New Delhi, Nov. 19 -- India's electric two-wheeler upstarts are beginning to look more like their legacy rivals-at least on profitability. EV startups Ola Electric and Ather Energy are now reporting gross margins that are inching close to the levels of internal-combustion engine (ICE) leaders like TVS Motor Company, Hero MotoCorp, and Bajaj Auto, even as the legacy firms work to improve margins in their own EV portfolios.

During their latest quarterly earnings calls, both Ola and Ather highlighted their improving unit economics, with gross margins close to the levels of the ICE manufacturers. However, the operating margin picture still differs sharply.

On gross margins, Ola Electric closed the July-September quarter with 30.7% gross mar...