Before we start, Deepak, I just want to say welcome, everybody. An important quarter for us.

I hope everybody has had the chance to read our shareholders' letter. A bunch of nuances which we will cover through the Q&A, and definitely something we want to make sure we highlight some of the important turnarounds that the company has now gone through over the last couple of quarters.

Deepak, you make your remarks and then I'll add wherever I want to. Yeah.

Thank you so much, Bhavish. Good evening, everyone, and thank you for joining us.

FY26 was a year in which volumes were lower than where we wanted to be, but it was also a year in which the fundamentals of Ola Electric became materially stronger. We exited the year with industry-leading gross margins at 38.5%, a much lower cost base, sharply improved execution metrics, better product quality, our first operating cash flow positive quarter, and a Gigafactory which is now entering a scale-up.

This progress comes at an important moment for India. The next few years will be defined by two structural shifts happening together: mobility moving from ICE to EV, and energy moving from imported fuels to locally made batteries.

Ola is building across both shifts: electric mobility, cell manufacturing, and energy storage on an integrated platform. Let me first start with the margins.

In Q4 FY26, consolidated gross margins reached 38.5%, up from 34.3% in Q3 and 13.7% in Q4 similar quarter last year. Excluding PLI, gross margins was 33.5%.

This is now an industry-leading margin profile ahead of most two-wheelers OEMs, including ICE incumbents. It reflects the structural advantages we have built over last few years: vertical integration, Gen 3 maturity, pricing architecture, downstream control, and increasing integration of our own cells.

On this point, Deepak, I'll just pause you. I think gross margins has been definitely one of the things we've been highlighting quarter-on-quarter for the last many quarters.

This actually shows the success of our vertically integrated approach on both the manufacturing supply chain as well as on the front end. Many people frequently ask us about the sustainability of these gross margins.

One of the potential misconceptions is that this is because of incentives. You can see without PLI also, gross margins are fairly high.

We believe very strongly that our gross margins will remain a very strong structural advantage for us going into the future as we rebound our volumes. We're actually now even higher, much higher than ICE industry gross margins.

For EV competitors to catch up with us, it's going to take a lot of investments into technology and manufacturing, which is actually what has led to this meaningful strength. Over the longer term also, we can actually expect gross margins to incrementally keep going up.

Obviously in the short term, there will be commodity pressures as well as some of this gross margin in the last month or two we've invested into aggressive growth. Still, gross margins will remain fairly healthy for us in the short term also.

In the long term, we can actually expect even more incrementally higher gross margins as we go along.

Thank you, Bhavish. For FY26, consolidated revenue stood at ₹2,253 crores with 173,794 deliveries, and consolidated gross margin improved to 30.6%.

While volumes were impacted through the year, the improvement in margins shows the underlying strength of our product economics and our operating model. I would now actually highlight the cash flows, this is the first time we actually have a positive cash flow.

I'll just talk about it, and then I'll ask Bhavish to obviously add his comments. Q4 was the first operating cash flow positive quarter.

Consolidated CFO was ₹91 crores, supported by strong gross margins, PLI inflows, lower OPEX, and tighter working capital discipline. The auto business delivered ₹213 crores of CFO and ₹173 crores of free cash flow in Q4.

This is an important milestone as Ola moves from a heavy build-out phase to a disciplined scale-up.

No, I think, Deepak, you covered. I think the only point I will accentuate here is that Q4 revenues were low because deliveries were low, but our gross margin leadership as well as our OPEX reduction, both have actually now hit its stride.

On OPEX, you can see there's a chart in the first few pages that from same quarter last year to this quarter, our OPEX is actually half. That includes all OPEX including store lease rentals.

We are further saying that in the next couple of quarters, we'll actually get our OPEX down to about ₹100-₹120 crores a month further down, while business rebounds. The good thing about our business is that because we are so vertically integrated on both the back end and the front end, almost 90%-plus of our OPEX is actually fixed.

That means operating leverage is very high. As we have reduced our operating costs through efficiencies, and as now we are rebounding sales, a lot of it is translating into net margin for us.

This is specifically seen in the auto business. If you see segment financials, our auto business, like Deepak said, and we report different cash flows for both the segments because both segments are in very different stages of evolution.

Auto is now very close to free cash flow generation. As soon as we get our volumes a little bit higher in this rebound period, we will generate meaningful, sustained free cash flow.

