Shareholder letter
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Headline KPIs Financial Results and Operational Commentary Q3 FY26 marks a structural reset for Ola Electric. As EV penetration growth has slowed and our service execution has required strengthening, we chose to realign our retail footprint, cost structure, and operating model to a sustainable steady state by fixing the fundamentals and not optimising for short-term volume. The result is a structurally lower volume breakeven business with signi ficantly improved operating leverage. Built on Deep Structural Advantage We have invested ~₹5,300 crore across manufacturing infrastructure, battery innovation, and R&D platforms. This scale of this investment towards EVs is unmatched among Indian OEMs and is a very strong structural advantage over competitors. This has created: ● Full vertical integration across motors, batteries, cells, electronics and software ● Scalable manufacturing infrastructure ● A proprietary technology stack ● A deep product roadmap Investments in Manufacturing vs Pure-play E2W peer *Consolidated Adj. Operating EBITDA Margin refers to Operating EBITDA (excluding other income) including the lease expenses 2
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That structural advantage is re flected in our numbers. In Q3 FY26, we delivered a record consolidated gross margin of 34.3%, expanding 15.7 pp Y o Y and 3.4 pp QoQ. This is a direct outcome of vertical integration, Gen3 economics, and disciplined execution. As we’ve said before, we see our GMs in the 35-40% range in FY27. Gross margin trend: Ola vs E2W Peer Importantly, the heavy capex phase is largely behind us, with the Gigafactory final phase completion by March 26. Our current manufacturing footprint supports 1 million vehicles and 6 GWh of cell capacity. The focus is now on growing into this revenue potential of ₹15,000-20,000 crore over next few years. On the R&D front, our ~₹2,000 crore platform investment has stabilised into a mature Gen3 architecture with superior quality, unit economics, and di fferentiation. Multiple future products built on this platform are in advanced stages of development, requiring limited incremental R&D and will be launched in a sequenced manner after the business stabilises. Product Roadmap: 3
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Service Challenges: Execution, Not Product Quality We acknowledge that service execution gaps impacted brand trust for prospective customers. These were service infrastructure and execution issues — not product quality issues. Customer trust and preference for our product remains strong, as indicated by an independent third-party survey showing ~90% overall product satisfaction and high repurchase intent. Warranty economics further reinforce product robustness. With the full transition to Gen3 and Gen1 largely out of warranty, FY26 warranty provisions are expected to be 2–3% of revenue, among the lowest in the Indian EV industry and competitive with global EV benchmarks. This validates our engineering depth and platform maturity. Decline in warranty cost across generations Warranty provisions as % of Revenue from operations Peer analysis: Warranty Provisions as a % of Revenue from operations* *FY26E figures for Ola | FY25 for Pure-play E2W peer, and CY25 for Global EV peer 4
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The challenge we faced was service scale and execution. Through our Hyperservice initiative, we have structurally strengthened service operations by: ● Improving parts availability through supply chain redesign and D2C genuine parts platform ● Technician hiring and training programs ● Tighter governance and service performance tracking ● AI-led automation for faster diagnostics and job card processing These actions have reduced service backlogs by nearly half - from 14 days in November to 7–8 days currently, and with further reductions underway. We are now completing 80% of service tickets on the same day. While service execution gaps have temporarily impacted brand trust among prospective customers, ownership satisfaction among active users remains strong. As service performance stabilises fully, we expect the underlying strength of our product proposition to reassert itself in the market. As service metrics normalise and volumes recover, the combination of improved margins and a structurally lower cost base materially accelerates our path to pro fitability. Roadmap for Sales Recovery and Growth Our roadmap for sales recovery is anchored in restoring