Ola Electric sees service revenue tripling to ₹400-500 crore by FY28

Bhavish Aggarwal-led Ola Electric expects service revenue to grow over threefold from ₹130 crore in FY26 to ₹400-500 crore by FY28, according to the company’s shareholders’ letter.

“As a growing proportion of our installed base moves outside warranty, we expect to expand recurring revenue from parts, repairs and other lifecycle services,” the electric two-wheeler maker said.

Based on its current roadmap, service revenue is targeted to grow from around ₹130 crore in FY26 to ₹400-500 crore by FY28, with an expected gross-margin profile of approximately 65%.

“This can deepen customer monetisation, increase customer lifetime value and create an additional high-margin earnings stream that contributes meaningfully to EBITDA as the installed base grows,” the EV maker said.

Ola Electric has an installed base of more than 1 million customers.

“Service can evolve from primarily a customer-support function into a meaningful recurring and high-margin revenue stream beyond the initial vehicle sale,” the company said.

Integration of LFP cells

Ola Electric is betting on a dual battery chemistry strategy to expand its electric two-wheeler portfolio, deploying nickel manganese cobalt (NMC) cells for performance models while preparing lithium iron phosphate (LFP) batteries for mass-market scooters.

The company said its in-house 4680 NMC Bharat Cell is already powering its performance-focused vehicles, while its 46100 LFP cell has received Bureau of Indian Standards (BIS) certification and is ready for commercial deployment. The LFP cells will be progressively integrated into electric scooters with battery packs below 4 kWh, where their lower cost is expected to improve affordability.

“This gives us a differentiated two-chemistry strategy across the portfolio: NMC for performance-led products and LFP for high-volume, cost-sensitive applications. Chemistry selection becomes an active product-design lever rather than an external procurement constraint,” the company said, adding it can increasingly match battery architecture to the economics and performance requirements of each product segment.

Battery packs account for a significant share of an electric scooter's cost, making LFP cells a key lever for improving margins and pricing in the mass-market segment, while NMC batteries continue to power premium models that require higher energy density and performance.