Cell is still in investment phase, but that also, through this financial year, will get into sustained revenue growth and, over time, cash flow generation. If you see annually also, compare our auto segment FY25 versus FY26 on page 15, you can see how our CFO has actually meaningfully improved over this period.

For our auto business, there is no more CAPEX needed as we scale up. CFO to free cash flow conversion will also be fairly high.

I also want to bring in here a little bit of the macro context. While so far we've covered our internal financials, but what we are also seeing in the market now is demand for EVs has actually gone up meaningfully in the last few weeks.

While other competitors will need to do more CAPEX as well as new product rollouts, we have our capacity on both automotive and Gigafactory covered because all the CAPEX is now behind us, we can easily scale up to a million units a year. We are focused, and somewhere in the note, you also find that we are actually right now, not on 31st March, but right now in the current May period running at a very low inventory level in our network.

Because demand itni badh gayi hai that people are buying whatever they can find in the network from us. Our free inventory days is actually down to 3-4 days.

We have a order backlog now. The company is highly focused on ramping up the supply chain quickly enough so that we can fulfill these orders, the backlog also.

I actually expect, as we improve our delivery timelines, volumes will go up another 10%-20% in the near term. Very very good signals from the demand growth in the market for EVs, and we are well positioned to capture it without any incremental capital required.

Thank you, Bhavish. The third highlight, which Bhavish also touched upon is on the OPEX cost reset.

Consolidated OPEX, including lease expenses, have meaningfully reduced from ₹844 crores in Q4 24-25, which is last year, to 420- ₹428 crores during this Q4 25-26. This reflects network rationalization, tighter sales and service cost, lower fixed overheads, and stronger operating governance.

We expect OPEX to move towards approximately ₹350 crores, we actually spoke about in our last shareholders' letter also, over the next couple of quarters as the full benefit of '26 actions flow through.

A couple of points on this also as on the rebound, I would like to add for everybody. If you see on page 6 and page 7, you can see how, as we have improved service, the first chart on page 6 of service backlogs as they have gone down, our sales has rebounded almost in a V-shaped recovery.

The chart below that shows you week-on-week how our registration numbers are ramping up. On page 7, you see the recovery for us has been broad-based.

We are very strong in the North and East, which is actually a growing EV market, and we are gaining back our position in the South and West. The recovery in market share is fairly broad-based.

Back to you, Deepak.

Yeah. This reset creates a stronger operating leverage.

The core auto CAPEX is already in place for up to 1 million, Bhavish just spoke about it, for the auto business of annual capacity, and Giga factory Phase 1 infrastructure is in place for 6 gigawatt scale-up, 6 gigawatt hour scale-up. Together, the asset base can support approximately ₹15,000 to ₹20,000 crores of annual revenue scale across auto and cell without needing for meaningful incremental CAPEX.

With the reset OPEX base and current gross margin structure, adjusted operating EBITDA break-even is achievable at around 20,000 to 25,000 units per month, subject to pricing mix and commodity conditions.

I want to just underline this. I know many of people on the Street, investors have asked us the question on the break-even.

If you do the rough math, and all the financials here that we talk about right now are consolidated. In the past, segment financials have created some level of confusion.

Today, we're just giving the communication on a consolidated financials break-even. If you see our gross margins of around 35%-plus, 38% in this quarter, ARPU or average ASP is about ₹1.4 lakhs or so, thereabouts, ₹50,000 gross profit per vehicle, and our consol OPEX cost, including lease rentals, of about ₹300-₹350 crores in the next quarter or so.

The adjusted EBITDA break-even consol comes to about 20,000 to 25,000 units a month. In our rebound already, we are seeing us get there.

You saw March, April registration numbers. May also, I'm sure most of you are tracking.

Another thing we've added in this sheet for everybody now is we're also going to show deliveries as well as registrations as well as orders. Because the auto industry, the Street tracks wholesale and retail typically.

For us, those are very different. We don't have a dealer model, there's no wholesale, retail concept.

Registrations is what you guys consider as retail. Deliveries is what we book as revenue.

Orders is what we get when the customer comes into the store and pays. Because of our unique D2C business model, these three metrics also we will publish for future clarity.

Another point I want to add here is on page 8, you see how, while this period had service challenges and we were focused on solving them, brand has actually held well. Because our brand has a lot of fundamental strength from the quality and the performance of our product and the proposition of price-value equation of our product, which is unparalleled in the EV two-wheeler industry.

You can see here a very reputed third-party survey on brand strength. Our brand recall is industry-leading, and our NPS is also above industry averages.

