Ola Electric reported a 35.5% quarterly rise in revenue to ₹828 crore in Q1 FY26, with its auto segment turning EBITDA positive. Cost reductions, strong product mix, and Gen 3 scooter demand boosted performance, lifting the stock price by nearly 9% on Monday.
India’s key stock indices were under selling pressure on Monday, with the Nifty and Sensex losing around 0.50% as of 12:07 pm. Despite the decline in the frontline indices, the broader markets outperformed, with the Nifty Midcap 100 and Smallcap 100 trading up by 0.43% and 0.67%, respectively.
Amid this broader market outperformance, stock-specific action was observed in Ola Electric, with its share price jumping over 8% and trading near a 5-day high.
Ola Electric share price is in focus on Monday, July 14, 2025, following the announcement of its Q1FY26 earnings. The company reported a 35.5% quarter-on-quarter (QoQ) rise in revenue, and its auto business turned EBITDA positive in June 2025. Key details are as follows:
Ola Electric Mobility Limited has reported financial performance for the quarter ended June 30, 2025. The company’s revenue from operations rose to ₹828 crore in Q1 FY26, up 35.5% from ₹611 crore in Q4 FY25. Vehicle deliveries also jumped 32.7% on a QoQ basis to 68,192 units from 51,375 units in the previous quarter.
The auto segment of Ola Electric turned EBITDA positive in June 2025, supported by a sharp rise in gross margins from 13.8% in Q4 FY25 to 25.6% in Q1 FY26.
Overall auto segment EBITDA improved substantially to -11.6%, compared to -90.6% in the previous quarter, while consolidated EBITDA stood at -28.6%. The shift reflects improved cost discipline and execution.
Through its cost optimisation drive, Project Lakshya, Ola Electric reduced monthly auto operating expenses from ₹178 crore to ₹105 crore. Consolidated operating expenditure is now ₹150 crore per month, with a target to bring it down to ₹130 crore during FY26. Operating cash flow for the auto business was nearly neutral in Q1 FY26. Free Cash Flow improved significantly to -₹107 crore from -₹455 crore in Q4 FY25.
The newly launched Gen 3 scooters formed 80% of total scooter sales in Q1 FY26, contributing to higher margins and fewer warranty claims. MoveOS+ software adoption surged to nearly 50%, a steep rise from just 2% in Q4. The phased rollout of the Roadster X motorcycle continues, with availability now across 200 stores nationwide, and expansion is planned for the festive season.
Ola Electric plans to start vehicle production using its in-house Bharat 4680 battery cells this Navratri. It aims to fully utilise its 1.4 GWh installed capacity by the end of FY26 and scale up to 5 GWh in FY27. The company is also set to deploy Heavy Rare Earths (HRE) free motors from Q3 FY26. Additionally, in-house dry coating technology in battery manufacturing will aid in reducing long-term conversion costs.
Ola Electric maintains its lead in the EV two-wheeler market with innovations like ABS-equipped models (S1 Pro+), being the only major player to offer this feature currently. An in-house ABS solution is in development and will be ready by January 2026, aligned with upcoming regulatory changes.
For FY26, Ola Electric projects total vehicle sales of 3.25 to 3.75 lakh units and revenue in the range of ₹4,200 to ₹4,700 crore. With Production Linked Incentive (PLI) benefits starting in Q2 for Gen 3 scooters, the company expects gross margins to improve to 35–40% and Auto EBITDA for the full year to exceed 5%. From Q2 onwards, the company anticipates maintaining a positive EBITDA for the auto segment.
On Monday, Ola Electric Share Price zoomed by 8.93% to its intraday high of ₹43.57 per share as the company posted its Q1 FY26 result. As of 11:42 am IST, the stock price of Ola Electric Mobility was trading at ₹40.92 per share, up by 2.86%.
In the last 12 months, the stock has seen a decline of 46.03% while since listing, the stock is down by 45.27%.
Ola Electric is India's leading EV manufacturer, operating from the Ola Future factory in Tamil Nadu, supported by its Battery Innovation Centre in Bengaluru. The company develops EVs and their core components through in-house R&D across India, the UK, and the US. It has a direct-to-customer model with over 4,000 stores, making it the largest company-owned automotive network in the country.
Disclaimer: The article is for informational purposes only and not investment advice.
For android only