Ola Electric reports wider Q1 FY26 loss at ₹428 crore, revenue falls 50% YoY to ₹828 crore. The company shows sequential improvements and targets recovery with PLI benefits.
Ola Electric, India’s leading electric two-wheeler manufacturer headquartered in Bengaluru, Karnataka, posted a consolidated net loss of ₹428 crore for the first quarter of the financial year 2025-26 (Q1 FY26), reflecting a wider loss compared to ₹347 crore in the same quarter last year. The company, led by CEO Bhavish Aggarwal, is known for its electric scooters and sustainable mobility innovations.
Despite a 49.6% YoY revenue drop to ₹828 crore—impacted by strong competition from Bajaj Auto, TVS Motor, and Ather Energy—Ola Electric saw sequential improvements from its previous quarter’s ₹611 crore revenue and narrowed losses from ₹870 crore in Q4 FY25.
Ola Electric (official website) delivered 68,192 units in Q1 FY26, significantly lower than 1,25,198 units delivered in the same period last year.
On the operating front, EBITDA loss rose to ₹237 crore, up from ₹205 crore YoY, with margins dropping to -28.6% from -12.5%. However, its auto segment showed signs of turnaround with June marking its first EBITDA-positive month, pushing segment margins to -11.6%, a sharp improvement from -90.6% in Q4 FY25.
Also Read: Board Meeting Alert: Ola Electric to Review Financials This Monday
What Sparked the 5.65% Jump in Ola Electric?
Gross margin improved to 25.8%, driven by Gen 3 BOM cost reductions and tech-driven efficiencies under Project Lakshya—a cost-optimization initiative that reduced auto monthly opex from ₹178 crore to ₹105 crore. Ola targets consolidated monthly opex of ₹130 crore by the end of FY26.
Looking ahead, Ola expects to sell 3.25–3.75 lakh vehicles in FY26 and generate revenue between ₹4,200–₹4,700 crore. With PLI (Production Linked Incentive) benefits kicking in from Q2, the company anticipates gross margins to rise to 35–40% and auto business EBITDA to remain positive for the rest of the year.
Meanwhile, Ola Electric’s share price rebounded from a record low of ₹39.58 to ₹42.62 on the BSE, marking a 7% intraday jump. Analysts remain cautious, however, with market expert Anshul Jain of Lakshmishree Investments warning of a potential downside if the stock fails to close above ₹45 in the near term.