trust, reinforcing product superiority, and leveraging our structural advantages as the industry transitions into its next phase of adoption. The first lever is service stabilisation. Recent sales softness was driven by service perception rather than product competitiveness. As backlogs reduce and Hyperservice scales, brand con fidence among prospective buyers is normalising. We have reduced service backlogs by nearly half and now complete ~80% of tickets on the same day. The second lever is the inherent strength of our product proposition. Across price points, our portfolio delivers: ● Industry-leading range ● Strong acceleration and performance ● Competitive pricing ● Software-enabled differentiation On a range-indexed-to-product-cost basis, our portfolio delivers a structural advantage of approximately ~50% over the competition. As service-related concerns recede, this di fferentiated value proposition — combined with the inherent economic bene fits of EV ownership — is expected to re-emerge as a key driver of purchase decisions. Further, the transition to the 4680 platform will meaningfully enhance this advantage, strengthening both performance economics and overall customer value. 5
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Real world Range vs Price (Selected models) 4680 cells translating to high 2W performance Powering India’s longest range Electric 2-Wheelers The industry is entering a more mature adoption phase. Early adopters have largely transitioned, and the next wave of customers will require stronger articulation of EV economics, including up to 90% operating cost savings versus ICE alternatives. This phase will demand sharper category education and marketing. As a focused EV company with deep vertical integration, scalable manufacturing, and strong supply chain control, we are uniquely positioned to lead this transition with structural cost competitiveness. 6
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Finally, our installed base of around 11 lakh customers, the largest in the Indian EV ecosystem, remains a powerful strategic asset. Independent surveys indicate high ownership satisfaction and repurchase intent. As operational consistency strengthens, this base will increasingly act as organic brand advocates, reinforcing trust through lived experience. Our recovery thesis rests on three reinforcing pillars: ● Service stabilisation restoring confidence ● Clear product superiority in range, performance, and value ● Installed base advocacy amplifying brand trust With our cost structure reset and operating leverage embedded, incremental sales recovery translates directly into improved pro fitability and cash discipline. We remain focused on disciplined execution as we position for the next phase of EV market expansion. Operating Model Transformation & Breakeven Reset In parallel with strengthening service execution, we have undertaken a comprehensive operating model reset. This is not a short-term cost cut, rather a structural redesign across manufacturing, retail, service, and corporate functions to materially improve operating leverage as volumes recover. At peak expansion in Q4 FY25, consolidated quarterly opex (including leases) was approximately ₹840 crore. Through structural actions implemented this year, Q3 FY26 opex reduced to ₹484 crore. As these measures fully flow through, we expect consolidated quarterly opex to reach a steady-state of ₹250–300 crore over the next couple of quarters. Adjusted Operating expenses (₹ crore)* * Consolidated Operating expenses including lease expenses 7
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This reset has been driven by structural improvements across the operating model: ● Improved manufacturing yields, higher automation, and better workforce productivity across our vertically integrated lines ● Rationalisation to 700 stores comparable to the footprint when we achieved 40,000–50,000 monthly orders at peak volumes in late 2024. ● Higher productivity per store and per service technician ● AI-driven automation and simplification across central back-office teams ● Leaner corporate structures and tighter cost discipline Importantly, these efficiencies were implemented while preserving our core competitive strengths. R&D and manufacturing excellence remain fully funded, with structural savings creating headroom for continued innovation. At a steady-state opex of ~₹250–300 crore per quarter, EBITDA breakeven reduces to 15,000 units per month. Approximately 85-90% of our consolidated opex is fixed, with only 