Ola Electric delivers 34% gross margin in Q3; executes structural reset to lower break-even

Ola Electric on Friday (February 13, 2026) said its consolidated revenue from operations stood at ₹470 crore, with total deliveries of 32,680 units in the third quarter ended December 31, 2025.

The Bengaluru-based firm said the quarter marks a structural reset for the company, as it realigned its retail footprint, cost structure, and operating model to a sustainable steady state amid slower EV penetration growth and the need to strengthen service execution.

The company delivered a record consolidated gross margin of 34.3%, expanding 15.7% points year on year and 3.4% points quarter on quarter, reflecting the structural advantages of its vertically integrated model, Gen 3 platform economics, and disciplined execution, it added.

“Q3 FY26 marks a structural reset for Ola Electric. We chose to fix the fundamentals by restoring service execution, resetting our cost structure, and deepening vertical integration. The result is a leaner operating model with materially lower break-even and industry-leading gross margins,” a company spokesperson stated.

With service metrics stabilising and the manufacturing facility transitioning into commercial scale deployment, the company is positioned to enter the next phase of growth with significantly improved operating leverage, the spokesperson added.

The company said it has undertaken a comprehensive transformation of its operations through store and service network optimisation and AI-led automation.

“Over the next couple of quarters, these measures are expected to bring quarterly consolidated opex down to ₹250-300 crore in next couple of quarters, lowering the company’s EBITDA breakeven to about 15,000 units per month,” it added.

As demand recovers, this operating model is expected to enable up to 3-4x volume scaling with minimal incremental opex, resulting in strong operating leverage and a clearer path to sustainable profitability, the company stated.

During the quarter, the company doubled cell production quarter on quarter to 72,418 cells, achieved the first commercial deployment of in-house 4680 Bharat Cells into customer vehicles, and launched Ola Shakti, its first residential Battery Energy Storage System (BESS) product.

The Gigafactory (company’s production facility) is currently operating at around 2.5 GWh of installed capacity, with planned scale-up to 6 GWh by March 2026, it stated.

As global battery demand expands across EV adoption as well as solar-plus-storage, grid-scale deployments, and data centre energy requirements, the Gigafactory provides a strategic lever to deepen vertical integration, improve unit economics, and participate meaningfully in the growing energy storage market, it added.