Ola Electric on Thursday said its automobile business turned profitable in the quarter ended September 2025 with pre-tax earnings growing by 0.3 per cent against a contraction of 5.3 per cent in the preceding three months.
The positive EBITDA (earnings before interest, taxes, depreciation and amortisation) of 0.3 per cent in July-September marks the company’s first quarter of EBITDA profitability, Ola Electric said in a statement.
The company also announced that its auto gross margin expanded sequentially by 510 basis points to 30.7 per cent, higher than most ICE (conventional engine) two-wheeler companies, with minimal PLI contribution of 2 per cent.
This marks a significant inflection point in the company’s journey toward sustainable profitability supported by strong gross margin expansion and disciplined cost management, the statement said.
The company’s consolidated revenue from operations in July-September quarter stood at Rs 690 crore with total deliveries of 52,666 vehicles during the period.
The Bengaluru-based firm said its second quarter performance demonstrates the strength of its vertical integration strategy and operational discipline.
The company’s cost optimisation efforts have continued to deliver results, with auto operating expenses being reduced to Rs 258 crore from Rs 308 crore in the year-ago period.
Consolidated operating expenses were further reduced to Rs 416 crore from Rs 451 crore, it added.
The company expects auto opex to decline to around Rs 225 crore by Q1 of FY27, with consolidated operating expense targeted at Rs 350-375 crore through operational consolidation and technology-driven efficiencies.
On business outlook, the firm said that for the second half of the current fiscal, it is targeting deliveries of around 1 lakh units, reflecting a strategic focus on margin discipline in a hyper-competitive market.
On a full-year basis, the company now expects FY26 consolidated revenue of around Rs 3,000-3,200 crore, with new Ola Shakti volumes beginning in Q4 to grow and diversify the top line.
The auto segment is expected to exit Q4 with gross margins of around 40 per cent and segment EBITDA of around 5 per cent, it said.
The cell business will start contributing to revenue from Q4 onward through inter-group supply and external Shakti sales, with cell gross margins expected to stabilize at 30 per cent by early FY27, the company stated.
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