Ola Electric achieves positive cash flow, bets demand revival in FY27
New Delhi, May 20
Ola Electric's operating cash flow turned positive in the January-March quarter of FY26. The company expects orders in the current quarter to nearly double sequentially to around 45,000 units, driven by improving service operations and recovery in sales momentum.
The company, in a press release accompanying its audited Q4 and FY26 results, said consolidated operating cash flow for Q4 FY26 stood at Rs 91 crore, supported by stronger margins, lower operating expenses, Production Linked Incentive (PLI) inflows and tighter working capital discipline.
"Ola Electric delivered its first operating cash flow positive quarter in Q4 FY26, with consolidated CFO of Rs 91 Cr, supported by PLI inflows, stronger gross margins, lower opex, and tighter working capital discipline," the company said.
The Bengaluru-headquartered EV maker reported consolidated revenue from operations of Rs 265 crore in Q4 FY26 and Rs 2,253 crore for the full financial year. Deliveries stood at 20,256 units in the March quarter and 1,73,794 units for the full year.
The company said consolidated gross margin improved sharply to 38.5 per cent in Q4 FY26, compared with 34.3 per cent in Q3 FY26 and 13.7 per cent in Q4 FY25.
Commenting on the performance, an Ola Electric spokesperson said, "FY26 was a reset year for Ola Electric. We strengthened the fundamentals of the business across service, product quality, gross margins, operating costs, cash discipline, sales productivity, and cell manufacturing."
"Q4 showed the reset working: gross margin reached 38.5 per cent, operating cash flow turned positive for the first time, service materially stabilised, and sales recovery began," the spokesperson added.
The company said operating expenses, including lease rentals, reduced from Rs 844 crore in Q4 FY25 to Rs 428 crore in Q4 FY26, and are expected to decline further towards Rs 350 crore per quarter over the next few quarters.
Ola Electric said its service operations improved significantly during the year, with average service turnaround time reducing by 88 per cent from around nine days in October 2025 to nearly one day in March 2026.
According to the release, April registrations rose 20 per cent month-on-month to 12,166 units even as the broader electric two-wheeler industry declined by over 22 per cent.
The company also highlighted progress in its battery cell manufacturing business, stating that installation at its Gigafactory has largely been completed up to 6 GWh capacity and commercialization is expected by the end of the current quarter.
"Ola Electric enters FY27 focused on scaling with discipline," the company said, adding that it expects "Q1 FY27 orders to double Q-o-Q to nearly 45,000 units."
— ANI
Reader Comments
Positive cash flow is great, but let's not forget the massive customer complaints about quality issues in FY25. Bajaj and TVS are eating their lunch with better reliability. Let's see if they can sustain this recovery without cutting corners. 🤔
The PLI scheme is a blessing for Indian EV companies. 38.5% gross margin is solid - shows they've got the unit economics right now. But I worry about the service network in tier 2 and 3 cities. That's where the real battle will be.
My cousin works at one of their service centers in Bangalore. The turnaround time improvement is real - they've actually trained technicians properly now. But April registrations of 12,166 units while the industry dropped 22% is a good sign. Baby steps! 🚀
I'm still not convinced. Bhavish Aggarwal keeps making big promises and then backtracking. Remember the 1 million orders claim? Now they're targeting 45,000 orders per quarter. Let's see if the Gigafactory commercialization actually happens this time.
Interesting to see an Indian EV company achieve positive cash flow so early in their journey. In global context, most EV startups burn cash for years. If they can maintain this discipline, they could be a serious player. The service improvement is key.
R