Loss narrows to Rs 418 crore, Auto EBITDA turns constructive

Ola Electrical Q2 Outcomes: Ola Electrical Mobility reported a consolidated internet lack of Rs 418 crore for the quarter ended September 30, 2025, narrowing from Rs 495 crore in the identical interval final 12 months. Income from operations fell 43 per cent year-on-year to Rs 690 crore in contrast with Rs 1,214 crore in Q2FY25.

The corporate introduced that it achieved Auto EBITDA profitability for the primary time, supported by a gross margin of 30.7 per cent — an enchancment of 510 foundation factors sequentially. Working bills have been decreased by almost 52 per cent quarter-on-quarter, serving to enhance total effectivity.

Ola mentioned its auto phase turned cash-positive throughout the quarter, with money circulate from operations at Rs 15 crore. Nonetheless, complete money circulate stood at a adverse Rs 40 crore attributable to a one-time festive stock build-up.

Capex and monetary outlook

For the automotive division, Ola Electrical expects capital expenditure of Rs 100–150 crore over the following two quarters. The corporate goals to attain constructive free money circulate in its automotive enterprise by the tip of FY26.

Funding within the battery phase will proceed, with progress underway on the 5.9 GWh Gigafactory venture funded primarily by the State Financial institution of India. Ola plans to develop capability to twenty GWh within the first half of FY27 as a part of its scaling technique.

Ola anticipates a extra balanced income combine within the coming quarters as its power merchandise phase grows. Gross margins are anticipated to rise additional with greater Gen 3 volumes, in-house cell integration, and value management measures.

For the second half of FY26, the corporate targets deliveries of round 100,000 items and consolidated income of Rs 3,000–3,200 crore, with a deal with profitability over quantity progress. Ola tasks gross margins of about 40 per cent for its auto phase by Q4FY26, with phase EBITDA round 5 per cent.

The cell division is predicted to begin contributing to income from Q4FY26 by way of inner and exterior gross sales of Ola Shakti items, with margins more likely to stabilize close to 30 per cent by early FY27.

Ola Electrical shares opened at Rs 50.02 apiece on the BSE, hitting an intraday excessive of Rs 51 and a low of Rs 48.95. The inventory declined over 1 per cent after the Q2 outcomes announcement.