“Demand is ahead of supply, and we can sell every vehicle we produce,” Aggarwal said in a letter to shareholders, shared in a post on X.
The bottleneck is not Ola’s own plant, which Aggarwal said in his post already has high installed capacity, but its suppliers. About 5,000 vehicles with paid orders in September were delayed by a week into October because chargers were unavailable.
Aggarwal, in the Q2 FY27 earnings call, reiterated that supplier dependencies are being fixed as partners scale up. Ola expects to produce about 25,000 vehicles in December and intends to clear its paid-order backlog quickly.
The company also shared that it has appointed 255 dealer partners operating 319 stores as of November 8, and plans about 450 stores by December and 700 by March 2027. It stopped taking orders at its own stores on November 1, and most will close by December.
PTI reported on September 4 that the first dealer-operated stores had gone live in seven states.
Aggarwal had also posted on X about Ola Electric’s first Dealers Day at its factories in October.
Going from no dealer stores to over 300 in barely two months is a fast build-out for a company that launched its first scooter through a fully company-owned retail network five years ago. Aggarwal said dealers have shown very strong enthusiasm and momentum, and they pay for their vehicles when they order. Channel inventory is about 15 days, and under a week in the earliest stores, and market share in markets where dealers opened early is now well above pre-transition levels, the letter said.
The quarter’s numbers show how much of the turnaround is still ahead.
Consolidated net loss narrowed to Rs 362 crore from Rs 418 crore a year earlier, but was wider than the Rs 336 crore loss in the June quarter.
Revenue was Rs 419 crore against Rs 690 crore a year ago and Rs 455 crore in the previous quarter. Gross margin was 29.6 per cent, and Ola said it will dip a little over the next two quarters because of the dealer rollout, even as operating margin improves.
Sharing more on debt, the company said Auto borrowings are down to Rs 337 crore from Rs 2,422 crore in December 2024, while total borrowings fell to Rs 1,819 crore from Rs 3,132 crore.
With dealers paying for vehicles when they order and holding the stock, Ola no longer needs to fund inventory in its own stores, and the company expects its Auto business to generate free cash flow in the near term. Auto’s free cash flow was still negative Rs 134 crore in the quarter, meaning it spent much more than it generated after capital expenditure.
In Cells, Ola said it commissioned 6 GWh of capacity on time and that the government has extended its ACC PLI scheme to CY2031. It is now ramping up the gigafactory and putting its cells into its own vehicles at a larger scale.
Aggarwal said he sees both EVs and cells as large industries of the future and strong engines of growth for Ola. With debt down and over 300 dealer stores in place, the infrastructure for that next stage is largely ready. What remains is for suppliers to keep pace.