10-15% variable. Beyond the breakeven threshold, incremental volumes translate into strong margin flow-through. With the current footprint, we can scale to 3–4x current volumes with only incremental increases in fixed costs, unlocking significant operating leverage as demand recovers. Going forward, we will anchor both external communication and internal execution around consolidated financials, while continuing to provide full segment transparency. We also include store leases into our opex calculations to show full cost structure. As an integrated mobility and energy platform, consolidated economics best re flect the embedded operating leverage of our vertically integrated model. Gigafactory: A Long-Term Structural Moat Our Gigafactory ramp continues on track and represents a de fining structural milestone for Ola Electric. Q3 FY26 was a significant execution quarter: ● Doubled cell production vs Q2 to 72,418 cells ● First commercial deployment of in-house 4680 Bharat cells into vehicles delivered to customers ● Launch of Ola Shakti, our first pure-play product powered directly by Gigafactory output This marks the transition from pilot manufacturing to commercial scale integration. We are currently operating at approximately 2.5 GWh of installed capacity, scaling to 6 GWh by March 2026, with full scheduled operations commencement aligned to that timeline. Over the next 12 months, we will progressively increase in-house cell penetration across our automotive portfolio, deepening vertical integration and improving unit economics. We are the only Indian company to operationalise a scaled Gigafactory, positioning us uniquely within the domestic ecosystem. 8
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Globally, battery demand is entering a structural upswing driven by EV adoption but also Solar-plus-storage deployments, Grid-scale battery expansion and Data center energy requirements. As our automotive business stabilizes, the Gigafactory positions us to participate meaningfully in the energy storage market. Our current platform is centered on 4680 cylindrical cells, with roadmap extensions over the next 12–24 months including: ● Additional form factors (46100 and 46120 variants) ● LFP chemistry-based products ● Continued advancement in solid-state and sodium technologies Bharat Cell - 4680 Platform Only Indian E2W Player to transition to 4680 cells leapfrogging ahead of competition * Compared to conventional 2170 cell used by other OEMs ** Complete transition to 4680 cells in Q3 FY 2026 Supported by sustained R&D investment, we see the same virtuous cycle emerging in cells that we demonstrated in automotive: Strong R&D → Advanced technology roadmap → Manufacturing scale → Competitive cost structure → Margin expansion The Gigafactory is a manufacturing asset and a strategic lever that enhances our long-term economics. Q3 marks the beginning of commercial scale deployment, with economic impact expected to deepen progressively as internal cell penetration increases. 9
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Closing Q3 FY26 marks a structural reset for Ola Electric. We used this period to strengthen the foundations of the business restoring service execution, resetting our cost structure, deepening vertical integration, and advancing our Gigafactory ramp. The result is a leaner operating model, despite the Gigafactory ramp up in this period and the deep vertical integration of our business model, with materially lower breakeven, industry-leading gross margins, and scalable infrastructure already in place. With service metrics stabilizing, structural opex reduction underway, and internal cell integration beginning to flow into products, we are positioned to enter the next phase of growth with signi ficantly improved operating leverage. The heavy build phase is behind us. The focus now is disciplined execution, scaling into the capacity created, and delivering sustainable long-term value. 10