Specifically, NPS where there are no service delays is actually very, very healthy. We remain very confident about customer thinking and the customer sentiment on our business.

That's why we're seeing volumes ramp up quickly as we have now largely solved service and as we are now ramping up our manufacturing and back end, the demand is growing along with it. We also have put there on page 9 a chart of Google searches.

It's just Google Trends, that's what it's in. You can see Ola is by far the highest-searched brand in the EV space in India.

All these are advantages, and our business model does not have any spends on marketing, etc., so that also benefits when we think of operating costs.

Thank you. Execution improvement, which Bhavish just talked about, I'll just add some more flavor to that.

Execution improved meaningfully through the year. Product quality is improving with Gen 3 with warranty cost is 70% lower than Gen 2.

Service metrics have also improved sharply, with service TAT down 88%, same-day closures at approximately 87%, and part dependency down 69%. Execution improved, sales has started responding.

April registrations were up 20% month-on-month, while the broader e-two-wheeler industry declined by more than 22%.

On warranty, Deepak, I would like to highlight for everybody on the call here, on page 6 of the shareholders' letter, in the second paragraph, you can see how year-on-year our warranty costs have actually come down such in a very material way. In FY25, we had a ₹500-plus crore of warranty cost.

In FY26, it's only ₹60 crores—₹59 crores to be accurate. What we've been sharing with you guys on our Gen 3 platform being by far the industry leader, that is validated by our warranty costs in FY26.

That also kind of tells you that some of the service challenges that we had were largely linked to service network operations, which also in the KPIs again you can see in that we have meaningfully improved. Looking ahead, we feel very optimistic about our sales as well as customer sentiment.

Looking ahead to Q1 '27, we expect 40,000 to 45,000 orders and consolidated revenue of ₹500 to ₹550 crores, nearly double of the Q4 level. As volumes recover, we expect the auto business to move towards adjusted operating EBITDA and cash flow positivity through FY27.

There are a lot of questions on the bike, Bhavish,

and so

I wanted to make sure that we actually address this as part of our narration.

Let me give the headline here, Deepak. We launched the bike about a year ago, and we've been very consistent about our communication in the earnings calls that we are scaling it step by step.

Now we are very very happy to say, actually, that we are seeing good traction both on the EV bike industry. Bike industry itself in the last six months or so has more than tripled, off a very small base right now, but the trend is very aggressively growing.

Think of it as where EV scooters were five years ago before Ola really entered the market in a big way and scaled it up. Bikes are also there, and our market share in bikes is 50%-plus.

Bikes are a little different than scooters in terms of product. The customer expects more range in the bikes, and that's why our bike portfolio has slightly higher range than scooters for the customers.

Specifically at the top end, actually only because of our own Bharat cell, the 4680 cell, we can offer almost a 500-kilometer certified range product. There's very strong interest in the bike in customers.

Again, we are constrained not by demand there, but by supply. We are seeing significant uptick in the Roadster product in the northern belt of India, which is the heartland of the bike market of India.

I actually feel now, especially with the petrol prices in the macro, bike EV moment is here through the next couple of quarters, and we are fully ready to take best advantage of that.

Roadster is becoming our second auto growth engine. Motorcycles are India's largest two-wheeler category, and EV penetration remains very low.

Ola now has 50% market share in electric motorcycles, and bikes contributed 15% of April gross orders. With products going up to 9.1 kilowatt hour battery capacity and 500-plus kilometer certified range, Roadster is built around the core motorcycle customer needs of range, performance, and reliability.

The Gigafactory is now entering the scale phase. We currently have 2.5 gigawatt hour operational capacity.

Installation up to 6 gigawatt hour is largely complete, with commercialization expected to be completed by the end of this quarter.

I think, Deepak, before we go into operational updates,

yahan

pe macro commentary bhi bahut important hai. Kyunki the way the country's energy security requirements and narrative is shaping up, Ola Electric is the only company which is actually straddling both of the critical domains: one is EVs and one is batteries.

Now it's very clear from both customer sentiment as well as government sentiment that EV ko encourage karna hai. Today there was some media articles that for buses, etc., there will be incentives, etc.

EV encouragement is from government as well as consumer side going up. Also, along with EV growth, two other things are happening.

One is the clarity in the policy stakeholders is very clear that we will have to very quickly accelerate domestication of the battery supply chain. Your company there is the best positioned to do that.

