Core Insights - Ola Electric reported a consolidated total revenue of Rs 690 crore for Q2 FY26, marking a 43% year-on-year decline from Rs 1,214 crore in Q2 FY25 [1][10] - 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 [2][10] - Ola Electric's consolidated loss narrowed to Rs 418 crore in Q2 FY26, compared to a loss of Rs 495 crore in the same period last year [10] Financial Performance - The auto business turned cash-generative with an underlying cash flow from operations of Rs 15 crore, although reported cash flow was negative at Rs 40 crore due to one-time festive inventory build-up [2][10] - Operating expenses were reduced by approximately 52% compared to the previous quarter [2][10] Future Outlook - The company anticipates a more balanced and diversified revenue mix as energy products ramp up, with gross margins expected to strengthen further [4][5] - For the second half of FY26, Ola targets total deliveries of about 100,000 units and projects consolidated revenue for FY26 to be around Rs 3,000–3,200 crore [5][10] - The auto segment's gross margins are expected to reach about 40% by Q4 FY26, with segment EBITDA projected at around 5% [5][10] Capital Expenditure and Growth Plans - Capital expenditure for the auto segment in Q3 and Q4 FY26 is estimated between Rs 100 crore and Rs 150 crore [7][11] - The cell business is expected to start contributing to revenue from Q4 FY26, with gross margins stabilizing at around 30% by early FY27 [6][11] - Ola plans to complete the 5.9 GWh Gigafactory installation, funded largely by project finance from the State Bank of India, and aims to expand capacity to 20 GWh in the first half of FY27 [8][11] Strategic Focus - FY26 is described as a transition year for the company, focusing on establishing sustainable profitability in the auto business while building its energy vertical [9][11] - By FY27, Ola expects to have a broader revenue base, higher structural margins, and stronger cash conversion, positioning itself for long-term growth across both auto and energy segments [9][11]