Ola Electric Q2 FY27: Supply Chain Ramp-Up is Key Constraint

Ola Electric Mobility Ltd's Q2 FY27 shareholder letter highlights a shift in focus from demand to supply chain ramp-up as the primary constraint. Demand is robust, with the EV macro environment strong. The company has transitioned its D2C stores to a dealer model, with most closing by December. Gross margin remained stable at 29.9%, while operating expenses decreased to ₹369 crore. The balance sheet has strengthened significantly due to a QIP and rights issue, reducing total borrowings from ₹3,132 crore in Dec 2024 to ₹1,819 crore in Sep 2026. The Auto business, now carrying minimal debt, is expected to generate free cash flow. In the Cell division, production is ramping up, with government support extended to CY2031. The dealer network has expanded to over 300 stores, with plans to reach 700 by March 2027. Wholesale orders are increasing, and channel inventory is at approximately 15 days.