Ola Electric Mobility surges after net loss narrows to Rs 420 cr in Q1 FY26

Ola Electric Mobility rallied 16.15% to Rs 41.64 after the company's consolidated net loss narrowed to Rs 428 crore in Q1 FY26 as against net loss of Rs 870 crore in Q4 FY25.

Revenue from operations jumped 35.52% QoQ to Rs 828 crore in Q1 FY26.

Year on year basis, the companys consolidated net loss widened from Rs 347 crore while revenue from operations fell by 49.64% in Q1 FY26.

Pre-tax loss stood at Rs 428 crore in Q1 FY26 compared with pre-tax loss of Rs 324 crore in Q1 FY25.

The company reported negative EBITDA of Rs 237 crore in Q1 FY26, higher than the negative EBITDA of Rs 205 crore recorded in Q1 FY25.

Deliveries declined 45.53% to 68,192 units in Q1 FY26 from 1,25,198 units in Q1 FY25.

In auto segment, gross margin (GM) was 25.6% despite PLI contribution being only 1.8% as Gen 3 scooters and bikes will get certification in Q2 and Q3 respectively. The company aims to achieve a gross margin (GM) of 3540% by the end of FY26, supported by PLI benefits amounting to approximately Rs 40,000 to Rs 45,000 per vehicle.

The company said that Almost 80% of our scooters sold are now Gen 3 products. Gen 3 is a significantly superior product on performance and quality, leading to higher GM and lesser warranty claims. It will continue to have both Gen 2 and Gen 3 in the market for the foreseeable future. The Roadster rollout is also scaling up.

In addition, for the last couple of years, we have been developing rare earth free motors. We accelerated this program in April when the rare earth cuts happened and have already productionised our rare earth free motors which will be coming into our products starting next quarter. These motors ensure no business continuity risk, are parity in performance and save money as rare earth magnets are costly, the company stated in regulatory filing.

The company said that it is now ready and producing cells that are going to be used in its vehicles. These vehicle deliveries will be starting this Navratri. It expects to fully utilize the 1.4 GWh capacity by the end of FY26, while initiating the installation of the remaining capacity to reach 5 GWh and scaling up consumption to 5 GWh through FY27.

On outlook front, the company expects FY26 volumes to be around 3,25,000 - 3,75,000 vehicles and revenue to be around Rs 4200 - 4700 crore. It sees strong momentum in new products - Gen 3 scooters and the Roadster bike leading into the festive season.

Q1 Auto GM of 25.6% was largely without PLI. Starting Q2, the company expects to receive PLI benefits, supporting its targeted exit GM of 3540% for FY26. With operating costs expected to remain largely flat, auto EBITDA should be more than 5% for the whole year. For Q2, It expects auto EBITDA to turn positive and the auto business to generate operating cash flow later in FY26.

For the cell business, the company said that it will be completing the 5GWh installation and most of the payouts of about Rs 1,000 crore this year. 70% of this will be financed from the existing term loan. The cell business will be FCF positive at the production scale of 5GWh by the end of FY27.

Ola Electric Mobility is a leading electric vehicle (EV) manufacturer in India, specializing in the vertical integration of technology and manufacturing for EVs and their components, including battery cells.

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