Ola Electric sales at 60k units in Q1, sees sustained demand recovery in Q2

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Ola Electric is expecting a sustained demand recovery in the second quarter, according to sources, with its Q1 FY26 vehicle registrations reaching nearly 60,000 units, as indicated by VAHAN data.

The company, which saw registrations grow 9 per cent month-on-month in June, is projected to post quarter-on-quarter revenue growth of nearly 25 per cent, underlining the gains from its recalibrated sustainable growth efforts, said people tracking the company's performance.

"Factoring in deliveries in Telangana and the clearance of pending backlogs from Q4 FY25, Ola Electric is now expected to deliver over 65,000 vehicles in Q1 FY26. This strong delivery performance puts the company well on course to comfortably meet its revenue guidance of ₹800-850 crore for the quarter," a source said.

The person said the growth in June registrations marks a "clear shift in trajectory, signalling that Ola Electric is regaining pace after a tempered Q4 FY25. The recent uptick also suggests sustained demand recovery heading into the second quarter".

Mired in aftersales and service issues in the past, Ola Electric's performance in Q1 FY26 may well serve as a turning point in its growth narrative, said the source, adding that pick up in volumes, revenue trending upward, and improvement in gross margins augur well for the company.

Ola Electric's sales growth comes on the back of a four-fold increase in its network, reaching 4,000 stores in December last year. The expansion spanned beyond metros and Tier I and II cities into smaller towns and tehsils.

The company had faced multiple challenges in FY25. It had cut around 1,000 jobs across different functions as part of a restructuring exercise to reduce losses.

In March, the company's arm, Ola Electric Technologies Pvt Ltd, settled all dues with its erstwhile vehicle registration service provider Rosmerta Group, which had sought to initiate insolvency proceedings against the company.

Last year, the Central Consumer Protection Authority (CCPA) had ordered a detailed probe into complaints related to alleged "deficiencies" in services and electric two-wheelers manufactured by Ola Electric. The company said that out of 10,644 complaints received from the CCPA, it has resolved 99.1 per cent of the complaints.

However, in January this year, CCPA sought additional documents and information from the company regarding the complaints.

The company had reported a consolidated net loss of ₹870 crore for the fourth quarter ended March 31, 2025, while its revenue from operations declined to ₹611 crore from ₹1,598 crore in the year-ago period.

For FY25, the company reported a net loss of ₹2,276 crore compared with ₹1,584 crore in the 2023-24 fiscal. Revenue from operations declined to ₹4,514 crore against ₹5,010 crore in FY24.