Ola Electric is banking on its competitive advantage in technology, cost structure, and distribution to drive the next phase of growth, as India’s EV market moves from breakneck expansion to consolidation.
“We have transitioned our strategy from aggressive penetration to a more balanced, profitable growth strategy,” CEO Bhavish Aggarwal said during the company’s Q1 earnings call on July 14.
“Given where the industry is, we believe now is the time for consolidation, and we have a strong competitive advantage in this phase.”
Ola’s auto business turned EBITDA positive in June, helped by stronger margins from its Gen3 platform and operating cost cuts under Project Lakshya.
Shares of Ola Electric jumped 17 percent in Monday's trading session after the company forecast improved gross margins for fiscal 2026 after posting a narrower sequential loss for the first quarter, helped by stronger sales of its newer, more cost-efficient scooter models.
The electric two-wheeler posted a consolidated net loss of Rs 428 crore in Q1FY26, narrowing it from Rs 870 crore in Q4FY25. However, the loss widened year-on-year (YOY) from Rs 347 crore in Q1FY25.
“Our gross margins this quarter have been quite good—and importantly, they’ve come largely without incentives,” Aggarwal said.
The company expects the auto segment to become free cash flow positive by end-FY26, with improvements in working capital, warranty claims, and inventory cycles. Gen3 now accounts for 80% of total sales, with Aggarwal calling it Ola’s best product yet in terms of performance, quality, and margins.
Ola is also ramping up its Cell Giga Factory, moving from 1.4 GWh capacity to 5 GWh over the next couple of years. Funding for this is already secured through an SBI-led consortium.
“We will deliver our first 4680 cell vehicles by Navratri,” he said.
The company has Rs 3,200 crore in cash and sees no immediate need for external capital. It has set a sales target of 3.25–3.75 lakh vehicles in FY26.
"Our long-term edge lies in integrated manufacturing, in-house tech, and a direct-to-customer channel,” Aggarwal said. “This is compounding our advantage across every part of the business.”
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