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Key Financial Metrics (Unaudited) Key Operating Metrics Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Deliveries (units) 84,029 51,375 68,192 52,666 32,680 Premium 29,283 15,764 17,249 13,418 6,065 Mass 54,746 35,611 50,943 39,248 26,612 Cells Produced (units) 11,744 38,080 72,418 Consolidated (in ₹cr) Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Revenue from Operations 1,045 611 828 690 470 Gross Margin 194 84 214 213 161 Gross Margin (%) 18.6% 13.7% 25.8% 30.9% 34.3% Operating Expenses 654 779 451 416 432 Adj. Operating EBITDA -494 -760 -296 -258 -323 Adj. Operating EBITDA Margin (%)* -47.3% -124.4% -35.7% -37.4% -68.7% PAT -564 -870 -428 -418 -487 CFO -851 -356 -202 -255 -575 FCF -1,076 -690 -341 -405 -781 Automotive Segment (in ₹cr) Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Revenue from Operations 1,045 611 826 688 467 Gross Margin 194 84 212 211 158 Gross Margin (%) 18.6% 13.8% 25.6% 30.7% 33.8% Operating Expenses 533 638 308 258 273 Adj. Operating EBITDA -373 -619 -155 -102 -167 Adj. Operating EBITDA Margin (%)* -35.7% -101.3% -18.8% -14.8% -35.8% PAT -423 -705 -261 -233 -289 CFO -728 -246 -86 -95 -444 FCF -857 -520 -166 -163 -505 Cell Segment (in ₹cr) Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Revenue from Operations 3 4 3 4 9 Gross Margin 2 3 2 2 4 Gross Margin (%) 66.7% 79.3% 65.2% 50.0% 42.3% Operating Expenses 34 32 45 52 51 Adj. Operating EBITDA -8 -3 -19 -27 -39 Adj. Operating EBITDA Margin (%) -29.6% -10.0% -70.4% -100.0% -228.5% PAT -52 -53 -69 -79 -89 CFO -36 -16 -32 -62 -46 FCF -132 -76 -91 -143 -192 Quarterly numbers are subject to limited review by the Auditors. * Adj. Operating EBITDA Margin refers to Operating EBITDA (excluding other income) including the lease expenses 11
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Key Graphs All numbers in ₹ Cr unless otherwise stated Graph 1: Industry E2W volumes and EV Penetration Graph 2: Average Selling Price (ASP) per unit in ₹ 12
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Graph 3: Consolidated GM per unit in ₹ Graph 4: Consolidated Gross Margin with and Gross Margin without PLI 13
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Graph 5: Consolidated Operating Adjusted EBITDA and Adjusted EBITDA Margin*: * Consolidated Operating Adjusted EBITDA represents consolidated operating EBITDA (viz. Excluding other income) adjusted for lease expenses. Graph 6: Consolidated Operating Adjusted EBITDA to CFO to FCF walk *Consolidated Adj. Operating EBITDA Margin refers to Operating EBITDA (excluding other income) including the lease expenses 14
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Detailed financials Ola Electric Mobility Profit and Loss Statement - Consolidated (Unaudited) Consolidated In ₹ Cr Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Revenues Automotive and Cell Sales 924 547 808 671 433 Production linked incentive 121 64 20 19 37 Total Revenue from Operations 1,045 611 828 690 470 Cost of Goods Sold Automotive and Cell 851 527 614 477 309 Total Cost of Goods Sold 851 527 614 477 309 Gross Profit 194 84 214 213 161 Operating Expenses Research and development 29 42 59 60 65 Selling, general and administrative 139 154 103 90 86 Others 486 583 289 266 281 Total Operating Expenses 654 779 451 416 432 Operating EBITDA -460 -695 -237 -203 -271 Other Income 127 117 68 66 34 EBITDA -333 -578 -169 -137 -237 Depreciation, Amortization, and Finance Costs 231 292 259 281 250 Profit / (Loss) Before Tax -564 -870 -428 -418 -487 Provision for taxes - - - - - Profit / (Loss) After Tax -564 -870 -428 -418 -487 Profit / (Loss) Attributable to Common Stockholders -564 -870 -428 -418 -487 15
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Ola Electric Mobility Profit and Loss Statement - Auto (Unaudited) Auto In ₹ Cr Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Revenues Auto Sales 924 547 806 669 430 Production linked incentive 121 64 20 19 37 Total Automotive Revenue 1,045 611 826 688 467 Cost of Goods Sold Auto 851 527 614 477 309 Total Cost of Goods Sold 851 527 614 477 309 Gross Profit 194 84 212 211 158 Operating Expenses Research and development 25 37 46 40 47 Selling, general and administrative 138 151 102 86 85 Others 370 450 160 132 141 Total Operating Expenses 533 638 308 258 273 Operating EBITDA -339 -554 -96 -47 -115 Other Income 108 97 50 49 32 EBITDA -231 -457 -46 2 -83 Depreciation, Amortization, and Finance Costs 192 248 215 235 206 Profit / (Loss) Before Tax -423 -705 -261 -233 -289 Provision for taxes - - - - - Profit / (Loss) After Tax -423 -705 -261 -233 -289 Profit / (Loss) Attributable to Common Stockholders -423 -705 -261 -233 -289 Ola Electric Mobility Profit and Loss Statement - Cell 16
