.

Recent festive season sales flat year-on-year, signaling cautious market conditions.

Sources: Inc42, Economic Times Auto, Financial Express, EVStory