Ola Electric Mobility Limited has released the transcript of its earnings conference call held on May 20, 2026, concerning the audited standalone and consolidated financial results for the fourth quarter and financial year ended March 31, 2026. During the call, the management highlighted significant improvements in financial fundamentals. For Q4 FY26, consolidated gross margins reached 38.5%, a substantial increase from 34.3% in Q3 FY26 and 13.7% in Q4 FY25. Even excluding production-linked incentives (PLI), gross margins stood at 33.5%, positioning Ola Electric with industry-leading margins ahead of most two-wheeler OEMs, including ICE incumbents. This was attributed to vertical integration, Gen 3 maturity, rising architecture, downstream control, and increasing integration of proprietary cells. A key milestone achieved in Q4 FY26 was the company's first operating cash flow positive quarter, with consolidated CFO at ₹91 crore. The Auto business specifically delivered ₹213 crore of CFO and ₹173 crore of free cash flow in Q4. This marks a transition from a heavy build-out phase to disciplined scale-up. Operational expenses (OpEx) have also seen a significant reduction, decreasing from ₹844 crore in Q4 FY2024-25 to ₹428 crore in Q4 FY2025-26. The company expects OpEx to further reduce to approximately ₹350 crore in the coming quarters. The management emphasized that with a vertically integrated model, approximately 90% of OpEx is fixed, leading to high operating leverage. As sales rebound, this is expected to translate into net margin improvements. The company is well-positioned to capture the growing demand for EVs, with its automotive and Gigafactory capacities already in place to support scaling up to a million units per year without incremental capital expenditure. Current inventory levels are low, with an auto backlog indicating strong demand. The company anticipates a 10-20% increase in volumes in the near term as delivery timelines improve. Looking ahead to Q1 FY27, Ola Electric expects 40,000 to 45,000 orders and consolidated revenue of ₹500 to ₹550 crore, nearly double the Q4 level. The Auto business is projected to move towards adjusted operating EBITDA and cash flow positivity through FY27. The company is also scaling its Gigafactory operations, with 2.5 GWh currently operational and installation up to 6 GWh expected to be completed by the end of the current quarter. The Gigafactory is expected to support ₹15,000 to ₹20,000 crore of annual revenue scale across Auto and Cell businesses without significant incremental CapEx. The company plans to transition its full vehicle portfolio to its own cells by September 2026, with 15% of current orders already utilizing proprietary Bharat Cells. Future growth engines include the Shakti (energy storage solutions) and Mahashakti (grid storage) products, which are being developed alongside the core EV business. The company is also exploring external sales of its cells to other manufacturers, both domestic and global.
