Ola Electric expects Q1 FY27 revenue to cross Rs 500 cr, orders to nearly double

Electric two-wheeler maker Ola Electric on Wednesday gave guidance of a strong recovery in the first quarter of FY27, indicating that it expects orders to nearly double sequentially as service stabilisation, improved sales execution and demand recovery begin to reflect in operating performance.

The company expects Q1 FY27 consolidated revenue of Rs 500 to Rs 550 crore and orders in the range of 40,000 to 45,000 units, compared with 20,256 orders in Q4 FY26 and consolidated revenue of Rs 265 crore in the March quarter, Ola Electric said in its Q4 FY26 shareholder letter.

The guidance marks an important signal for Ola Electric after a low-volume Q4, during which the company focused on resetting fundamentals across service, product quality, operating costs, cash discipline and cell manufacturing.

While Q4 volumes remained muted, the company said the quarter showed early signs of the reset working, with gross margin expanding to 38.5 per cent, service stabilising, and sales recovery beginning.

A key driver of the Q1 outlook is the improvement in service operations, which had weighed on demand and brand trust through FY26.

Ola Electric said that the average service turnaround time reduced by 88 per cent, from around nine days in October 2025 to nearly one day in March 2026. Service backlog reduced from 14 days to six days, same-day closures improved to about 87 per cent, and parts pendency reduced by 69 per cent from October to April.

The improvement in service is already translating into sales momentum.

April registrations rose to 12,166 units, up 20 per cent month-on-month, even as the broader electric two-wheeler industry declined by more than 22 per cent, the company said.

The recovery was visible across states, led by momentum in Uttar Pradesh, Bihar and West Bengal, with gradual improvement also visible in Karnataka, Maharashtra and Tamil Nadu, it added.

The Q1 guidance also reflects the need to ramp production as demand improves. Ola said network-free inventory had reduced to only three to four days of sales, with order backlog building across key products.

The near-term focus will be on supplier ramp-up, factory throughput, faster order-to-delivery conversion and rebuilding appropriate inventory buffers.

Motorcycles are expected to add to the recovery. Roadster has emerged as Ola's second auto growth engine, with bikes contributing 15 per cent of April gross orders.

The company said it now has a 50 per cent share in the electric motorcycle segment, supported by products offering up to 9.1 kWh battery capacity and over 500 km certified range.

Ola's slightly more constructive outlook comes alongside a leaner cost base. The company said its consolidated 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 couple of quarters.

This gives the company more operating leverage as volumes recover.

The company has, however, cautioned that FY27 Q1 and Q2 margins may moderate from FY26 Q4 levels due to commodity inflation and pricing investments to accelerate growth.

Yet, vertical integration, margin leadership and its own-cell roadmap provide room to remain aggressive on customer value while maintaining strong unit economics, it said.

For Ola Electric, the Q1 FY27 outlook is therefore less about a one-quarter rebound and more about whether the FY26 reset can now translate into sustained volume recovery. If the company delivers on its 40,000-45,000 unit guidance, it would mark a sharp sequential improvement and offer early validation of its service-led recovery strategy.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)