The company’s revenue from operations came in at Rs 265 crore, down 57% from Rs 611 crore it posted in the corresponding quarter of the previous financial year.
The company reported an EBITDA loss of Rs 281 crore for the quarter under review versus Rs 630 crore in the year-ago period.
Consolidated gross margin stood at 38.5% in Q4FY26 compared with 34.3% in Q3FY26 and 13.7% in Q4FY25.
The company said this now represents an industry-leading gross margin profile, significantly ahead of most two-wheeler OEMs, including established ICE players.
However, Ola cautioned that gross margins could moderate in Q1 and Q2FY27 due to commodity inflation and pricing measures aimed at accelerating growth amid ongoing geopolitical uncertainties. Despite this, the company said it has sufficient margin buffers to remain aggressive on pricing and customer value propositions while continuing to maintain strong unit economics.
The company said Q4FY26 marked its first quarter of positive operating cash flow despite being a relatively low-volume quarter.Consolidated cash flow from operations (CFO) stood at Rs 91 crore during the quarter, supported by PLI inflows, stronger gross margins, lower operating expenses and tighter working capital discipline. Consolidated free cash flow (FCF) improved to negative Rs 131 crore.
The Auto business generated cash flow from operations of Rs 213 crore and free cash flow of Rs 173 crore in Q4FY26. Meanwhile, the Cell business continued to remain in investment mode as the company ramped up its Gigafactory operations and prepared for the next phase of cell and energy storage product launches.
Ola said FY26 was also a year of cost rationalisation and tighter operating discipline. Consolidated operating expenses, including lease rentals, declined sharply to Rs 428 crore in Q4FY26 from Rs 844 crore in Q4FY25.
According to the company, the reduction was driven by network rationalisation, tighter control over sales and service costs, lower fixed overheads and improved operating governance.
The company added that operating expenses are expected to decline further towards Rs 350 crore per quarter over the next few quarters as the full impact of FY26 cost measures begins to reflect in the business. It said the leaner cost structure positions the company better as volumes recover.
Ola Electric outlook
Based on current trends, the company expects Q1FY27 orders to be in the range of 40,000-45,000 units, nearly double the levels seen in Q4FY26.
As volumes improve, the company expects its auto business to move towards adjusted operating EBITDA and free cash flow positivity during FY27. It said this transition will be supported by strong gross margins, further reduction in operating expenses over the next few quarters, disciplined working capital management, supplier and factory ramp-up, and better utilisation of the existing gross block.
Ola Electric shares ended at Rs 36.94, higher by 1% on the BSE on Wednesday.
