1. Opening Hook
If EVs had a caffeine equivalent, this quarter’s call was it. Bhavish Aggarwal, as always, opened with calm bravado: “We have 30.7% gross margins — better than many ICE companies.”
The founder who once raced cabs is now racing cost curves. Between 4680 cells, battery ambitions, and new Ola Shakti home batteries, Ola isn’t just chasing vehicles anymore — it’s chasing energy dominance.
Still, one thing remains stubbornly unchanged — Bhavish’s tone oscillates between visionary and defensive. Read on for the blend: 70% ambition, 30% operational chaos, and one big question — can Ola finally convert tech swagger into sustainable scale?
2. At a Glance
| Metric | Q2 FY26 | QoQ / YoY | Key Takeaway |
|---|---|---|---|
| Gross Margin | 30.7% | ↑ | Now comparable to ICE OEMs; 2% from PLI |
| Operating Cashflow | ₹15 Cr | +ve | Auto business turns cash-generative |
| Gigafactory Output | 2.5 GWh (→5.9 by Mar’26) | New | Ramp begins |
| BESS “Ola Shakti” Launch | Oct’25 | New biz | India’s 1st residential battery storage product |
| BESS ASP | ₹50,000–₹2,00,000 (avg ₹1.25–1.5L) | – | To hit ₹1,000 Cr revenue in FY27 |
| PLI Impact | 2% margin now → 7–8% by Q4 | – | Full portfolio eligible from Jan’26 |
| Auto Delivery Guidance (H2) | 1,00,000 units | – | Consolidation mode |
| EBITDA Breakeven Volume | 20,000/month | ↓ from 25k | Achieved in Q2 |
| Market Share Goal | 25% long-term | Flat near term | Strategic pause |
| Gross Margin Target (Q4FY26) | 36–37% | +5–6 points | PLI + cost control |
3. Management’s Key Commentary
“30.7% gross margin, better than many ICE companies.”
(Translation: EVs are finally making money — at least on PowerPoint.)
“Auto business is now cash-generative.”
(Translation: Ola finally stopped burning money faster than its scooters charge.)
“We launched Ola Shakti — a home energy storage product built with our own 4680 cells.”
(Translation: From scooters to sockets, we now sell everything that stores charge.) ⚡
“₹1,000 crore BESS revenue by FY27.”
(Translation: The inverter market just got an upgrade — and a Bhavish.)
“PLI will add 7–8 gross margin points by Q4.”
(Translation: The government subsidy is the new angel investor.)
“We don’t mind short-term market share loss — others are
buying share; we’re buying sustainability.”
(Translation: We’re losing sales, but let’s call it discipline.) 😏
“No more capex in Auto — all investments already behind us.”
(Translation: The wallet’s closed until the stock re-rates.)
4. The Numbers Behind the Noise
Ola is executing a rare pivot — from blitz-scaling to balance-sheet sanity.
- Revenue Mix: Scooters 85%, Motorcycles 10–15%, BESS 0% (to start in Q4).
- ASP Jump: ₹1.21L → ₹1.31L, driven by Gen3, accessories, MoveOS+ subscriptions.
- PLI: Minimal in Q2, full benefit from Jan’26 (adds ~7–8 points to margins).
- Employee Cost: Down from ₹450 Cr → ₹416 Cr — Bhavish calls it “sustainable optimization.”
- Breakeven: Auto EBITDA positive at 52,000 deliveries; breakeven ~20,000/month.
- Parts & Service: New profit center; expected to add 2–3 points to margins by FY27.
- Cashflow: Positive from Auto; consolidated OpEx trending down each quarter.
TL;DR: Ola’s now acting like an OEM, not a startup.
5. Analyst Questions – Highlights
Goldman Sachs:
🔹 BESS revenue assumptions?
— FY27 ₹1,000 Cr; ~60,000–70,000 units @ ₹1.25–1.5L ASP. Strong response from pre-orders.
🔹 Auto ASP jump reason?
— Higher software subscriptions & accessories, Gen3 pricing mix, motorcycles’ higher ticket size.
Bank of America:
🔹 Gen3 transition & PLI status?
— Fully Gen3 by Q3; full PLI