Then in the power grid itself, it's very clear that our solar rollout has kind of maxed out unless we start deploying batteries along with it. That's why you can see already some announcement on floating solar along with batteries.

Just like ALMM in solar, there will be ALBM, ALCM. There will be hopefully some extension in the ACC PLI.

There will be domestic procurement for BESS deployments mandates coming soon. Our battery business is actually right in the center of that potential for growth.

Now in our battery business, we have built our own domestic IP, and that's actually the reason why we have been able to create and productionize and scale up the Gigafactory and get commercially viable yields and prices. We have 6 gigawatt hour already installed—six gigawatt hour.

2.5 was already done. The remaining 3.5 is getting done this quarter.

It was supposed to be done a month back, but due to the Iran war, some containers got delayed. Since getting done in June.

We are actually going to be expanding that 6 to 20 gigawatt hour by next year, but only by raising capital separately at the cell entity, which also we have a lot of inbound interest from private equity players given the leadership of this asset that we have created. I just want to underline this important point on the macro side that our company is very well positioned to really leverage the tide and really create this energy security stack for our country in a meaningful way and monetize it.

There is some commentary here on our technology. We will probably skip that in our commentary.

Deepak gave you quick operating metrics. You can find that in page 12 and 13 also.

Now we are focused on ramping up production to get revenue in the Gigafactory. There are three engines of revenue built in this.

If you go to page 13, you will see the chart there. We have our cells, the 46 series is already out there.

We're also working on a prismatic cell, which will be out soon. We haven't yet released details of that.

There are three revenue engines now. First is mobility, which is EVs.

Obviously, our captive demand will eat up about 1.5 to 2 gigawatt hour by the end of this financial year. We're also now in conversations with external companies, Indian and global, who want to buy our own cells given that they are world-class and industry-leading specs.

The second demand engine, which is already built, is Shakti. Shakti we had launched last quarter, and we have already delivered some to customers.

We are constrained by supply of our cells because we're prioritizing our own auto business moving to our cells in general over Shakti production. As Gigafactory ramps up through the next few months, Shakti will also meaningfully ramp up.

There we have very strong demand from both retail as well as B2B customers: telecom towers, petrol stations, dark stores, other organized retail chains. Everybody today has diesel generators and lead-acid batteries, and all of them want to replace that with lithium.

The third big pillar which we are now creating is the grid storage. This product is called Mahashakti, which is bigger Shakti, more energy.

Mahashakti, it will be built on our prismatic LFP platform. We are right now in product development.

We have had conversations with many platforms there. We have shared specs.

People are excited about our product there, and more details will follow through the next couple of quarters.

Okay. I just wanted to emphasize that around 15% of the orders are already on our product using Bharat cells.

We plan to transition the full vehicle portfolio to our own cells by September 2026.

I think I would underline that, Deepak. This is a meaningful transition.

Already 15% on our own 4680 cells in the market, very good feedback from customers. By end of next quarter, we plan to transition everything.

It's a meaningful ramp-up of our Gigafactory happening as we speak.

To summarize, Ola is positioned across the two important pillars of India's energy future: electric mobility and batteries. Vehicles create captive demand for the Gigafactory, cells improve our vehicles through range, cost, and supply chain control, and the same platform opens up energy storage through Shakti and Mahashakti.

Our FY26-27 priorities are clear: recover volumes, hold margin leadership, reduce OPEX,

ramp up the Gigafactory, improve auto cash generation, and scale Shakti and Mahashakti. Thank you so much.

Now I will open the floor for question and answers to the participants.

Hello, team. Am I audible?

Thank you for giving me the opportunity to ask the question. Many congratulations to have a good numbers in terms of margins.

In last quarter, you told that in quarter four, we are going to have a good revenue, but still it is not reflecting. Also, your team has given the data at the end of March, and you have a very good number of sales.

Why it is not reflecting in terms of the numbers? That is my question.

Okay. Meet, I don't know what exactly you're referring to, but dekho, our registrations are public data, right?

March mein hamara 10,000 hua tha, April mein 12,000 hua hai, and May is trending towards 14,000 to 15,000. We are growing registrations.

Our orders are growing ahead of registrations, but like I said, we have a production backlog now. Some of that will come through in this quarter in terms of registrations.

In terms of revenue, see, Q4 was a lower revenue because Q4 was also, like we said, a quarter where we focused a lot on our operations to fix the operations and then scale again, both on cost as well as customer experience. We started scaling volumes again in the middle of March onwards.

