Ola Electric Mobility Q1 results: Loss widens 23%, revenue falls 50%

Ola Electric Mobility posted a deeper net loss for the April–June quarter (Q1) of 2025–26 (FY26), as the electric scooter maker contended with a sharp drop in revenue. The company reported a consolidated loss of ₹428 crore, widening 23 per cent from ₹347 crore in the same period a year earlier.

 

Revenue from operations slumped nearly 50 per cent to ₹828 crore, down from ₹1,644 crore a year ago. The steep decline in sales was partially offset by cost-cutting measures, with total expenses falling 42 per cent year-on-year (Y-o-Y) to ₹1,065 crore.

 

The results highlight the challenges facing India’s electric vehicle sector as it grapples with softening demand and heightened competition, even as firms push to scale production and capture market share. Ola’s market share is slipping amid rising competition from incumbents like Bajaj Auto and TVS Motor Company.

 

While losses widened Y-o-Y, the company’s net loss declined by more than 50 per cent on a quarterly basis. During the quarter under review, the company also reported a positive earnings before interest, tax, depreciation, and amortisation (Ebitda). “The company’s automotive (auto) business turned Ebitda-positive in June, on the back of strong gross margins owing to the company’s vertical integration strategy,” it said in a statement.

 

Ola Electric delivered a total of 68,192 vehicles in Q1FY26, up from 51,375 units in the fourth quarter (Q4) of 2024–25 (FY25), marking an increase of 32.7 per cent quarter-on-quarter. 

 

The auto segment Ebitda improved sharply to 11.6 per cent, compared to -90.6 per cent in the fourth quarter (Q4) of FY25, with June marking the first Ebitda-positive month for the auto business.

 

Consolidated Ebitda also saw a substantial recovery to -28.6 per cent from the previous quarter. The company’s cost-optimisation initiative, Project Lakshya, has driven major operating efficiencies, reducing monthly auto operational expenditure (opex) from ₹178 crore to ₹105 crore. Consolidated opex now stands at ₹150 crore per month, with a further reduction to ₹130 crore per month targeted through FY26. Operating cash flow for the auto business was nearly neutral in Q1, and free cash flow improved to -₹107 crore — a marked improvement from -₹455 crore in Q4.

 

Ola Electric’s product road map continues to show strong customer traction. The newly introduced Gen 3 scooters accounted for 80 per cent of total scooter sales during the quarter. These scooters have not only delivered better margins but have also sharply reduced warranty claims, reflecting the company’s ongoing engineering improvements.

 

Meanwhile, the rollout of Ola Electric’s Roadster X motorcycles is progressing in phases, with the product now available in 200 stores across India and set to scale further during the upcoming festival season. On the software front, MoveOS+ adoption surged to nearly 50 per cent among new customers, up from 2 per cent in Q4.

 

One of Ola Electric’s most significant technological advancements is the in-house production of its 4680 Bharat Cell, which will begin powering vehicles starting this Navratri. The company expects that by the end of FY26, it will fully utilise the 1.4 gigawatt-hour (GWh) capacity and install the remaining capacity to reach 5 GWh, scaling consumption to that level through 2026–27.

 

The company has also successfully developed Heavy Rare Earths-free motors, scheduled for production deployment in the third quarter of FY26. These initiatives, enabled by the company’s deep investment in vertical integration and research and development, are aimed at reducing costs and enhancing performance.

 

For FY26, the company expects to sell between 325,000 and 375,000 vehicles and generate revenue of ₹4,200–4,700 crore. With production-linked incentive benefits kicking in from the second quarter (Q2) for the Gen 3 product portfolio, gross margin is projected to rise to 35–40 per cent, and the company anticipates full-year auto Ebitda of over 5 per cent. It also expects the auto business to remain Ebitda-positive from Q2 onwards.