Ola Electric’s shares jumped roughly 15% on July 14, reaching around ₹46 amid upbeat reactions to its Q1 FY26 earnings. Investors cheered despite a ₹428 crore net loss, focusing instead on the company’s operational progress and path to profitability Moneycontrol
🚀 4 Key Drivers Behind the Rally
1️⃣ Auto EBITDA turns positive
June marked the first-ever month that Ola’s auto division achieved positive EBITDA, a key milestone. The company’s cost-cutting initiative “Project Lakshya” reduced monthly auto opex from ₹178 crore to ₹105 crore
2️⃣ Gross margins hit record highs
Group gross margins surged to 25.6%—a sharp jump from 13–19% last year—thanks to efficiencies from its Gen 3 scooters and in-house parts
3️⃣ Loss narrows sequentially
Though the annual loss widened to ₹428 crore, it was significantly smaller than the ₹870 crore loss in Q4 FY25, boosting confidence that financial improvement is underway
4️⃣ Strong guidance & cash runway
Ola reaffirmed its FY26 targets: 3.25–3.75 lakh vehicle sales, revenue of ₹4,200–4,700 crore, and 35–40% gross margins. Management also confirmed sufficient cash reserves and ongoing debt refinancing
🔭 What’s Next?
- Sustain profitability: Investors will watch if auto EBITDA remains positive beyond June.
- Monitor margins trajectory: Can margins edge toward the 35%–40% FY26 target?
- Execution of strategy: Continued cost discipline and rollout of Gen 3 scooters and rare-earth‑free motors will be key
✅ Bottom Line
Ola Electric zoomed ~15% on strong Q1 signals—its first positive auto EBITDA month, record margins, narrowed losses, plus solid outlook and liquidity position. While it’s still early days, the results suggest investor belief in a genuine turnaround heading into FY26.