The good thing about our business is volumes to hamara aapko daily and weekly and monthly dikhta hai publicly in terms of registrations. The cost and the gross margin improvement is what is once a quarter you guys are able to track over a period of time.

What I can say now is our volume forecast for Q1 we have given in this is 40,000 to 45,000. These are orders.

Registrations might be a little up or down. Hopefully, it'll be in the same range.

Orders we're seeing good, healthy pull in in terms of demand.

Thank you, Bhavish sir. With the regards of follow-up question, just I want to know that are we still focusing on electric two-wheeler and how you are thinking to main focus like for the new product of Shakti and that kind of UPS systems or two-wheeler will be still remain in the focus for the business?

Yeah.

Our company has two business segments, right? Two-wheeler is the core business because that is generates 100% revenue today.

Our Gigafactory was also always built with the vision of building cells and ESS batteries, right? In addition to storage solutions, right?

The Shakti product is already built. It has actually a lot of carryover and platform from the two-wheeler platform.

In that sense, very low cost of CAPEX and R&D to build the Shakti product. We will be ramping that up over the next couple of quarters.

Like I said, our priority is to make our own cells go into our automotive business first, and then as the Gigafactory ramp becomes beyond our automotive requirement, then we start scaling up Shakti next. Demand for Shakti also is very high given that battery storage is a very, very fast-growing theme.

Okay. Thank you, Bhavish sir.

Last time aapne bataya tha ki aapko aapke business pe bharosa hai, to hume bhi aapke business pe utna hi bharosa hai. Thank you so much.

Thank you, Meet

bhai. Humne shareholders' letter mein sabse upar ek Gita ka shlok dala hai.

Aap mein se kuch logon ne woh padha hoga, uska matlab yehi hai ki hume apni apni galtiyan bhi khud sudharni hain aur apna future bhi khud banana hai. [laughter] Definitely.

All the best, sir, to you. Thank you so much.

Thank you.

Hi, sir. Good evening.

I hope you can hear me.

Hi, Arvind. Hi,

Bhavish. Good evening.

Thanks for taking my question. On the demand front, since you said the break-even is around 20-odd thousand a month, what is a bridge from the current levels to that?

Is it driven by motorcycles, or driven more by service? What would be the key drivers for the volumes?

That would be the first question, sir.

Arvind, firstly, we're still in our rebound phase in terms of volumes, because volumes in Q4 were not our steady-state volumes, right? It was impacted by our internal operations.

You've seen the recovery since that. Now it's the third month of recovery.

We are actually not just recovering, we are growing month-on-month on top of that rebound, right? I believe another couple of months, most likely June, July also, we will see a continuing rebound of our volumes.

The rebound itself should get us to about 17,000-18,000 units a month, right? Now that'll be a mix of both scooter and bike.

Bike is about 15% of our volumes now. Beyond that, like I said, now we're running a production backlog.

The factory anyways has capacity, we don't need to do CAPEX. As we're ramping up our suppliers, as our suppliers are getting production scaling up again for us, demand is also ramping up.

I do expect just better stability on service and improved inventory availability will lead us to closer to that 20,000-22,000 number over the course of next quarter.

Got it. Thank you.

If you may just give us some more granularity in terms of your own cells versus what your import, if you can share even directionally what is the cost advantage that you're getting right now, and would it increase further when you move to 6 gigawatt hours?

Good question, Arvind. Actually, if all of you know that lithium has entered an upcycle in the industry, our advantage of our own cells is actually improved.

Even at this low volume production where we are today, it is cheaper for us to make our own cell versus buy a cell from outside, as far as BOM cost is concerned. Obviously, the overheads on the Gigafactory right now with more scale will get factored in, but on just pure BOM cost alone, it is cheaper for us to build versus import.

That's at these low volumes. I do expect, as we scale up our Gigafactory towards the 6 gigawatt hour over the course of this year, we will get a 10% to 15% advantage on building our own cell, including the operational overheads of the Gigafactory [unclear].

Right? The advantages of Making in India are actually coming out to be very true already in our business model.

Got it. Thank you so much for answering the questions.

That's all from my side. Thanks so much.

The opportunity [unclear] sir. Sir, you told now you will be scaling up to 6 gigawatt hour.

Where in DC there is a [unclear] talk about the

Venkatesh, we didn't hear you clearly, it got garbled up. Can you please repeat your question?

Or if you're not clear, you can even type it in to the chat box. Oh, there's no chat box.

