Ola Electric Mobility (OLAELEC) Q2 26/27 earnings summary

Executive summary

• Demand exceeds supply; supplier ramp-up, rather than plant capacity, is the main near-term constraint, while management targets sustainable, margin-accretive growth.

• Dealer transition advanced alongside commissioning of 6 GWh cell capacity, cost-base improvements and balance-sheet deleveraging.

• The consolidated review conclusion was qualified over the timing of liquidated-damages provisions; auditors otherwise found no matter indicating material misstatement.

Financial highlights

• Q2 FY27 revenue was INR 421 crore versus INR 455 crore in Q1 and INR 690 crore YoY; H1 revenue was INR 876 crore versus INR 1,518 crore.

• Q2 gross profit was INR 126 crore and gross margin 29.93%, versus INR 139 crore and 30.5% in Q1; operating expenses were INR 369 crore versus Q1’s INR 390 crore excluding a one-time INR 57 crore reversal.

• Q2 operating EBITDA was -INR 218 crore and adjusted operating EBITDA -INR 246 crore, versus -INR 165 crore and -INR 195 crore in Q1; Q2 PAT loss was INR 362 crore versus INR 336 crore.

• Q2 operating cash flow was -INR 188 crore and free cash flow -INR 371 crore; H1 net cash used in operating activities was INR 403 crore versus INR 343 crore.

• H1 loss after tax was INR 698 crore versus INR 846 crore; Q2 total expenses were INR 639 crore, and basic and diluted EPS were both INR (0.78).

Outlook and guidance

• Production is expected to reach ~25,000 vehicles in December as supplier capacity ramps; paid-order backlog is expected to clear with higher output.

• Dealer-network targets are 450 stores by December 2026 and 700+ by March 2027; operating expenses are expected to decline as most company stores close.

• Gross margin is expected to ease in Q3 and Q4 due to dealer commissions, while operating margin is expected to improve meaningfully; introductory commissions may decline over 2–3 quarters.

• S1 Z deliveries are planned for Q4 FY27, subject to testing and demand priorities; LFP integration into existing products is also expected from Q4.

• FY28 Auto cell use is expected at 2–3 GWh, equivalent to 400,000–500,000 vehicle orders assuming a 5 kWh average pack; Shakti Gen 2 is ready for a Q4 FY27 launch.