India’s EV two wheeler makers shift focus from growth to profits

MUMBAI: India’s electric two-wheeler race is no longer just about who can accelerate the fastest, it’s increasingly about who can reach profitability without running out of charge. After years of chasing market share through rapid expansion and heavy investment, the country’s leading EV manufacturers are shifting gears towards margins, cash generation and financial discipline, according to a Moneycontrol report.

The change marks a new chapter for India’s electric mobility sector, where scale, localisation and operational efficiency are beginning to deliver tangible financial gains.

Ola Electric, once synonymous with aggressive growth, reported its first cash flow-positive quarter in Q4 FY26. The company also posted its highest-ever automotive gross margin of 38.5 per cent, more than double the 18.4 per cent recorded a year earlier, signalling significant improvements in cost management and product mix.

Meanwhile, Ather Energy continued to gain momentum. The company sold 2.63 lakh electric two-wheelers in FY26, up 69 per cent from 1.56 lakh units in FY25. Its market share climbed to 18.6 per cent from 11.5 per cent, while March-quarter deliveries hit a record 83,418 units. Revenue surged 50 per cent, manufacturing costs per vehicle fell 7 per cent, and EBITDA margins improved sharply from minus 19 per cent to minus 3 per cent.

TVS Motor Company also strengthened its electric credentials, selling 3.71 lakh EVs during FY26, a 33 per cent increase over the previous year. The company continued expanding its EV portfolio, intensifying competition in an increasingly crowded market.

Not every player enjoyed a smooth ride. Ola Electric’s deliveries fell to 1.73 lakh units in FY26 from 3.07 lakh units a year earlier, reflecting a period of operational recalibration and market share pressure. The company, however, has indicated that recovery efforts are underway after addressing earlier challenges.

Behind the numbers lies a broader industry transformation. Greater localisation of components, stabilising supply chains and improved manufacturing efficiency are helping EV makers reduce costs while improving profitability.

Investors, too, appear to be changing their expectations. The focus is gradually shifting away from headline sales figures towards sustainable growth models and clearer paths to profit.

For India’s electric two-wheeler industry, the message is becoming increasingly clear: in the next phase of the EV journey, balance sheets may matter just as much as batteries.