You can please repeat your question.

Yeah. Sir, what I said is when you, sir, now battery segment, my Yeah, when you

Hi. Congratulations on the margin expansion, Bhavish.

My question is twofold. One, is the battery capacity currently that you have and currently that is operational, is it now 100% being consumed in the scooter segment itself, and you do not have anything for Shakti?

That was my first question. Second is about marketing and advertising.

Any specific reason as to you do not advertise big time in a print media? Thanks.

These are the two questions.

Okay. Amod, I'll answer the second one first.

See, as a philosophy, we believe that our product speaks for itself, and all along in our journey, we have been able to succeed with that philosophy. As a result, our costs are also controlled.

It's not like we have anything against print media, we don't even do TV, actually. You will not see us sponsor any IPL team or any hoardings or anything.

Because our product is so far ahead of competitor products, it delivers great word of mouth. Now that doesn't mean we will not do advertising.

We might do some advertising in the coming months as we see opportunity for educating a larger mass of customers on the benefits of EV, as well as about how our brand has turned around from some service challenges in the past. We might do something.

As of now, we don't see the need to do anything immediately. On your first question, see, the 6 gigawatt hour, out of this, roughly rule of thumb, you can assume 3 is already commissioned, 3 is getting commissioned by end of next month.

Now the 3 that is commissioned already is in a ramp-up phase. First you have to install the equipment, then you commission the equipment, and then you ramp up with improving yields.

The gigawatt hour that we have already commissioned is in a ramp-up phase with good yields. As we are ramping up, and we also have to ramp up supply chains, people who send us the cathode powder, anode powder, electrolyte in India, all of that.

As our whole supply chain is ramping up, we are increasing our productivity and our output of the Gigafactory. By end of next quarter, which is September, we expect our Gigafactory to be producing about 2-plus gigawatt hours already.

For the whole year, the allocation of capacity is 2 gigawatt hour to our in-house business, maybe 1-plus gigawatt hour to external auto sales, and the remaining is focused on Shakti and Mahashakti.

Thanks for that. One last quick question.

In terms of monetizing, if you may want to call it that way, the cell business, there were media articles in between that about ₹2,000 crore monetization and money should flow into the company and so on. I understand you cannot speak much about it unless you make a public disclosure on that, but are things moving on that direction?

Amod, I can't share too much, but we have a lot of interest from people on that front. Like I said, our ambition in our cell business is to be the largest in the country.

Today we are the first and the largest,

but

that space is going to expand fast and we will be absolutely focused on leading that space, being the largest in capacity and revenue. For that, we will have to expand beyond 6 gigawatt hour, but we will do that when we raise capital in the subsidiary, and that will be in due course.

We will let you know.

Great, Bhavish. Thanks a lot.

Congrats on the increasing delivery numbers. Best of luck.

Thank you.

Hi, Bhavish. Two quick questions from me, okay?

The first question is in regards to the ASP calculation that you have given, okay? What you've mentioned is that there's a one-time change in the revenue

recognition

policy. Could you maybe elaborate on that?

Yeah. Apurva, what we did was we sell some let's call it care packages or extended warranty packages, which is let's say three-year product, five-year product.

We were recognizing the revenue up front, this time with our auditors we decided that we will not recognize it up front. That's about a ₹20-₹30 crore hit in this quarter.

Is that correct, Deepak?

Yes. Yes, Bhavish.

I'm not the financial expert, but this is what it is. Hence you see the ASP has come down, but actually that revenue will come every quarter, right?

Because we have already done the sale.

Okay. This was more of a one-time thing, is that correct?

It'll be a one-time correction, every quarter now you will see this revised approach.

Would that be the case for the earlier quarters as well? Would the numbers be revised or would that not be the case?

No,

whatever was the impact, we already baked in already in these numbers. Hence, there is no one-time effect which you will see.

It will be already baked in the numbers. Whatever numbers we publish will continue with the same [percent?]

.

Okay. Coming to my second question, okay, it's regarding the Gigafactory.

From what your shareholders' report told, I understand that you want to ramp it up to 20 gigawatt hours. I want to understand two things, okay?

First is I want to understand the rationale behind going for a ramp-up pretty quickly. The second question is if you could maybe shed more light on the order pipeline or something, I think that is all from my end.

Sure, Apurva. Like we said in the report, in the letter also, we will not be ramping up beyond 6 right now from a capital allocation perspective, right?

