Ola Electric is fixing its issues, but road to better volumes is stretched

AI tools are being deployed to accelerate fault detection and repairs. Service backlog has reduced from around 14 days to 7–8 days, with about 80% of service tickets now closed the same day.

Cost reset

Ola is also cutting costs. Consolidated quarterly operating expenses, including leases, have fallen from a peak of ₹840 crore to ₹484 crore. The company expects steady-state quarterly operating expenses of ₹250–300 crore over the next couple of quarters.

With this leaner structure, management estimates Ebitda break-even at around 15,000 vehicles per month. Given the largely fixed cost base, even a modest recovery in volumes could meaningfully improve margins.

The company is further strengthening vertical integration, with about 6 GWh of cell manufacturing capacity expected by March. Over time, this should help lower battery costs and improve unit economics.

All said, Ola remains a high-risk bet for long-term investors, with execution now critical. According to calculations by Emkay Research, Ola has turned net debt of ₹670 crore as of 9MFY26, compared with net cash of ₹160 crore in H1FY26.

While management’s steps on service quality and cost rationalization appear directionally correct, investor confidence may hinge on clear evidence of sustained volume recovery and a sharp reduction in losses. Until then, caution is warranted.