Ola Electric’s Path Toward Profitability
Ola Electric is entering a critical phase as it tries to turn strong gross margin discipline and its vertically integrated business model into sustainable profit. During Q2 FY26, the company slowed its pursuit of market share, which caused both revenues and deliveries to decline. However, this move also helped narrow its financial losses.
Steering To Profitability
In this quarter, Ola Electric placed a stronger emphasis on margins and product quality. While vehicle deliveries dropped sharply, the company’s core automotive division achieved positive EBITDA for the first time, pointing to a healthier financial foundation.
The Cell Shakti Expansion
To balance the slowdown in vehicle sales, Ola Electric is expanding into new, higher-margin ventures. The company plans to increase its battery cell capacity to 20 GWh, up from the earlier projection of 5 GWh. Central to this effort is Ola Shakti, its new vertical focused on energy storage solutions for both residential and commercial sectors. Ola Electric expects this business could reach multi-crore value by FY27.
Big Bets and Future Goals
“Ola Electric’s next act will be crucial – converting gross margin discipline and vertically integrated stack into sustained profit.”
This statement underscores the company’s strategy: slowing aggressive expansion to prioritize long-term profitability through disciplined growth and product-led efficiency.
Author’s Summary: Ola Electric is shifting from pursuit of market share to a focus on sustainable profits, expanding into high-margin energy storage while improving its financial stability.