We will first grow into the 6 gigawatt hour capacity. The industry demand in India is growing faster.

Just to be able to lead the industry, we will expand capacity, especially around the prismatic cell capacity. Today our capacity is the cylindrical cell.

We will expand capacities into the prismatic cell capacity, but only when we raise capital at a subsidiary level. That is in our plans for this financial year.

Hi, Vipul, good to see you.

Hi, Bhavish. Thank you for taking my question.

Particularly three questions. First is you talked about lower CAPEX.

Now how should we see the total CAPEX from next two to three years' perspective? We see that you already have 1 million capacity in vehicle and I guess you will be having just couple of quarters remaining for the CAPEX in battery plant.

How should we see your CAPEX in next two to three years?

Good question. Vipul, in auto, on an annual basis, you should expect very incremental CAPEX, maybe ₹50-odd crores, that's about it.

It's just maintenance CAPEX because we have very large capacity already built out. That means the conversion of EBITDA to free cash flow will be fairly high.

On cell business also, like I said, we have done all the CAPEX for 6 gigawatt hour. Payouts are happening in this current Q1 and a little bit in Q2.

Beyond that, you will not see any more CAPEX till we get some capital into the cell company separately. From that sense, actually, the business's CAPEX cycle is behind it, and now focus is on scaling up utilization and monetization.

If it is possible to quantify, what kind of outflow we are looking in FY27, and what kind of maintenance CAPEX we are looking in FY28, if possible, if you can quantify?

Vipul, again, rule of thumb bataunga main, maintenance CAPEX will be sub-₹50 crores annually, right? I'll just add one more nuance.

We do have some R&D which we capitalize, about 20%-30% of our overall R&D expenses, that will keep coming in. In terms of PPE CAPEX, that will be below ₹50 crores a year.

Okay. My next question was on R&D only.

You are largely done with your product development as well, and your Gen 3 is also doing pretty well. How should we see the R&D expense as well in coming years?

See, Vipul, we're a technology company, and we've always maintained that our competitive advantage comes from both our manufacturing depth of vertical integration, as well as our technology depth of owning all key technologies in-house. You can see how that has played out in terms of gross margin, product proposition, all of that stuff.

We will continue to invest in R&D across both auto as well as cell business. Right now obviously as a percentage of revenue it is high because revenue was subdued in Q4, but generally it should be in the mid single digits of revenue going ahead as revenue ramps up.

Makes sense. Thank you.

My second question is on the cash position right now. Basically, since you talked about lower CAPEX right now and your OPEX is also pretty low.

Are we looking at any major cash burn in FY27, or we should be likely maybe at par? How should we look at that part of the business?

Yeah. See, on 31st March, we had about ₹1,550-₹1,600 crores of gross cash and about ₹2,500 crores of debt.

We had a net debt of about ₹950-odd crores. There will be about ₹300 to ₹500 crores of operating cash flow burn over the course of this year as the volumes go up.

It could be lower if volumes rise faster. Generally, operating cash burn, like I said, after 20,000-25,000 orders a month, will be positive.

We'll be making operating cash flow. On free cash flow, just CAPEX is minimal going forward.

We do have some debt servicing and debt repayments coming up. Through this year, we'll have about ₹400-plus crores of debt repayments, and we might also choose to accelerate some because right now our cost of debt is slightly higher.

Thank you. That was a pretty detailed answer.

Just last one on qualitative aspect of the business. What we have seen in last three years, when you started the own new stores, the store experience was very good.

Eventually deteriorated. What we are seeing right now, it has improved, but again not to the extent what we have seen two years back.

Maybe if you can talk a bit on your store strategies, do you plan to get new dealers, or maybe it will be your own company-driven? How do you plan to improve the whole experience for the customers?

Vipul, our experience has improved from let's say two quarters or one quarter ago, and we expect in the next one or two quarters it will be ahead of industry standards in all key metrics that matter, be it service turnaround time, be it the quality of the people we have there, the sales process, etc. We are focused on improving experience.

We've spent a lot of time building the right back-end processes to make front-end experience better. We don't plan to have any dealerships in our auto business.

We believe our strategy is correct. We had some execution slip-ups through last year, but now the company has meaningfully overcome them.

That said, there is still some work to be done, like you correctly pointed out, and the good thing is our volumes are ramping up in parallel. As we work through all the improvements in the front end of the business over the next quarter or two, further you will see customer sentiment and sales ramp up.

Thank you for that answer. That's all from my side.

Thank you.

