Ola Electric Hits Record 34.3% Gross Margin in Q3 FY26 Amid Bold ‘Structural Reset’

Ola Electric has officially entered its "turnaround" phase. In its Q3 FY26 earnings report released today, the Indian EV giant announced a record-breaking 34.3% consolidated gross margin, marking a massive 15.7 percentage point jump year over year.

The company is calling this quarter a “structural reset,” moving away from a high burn expansion model toward a leaner, vertically integrated powerhouse.

Key Financial Highlights: The Path to Profitability

Despite a challenging environment for EV penetration, Ola Electric’s financial metrics show a significant shift in efficiency:

• Revenue: Consolidated revenue from operations stood at ₹470 Cr.

• Operating Expenses (Opex): Slashed from a peak of ₹840 Cr (Q4 FY25) to ₹484 Cr.

• Lower Breakeven: The company has successfully reset its EBITDA breakeven to just 15,000 units monthly.

• E2W Deliveries: 32,680 units delivered in Q3 FY26.

“Q3 FY26 marks a structural reset. We chose to fix the fundamentals by restoring service execution and deepening vertical integration,” an Ola Electric spokesperson stated.

4680 Bharat Cells: The Secret Sauce

The "moat" for Ola Electric continues to be its Gigafactory. This quarter marked the first commercial deployment of in house 4680 Bharat Cells into customer vehicles.

Gigafactory Milestones:

1. Production Boom: Cell production doubled quarter on quarter to 72,418 cells.

2. Capacity Scaling: Currently operating at 2.5 GWh, with a clear roadmap to reach 6 GWh by March 2026.

3. New Markets: Launched Ola Shakti, a residential Battery Energy Storage System (BESS), signaling a move into the home energy sector.

Solving the "Service" Problem: Hyperservice Results

Addressing previous customer concerns, Ola’s Hyperservice initiative reported measurable success:

• Same Day Success: Nearly 80% of service requests are now completed within 24 hours.

• Backlog Cleared: The service backlog has been reduced by 50%, with wait times dropping from 14 days to 7-8 days.

• AI Integration: The company is now using AI led automation for faster diagnostics and parts tracking.

Industry Outlook

By achieving PLI certification for its Gen 3 portfolio, Ola Electric has secured a long term margin lever that rewards domestic manufacturing. With opex expected to drop further to ₹250-300 Cr in the coming quarters, the company is betting that its "leaner" version will be far more profitable as the Indian market scales.