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(Unaudited) Cell In ₹ Cr Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Revenues Cell Sales 3 4 3 4 9 Production linked incentive - - - - - Total Cell Revenue 3 4 3 4 9 Cost of Goods Sold Cell 1 1 1 2 5 Total Cost of Goods Sold 1 1 1 2 5 Gross Profit 2 3 2 2 4 Operating Expenses Research and development 5 5 13 20 19 Selling, general and administrative 2 3 1 3 1 Others 27 24 31 29 32 Total Operating Expenses 34 32 45 52 51 Operating EBITDA -32 -29 -43 -50 -47 Other Income 24 26 24 23 8 EBITDA -8 -3 -19 -27 -39 Depreciation, Amortization, and Finance Costs 44 50 50 52 50 Profit / (Loss) Before Tax -52 -53 -69 -79 -89 Provision for taxes - - - - - Profit / (Loss) After Tax -52 -53 -69 -79 -89 Profit / (Loss) Attributable to Common Stockholders -52 -53 -69 -79 -89 Ola Electric Mobility - Consolidated Statement of Cash Flows (Unaudited) 17
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Description Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Cash Flows from Operating Activities Profit / (Loss) After Tax (PAT) -564 -870 -428 -418 -487 Adjustments to reconcile PAT to net cash used in operating activities: Depreciation and amortization 138 170 165 172 170 ESOPs -12 11 19 11 28 Finance costs, interest income and others, Net -16 46 45 57 52 Change in working capital -363 352 56 -22 -286 Net cash used in operating activities -817 -291 -143 -200 -523 Cash Flows from Investing Activities Capital expenditures -225 -334 -139 -150 -206 Free cash flows after capital expenditures -1,042 -625 -282 -350 -729 Interest received on deposits 58 72 53 93 39 Net cash generated/ (used in) from investing activities -167 -262 -86 -57 -167 Cash Flows from Financing Activities Proceeds from issue of equity shares 0 0 0 0 - Proceeds from/ (Repayment of) debt, Net 33 -133 -389 118 -106 Lease liabilities, finance costs and others, Net -120 -166 -144 -155 -116 Net cash generated/ (used in) from financing activities -87 -299 -533 -37 -222 Net (decrease)/ increase in cash -1,071 -852 -762 -294 -912 Cash at beginning of period 5,882 4,811 3,959 3,197 2,903 Cash at end of period 4,811 3,959 3,197 2,903 1,991 Photographs | Q3 FY26 Highlights Prarambh Event | Jan 2026 18
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4680 Test Ride Event | Nov 2025 19
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Ola Hyperservice 20
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Videos | Q3 FY26 Highlights Prarambh Recap 4680 Bharat Cell 22
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Ola श ि त Roadster X+ 9.1 kWh 23
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MANIFESTO If you're going to dream, make it an impossible one. And then, make it happen. If you're travelling new paths, be up for doing it alone. If you're proud of where you are from, make where you're from proud of you. If you're going to compete, start where everybody else finishes. If you're looking for a reaction, don't settle for anything less than-"woah!". If you're going to start something, start something new. The world does not need another thing just like the other thing. And if you're looking for the future, stop looking. Make it. 24
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Disclaimer This document, except for historical information, may contain certain forward-looking statements including those describing the Company’s strategies, strategic direction, objectives, future prospects, estimates etc. Forward-looking statements can be identi fied generally as those containing words such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of these expressions or negatives of these terms. These forward-looking statements are based on certain expectations, assumptions, anticipated developments and are affected by factors including but not limited to, risk and uncertainties regarding any changes in the laws, rules and regulations relating to any aspects of the Company’s business operations, general economic, market and business conditions, new or changed priorities of trade, signi ficant changes in political stability in India and globally, government regulations and taxation, litigation, competition among others over which the Company does not have any direct control. The Company cannot, therefore, guarantee that the forward-looking statements made herein shall be realized. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In addition to Financial information presented in accordance with Ind AS, we believe certain Non-GAAP measures are useful in evaluating our operating performance. We use these Non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Non-GAAP financial information, when taken collectively with financial measures prepared in accordance with Ind AS, provides an additional tool for investors to use in assessment of our ongoing operating results and trends because it provides consistency and comparability with past financial performance. 25