OLAELEC - Ola Electric Mobility Limited Share Price

In the earnings conference call held on May 20, 2026, Ola Electric's management, led by Founder and Chairman Bhavish Aggarwal and CFO Deepak Rastogi, provided an optimistic outlook for the company. They emphasized a robust recovery in demand for electric vehicles (EVs), with anticipated Q1 FY27 orders between 40,000 and 45,000, resulting in projected consolidated revenues of Rs.500 to Rs.550 crores, nearly double that of Q4.

Key highlights included:

• The company achieved consolidated revenue of Rs.2,253 crores for FY26, with 173,794 deliveries and a gross margin increase to 30.6% despite lower volumes.
• Consolidated gross margins for Q4 FY26 stood at 38.5%, significantly improving from 34.3% in Q3 and 13.7% in the same quarter the previous year. Excluding Performance Linked Incentives (PLI), margins were 33.5%.
• Operating cash flow was positive for the first time, amounting to Rs.91 crores in Q4, supported by strong gross margins and reduced operating expenses, which fell from Rs.844 crores in Q4 FY25 to Rs.428 crores in Q4 FY26. The goal is to further reduce OpEx to around Rs.350 crores in the coming quarters.
• The Auto segment is nearing positive cash flow generation, with expectations of cash flow positivity through FY27.
• The Gigafactory, expected to produce up to 6 GWh, is nearing completion, with aims to increase capacity to 20 GWh.
• The focus remains on ramping up both EV and battery production without needing significant additional capital.

Management reiterated their commitment to operational improvements and sustained margin leadership, positioning Ola Electric favorably in India's rapidly evolving EV market. They also mentioned ongoing demand growth, with positive market signals supporting an increase in volume by 10-20% in the near term.

Question 1: "In Quarter 4, you mentioned you were going to have good revenue, but still it is not reflecting. Why is this the case?"
Answer: I'm glad you asked. Registrations are a public record; in March we did 10,000, April 12,000, and May is trending towards 14,000-15,000. While orders are growing, Q4 revenue was lower due to our focus on fixing operations. We expect to see sales improve this quarter. Our forecast for Q1 is 40,000-45,000 orders with registrations following closely behind.

Question 2: "Are we still focusing on electric two-wheelers or do you plan to prioritize products like Shakti?"
Answer: Two-wheelers are our core business, accounting for 100% of our revenue today. The Shakti product has been developed with low CapEx and ties into our Gigafactory vision. We will scale Shakti as our battery production meets automotive needs, which is our priority now, given the demand for battery storage solutions is growing rapidly.

Question 3: "What is your plan on scaling up to 6 GWh of battery capacity?"
Answer: The 6 GWh is under commissioning, and we expect it to be operational by the end of this quarter. The first 6 GWh will serve our auto business and the growing market demand. We're also exploring external sales for our cells, anticipating the larger market rapidly expanding to 20 GWh.

Question 4: "How do you see your current cells versus imported ones affecting cost advantage?"
Answer: Despite the recent lithium price upcycle, it's currently cheaper for us to produce our own cells than import them. As we scale production towards 6 GWh, we project an additional 10%-15% cost advantage on our own cells, enhancing our competitive edge in the market.

Question 5: "What is the current operational status of your Gigafactory?"
Answer: Currently, we have 2.5 GWh operational and expect another 3.5 GWh by the end of the quarter. This will ramp up production significantly, with dedicated capacity for our auto business and external sales as our output improves, leading to better margins.

Question 6: "What is your strategy regarding advertising and customer outreach?"
Answer: We traditionally rely on product strength and word-of-mouth over extensive advertising, which helps us control costs. However, we may explore advertising opportunities to communicate our service improvements and engage a broader customer base as demand picks up.

Question 7: "When can we expect to see new vehicle product launches?"
Answer: We opted to focus on stabilizing operations before launching new products. However, as we ramp up production and see improved sales, we are ready to resume product launches later this year.

Question 8: "What are your long-term R&D goals in battery technology?"
Answer: We're making gradual advancements in solid-state and sodium-ion batteries, currently at the lab scale. The immediate focus is ramping up our existing cell production, but as the market evolves, we'll introduce these advanced technologies in due course.

Question 9: "How do you plan to improve customer service and parts availability?"
Answer: We've made significant strides in our supply chain to ensure parts are stocked at service centers. Previously, slow parts procurement led to delays, but we're now proactively forecasting parts needs, which has reduced wait times significantly for service repairs.

Question 10: "What is the status of funding for the cell business and potential monetization?"
Answer: While I can't provide exhaustive details, we've received considerable interest for funding in our cell business. We aim to expand capacity beyond 6 GWh and will pursue external capital opportunities to support our ambition of leading the market in this space.