Ola Electric shares extend fall; down for 3rd consecutive session as Q2 revenue slips 43%

Core Insights - Ola Electric reported a consolidated net loss of Rs 418 crore for Q2 FY26, an improvement from a loss of Rs 495 crore in the same period last year [1][7] - Total revenue from operations for Q2 FY26 was Rs 690 crore, marking a 43% decline year-on-year from Rs 1,214 crore in Q2 FY25 [1][7] - The company achieved Auto EBITDA profitability for the first time, with a gross margin of 30.7%, an increase of 510 basis points quarter-on-quarter [7] Financial Performance - The consolidated revenue target for FY26 is set between Rs 3,000 crore and Rs 3,200 crore, with a focus on profitability over aggressive volume growth [4][5] - Gross margins within the auto business are expected to reach approximately 40% by Q4 FY26, with segment EBITDA projected at around 5% [5][7] - Operating expenses were reduced by about 52% compared to the previous quarter [7] Future Outlook - Ola Electric aims to deliver around 100,000 units in the second half of FY26 [4][5] - The cell business is expected to start generating revenue from Q4 FY26, with gross margins stabilizing at around 30% by early FY27 [5][7] - Capital expenditure for the auto segment is earmarked at Rs 100–150 crore for Q3 and Q4 FY26, with expectations of turning free cash flow positive by the end of FY26 [6][7] Strategic Initiatives - The company plans to complete the installation of its 5.9 GWh Gigafactory, primarily financed through project funding from the State Bank of India [6][7] - Ola Electric is set to initiate the next phase of capacity expansion to 20 GWh in the first half of FY27, coinciding with the scale-up of its grid-scale energy offerings [6][7]