Ola Electric’s Financial Snapshot: Q1 FY26
Ola Electric, India’s leading electric two-wheeler manufacturer, reported a challenging first quarter for FY26, with revenue from operations dropping nearly 50% year-on-year to ₹828 crore—down from ₹1,644 crore in Q1 FY25. The company’s net loss widened to ₹428 crore, compared to ₹347 crore in the same period last year, reflecting ongoing headwinds in the electric mobility sector.
Key Financial Highlights
- Revenue: ₹828 crore (down 49.6% YoY)
- Net Loss: ₹428 crore (up from ₹347 crore YoY)
- EBITDA Loss: ₹237 crore (wider than ₹205 crore YoY)
- Gross Margin: ₹214 crore (down 29.4% YoY)
- E-scooter Deliveries: 68,192 units (down from 1,25,198 units YoY)
Operational Performance and Strategic Shifts
Despite the year-on-year decline, Ola Electric showed quarter-on-quarter improvement, with revenue rising from ₹611 crore in Q4 FY25 and net loss narrowing from ₹870 crore in the previous quarter. The company’s auto business turned EBITDA positive in June 2025, marking a pivotal moment as it moves toward sustainable profitability.
Cost Controls and Efficiency Gains
- Project Lakshya: Helped reduce monthly auto costs from ₹178 crore to ₹105 crore.
- Consolidated EBITDA Margin: Improved to -28.6% in Q1 FY26.
- Operating Cash Flow: Auto segment nearly achieved break-even, with free cash outflow dropping to ₹107 crore from ₹455 crore in Q4.
Product and Market Developments
Ola Electric’s Q1 performance was driven by its Gen 3 scooters and the new MoveOS+ software, which saw strong customer adoption. Nearly 80% of deliveries in Q1 came from Gen 3 scooters, contributing to the highest-ever gross margin in the auto segment at 25.6%.
- New Launches: The company began deliveries of its Roadster electric bike in May 2025.
- Network Expansion: Ola’s retail footprint has grown to 4,000 outlets, reaching beyond metros into smaller towns and rural markets.
- Software Monetization: Introduction of paid premium features under MoveOS+, with a 50% attachment rate among customers.
Outlook: Growth Targets and Profitability Ambitions
Looking ahead, Ola Electric projects FY26 vehicle sales of 3.25–3.75 lakh units and revenue between ₹4,200–₹4,700 crore. With Production Linked Incentive (PLI) benefits expected from Q2, the company targets gross margins of 35–40% and anticipates the auto business will remain EBITDA positive for the rest of the year.
Leadership’s Vision
Bhavish Aggarwal, Founder and CEO, emphasized the company’s focus on operational consolidation, margin improvement, and readiness for the next phase of growth. Ola is also investing in in-house solutions for critical components like rare earth magnets and ABS, aiming to reduce supply chain risks and enhance product reliability.
Share Price and Market Sentiment
Despite the widening losses, Ola Electric’s shares rose by up to 9% after the results announcement, reflecting investor optimism about the company’s turnaround efforts and profitability push. However, the stock remains well below its 52-week high, underlining the challenges ahead.
Ola Electric’s Q1 FY26 results reflect a period of transition, with the company doubling down on operational discipline, product innovation, and strategic expansion to secure its leadership in India’s electric mobility revolution.
