Q2 2026 Ola Electric Mobility Ltd Earnings Call Transcript
Key Points
- Ola Electric Mobility Ltd (NSE:OLAELEC) reported a strong gross margin of 30.7%, outperforming many internal combustion engine (ICE) companies.
- The company has turned cash generative with an underlying cash flow from operations of INR15 crores.
- Ola Electric commissioned a giga-factory with a 2.5 gigawatt-hour capacity, aiming to scale up to 5.9 gigawatt-hours by March.
- The launch of Ola Shakti, India's first residential Battery Energy Storage System (BESS) product, is expected to drive new revenue streams.
- The average selling price (ASP) for the two-wheeler business increased from INR121,000 to INR131,000, attributed to better product mix and additional features.
- The market share for Ola Electric Mobility Ltd (NSE:OLAELEC) has been underwhelming, with some loss attributed to competitors buying market share.
- The company faces challenges in the availability of trained EV technicians, impacting the service network.
- Warranty costs have been a drag in previous quarters, although improvements are expected with the transition to Gen 3 products.
- Despite multiple initiatives, there is visible customer frustration regarding service backlogs and resolution times.
- The industry growth has slowed, with the market in a consolidation phase, impacting overall sales dynamics.
Ladies and gentlemen, good day, and welcome to Ola Electric Q2 FY26 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded. Before we begin, a few quick announcements for the attendees. Anything said on this call, which reflects our outlook for the future or which could be construed as a forward-looking statement may involve risks and uncertainties. Such statements or comments are not guarantees of future performance, and actual results may differ from those statements. To begin with, I would like to request Bhavish Aggarwal, Chairman and Managing Director of Ola Electric; and Harish Abichandani, CFO of the company, to take you through the results.
Thank you, Abhishek, and good to meet everybody again after three months. Again, I'm going to largely keep time for Q&A. My comments are going to be very, very brief. We published the shareholder letter in good time this time, and I'm assuming most of you have gone through
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