Hi, guys. Thank you for taking my question, and very congratulations on the solid results you guys have.

I just wanted to understand the research and development part of Ola's battery business. I read somewhere that you guys are focusing on solid-state batteries and sodium-ion batteries.

How are we progressing on these long-term initiatives, I would say?

Yes, very very good question. I had never thought I'll be asked a technical question in an investors' meet.

Actually, you read it in our letter itself. On page 12, the cell technology roadmap shows you that our roadmap ladders into on the performance side, solid-state, and on the cost side, sodium.

We have these technologies already at a lab scale working. We are not focused on spending a lot of capital on getting them manufacturing-ready right now.

Our focus is to ramp up our 46 series NMC. We have brought in our LFP cell also.

Through the next quarter, it'll start ramping up in our factory. We are ready, as the industry matures for solid-state and sodium, we will be bringing those products to market also.

Sorry, is there a follow-up question or does that answer your question?

Hi, Bhavish. Thank you for taking my question.

I had a couple of questions. One was relating to the service issues.

Of many videos that I've watched online, the service issue seems to be with part unavailability. I just wanted to understand that why is that happening, even if it is a Gen 1 or Gen 2 scooter, how is it that parts are unavailable?

You caught it well, Jaineel. See, firstly, some of the videos on social obviously are old videos, something people recirculating online due to competitive pressures.

You're right, one of the challenges we did face was part supply chain. See, as we had ramped up our networks, in a dealer model, the dealer buys the parts and the OEM distributes through traditional distributor chains.

Now we don't do that. We send our parts directly to our service center.

Earlier, we were not stocking any parts in our service center, and that led to even for a brake pad replacement, the guy had to wait 10 days. Our parts procurement from our suppliers was also after a part requirement came, actually led to 20-30 day of fulfillment timelines.

Now we've streamlined a lot of that. Now parts are stocked in the service center as well as part procurement is done basis forecasts.

All of this is just execution fixes that we have done, and now parts have improved. There's still some work to be done.

Some parts we still have to because, like I said, we're still ramping up our supply chain. Some parts are common between our production and service, we are prioritizing production, but we're ramping up the supply chain so that we can fulfill part requirements better in service also.

Okay. Thanks.

One question regarding BESS, why have we selected NMC to go into BESS when we have LFP, and also mostly around the world, it is only been LFP? Anyone getting LFP cells from China and putting into a BESS product in India would start off much cheaper than our Shakti product.

Why would Jainil,

we haven't selected NMC. The Shakti product will move to LFP once our LFP product comes out next quarter.

We had started with NMC for our auto business, and that's why, even now we have decided to ramp up Shakti slower because we're focusing our NMC 46 series into our auto business. Through next quarter, but we wanted to give be in the market with Shakti, so many many customers actually are okay with paying the price of Shakti with the NMC product today, we are starting to take that business.

By next quarter, Shakti will have LFP so that we can ramp it up faster.

Okay. My last question, I've noticed that there's been a slip-up in terms of some products moving into future quarters or maybe even future years, like the Gig product and so

See, what we did, Jainil, yeah, I understood your question. See, we decided, and I think we made a public statement of this also, maybe you missed that, that we have a product roadmap in our shareholders' letter also you can see it somewhere in the pages, but we decided we will not launch new products till our volumes get back up, because we wanted to be more disciplined on new capital allocation for new products.

Now as we have stabilized our front-end operations, as volumes are ramping up again, we will actually go back to some new product launches over the course of this year.

Okay. Just one last comment.

I've Jainil, I think in the interest of time, we will

No, no, it's a positive comment, I just wanted to say that there was a video from some gareeb scientist or some Twitter handles in terms of the technology that goes into your batteries, and I was very pleasantly surprised at the amount of work that you all have done,

but

just would like to say that I think you'll need to even show the investors maybe in terms of maybe some kind of a analyst meet over there and stuff like that,

because

it seems like you're all doing the hard work, but in terms of the market, it's not coming even through analyst notes.

Yes,

a

very fair point, Jainil. We are planning a analyst and investor day in our Gigafactory sometime maybe in a month or two.

That's on our agenda. Thank you so much for seeing that technical video and appreciating it.

Thank you.

Thank you. All right.

I think with this, we come to the conclusion of the session here. We appreciate your time and all of your questions during the call today.

Thank you so much for joining us, and we look forward to meeting you all during our next earnings conference. Thank you for joining us.

You may now log out from the conference call. Good evening.