Ola Electric, a leading electric two-wheeler manufacturer, is set to significantly boost its recurring revenue streams. The company projects its service revenue to reach between ₹400-500 crore by the fiscal year 2028, a substantial increase from the ₹130 crore recorded in FY26. This ambitious target was outlined in the company's recent shareholders' letter.
The projected growth in Ola Electric's service revenue is closely tied to the increasing maturity of its installed base. With over 1 million electric scooters already on the road, a growing proportion of these vehicles will soon move out of their initial warranty period. This shift is expected to generate heightened demand for parts, repairs, and other lifecycle services, transforming service from a support function into a high-margin earnings stream.
Strategic Expansion and Customer Monetization
According to Ola Electric, this expansion in service offerings is not merely about maintenance; it's a strategic move to deepen customer monetization and enhance customer lifetime value. The company anticipates a gross-margin profile of approximately 65% from these services, which will contribute meaningfully to its EBITDA as the installed base continues to grow.
“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 stated.
Dual Battery Chemistry Strategy
Beyond service revenue, Ola Electric is also strategically evolving its product portfolio through a dual battery chemistry approach. The company is deploying Nickel Manganese Cobalt (NMC) cells for its high-performance models, while preparing Lithium Iron Phosphate (LFP) batteries for its mass-market scooter segment.
- NMC Cells: Ola Electric's in-house 4680 NMC Bharat Cell currently powers its performance-focused vehicles, offering higher energy density for premium models.
- LFP Cells: The 46100 LFP cell has received Bureau of Indian Standards (BIS) certification and is ready for commercial integration. These cells will be progressively used in electric scooters with battery packs below 4 kWh, aiming to improve affordability and expand market reach due to their lower cost.
This differentiated strategy allows Ola Electric to match battery architecture with the specific economic and performance requirements of each product segment, treating chemistry selection as an active product-design lever rather than a procurement constraint. Battery packs represent a significant cost component for electric scooters, making LFP cells a crucial element for optimizing margins and pricing in the high-volume, cost-sensitive mass market.