Ola Electric reported a consolidated net loss of ₹428 crore in the June quarter of FY26, a 23% increase from ₹347 crore in Q1 FY25. Operating revenue fell nearly 50% YoY to ₹828 crore from ₹1,644 crore—a sharp decline attributed to intensifying competition in the Indian EV market
🔍 5 Key Highlights
- Revenue dropped sharply
Q1 FY26 revenue of ₹828 crore represented a 49.6% YoY decline from ₹1,644 crore - Loss widened despite cost cuts
Net loss rose from ₹347 crore to ₹428 crore, though operating expenses were reduced by 42.4%, from ₹1,849 crore to ₹1,065 crore - EBITDA loss narrowed
Consolidated EBITDA loss improved to ₹237 crore (margin –28.6%) from ₹695 crore in Q4 and –12.5% YoY. Crucially, the auto segment turned EBITDA‑positive in June - Gross margin best yet
Group gross margin reached 25.6%, driven by Gen‑3 product cost efficiencies, up from ~18–19% last year - Share price rallied
Despite losses, Ola’s shares surged 12–17% after the results, reflecting investor optimism around improved margins and auto‑segment break‑even
🔭 What’s Next for Ola
- FY26 targets: The company aims for ₹4,200–4,700 crore in revenue, 35–40% gross margins, and full-year auto EBITDA above 5%, driven by PLI incentives starting Q2
- Operational discipline: Project Lakshya is trimming opex—auto expenses fell from ₹178 crore to ₹105 crore monthly
- Product focus: With nearly 80% of Q1 deliveries from Gen‑3 scooters and new Roadster bikes on the rise, product mix is improving
- Path to profitability: Ola forecasts auto segment FCF breakeven by Q2, with consolidated free cash outflow improving to –₹282 crore
✅ Bottom Line
While Ola Electric’s ₹428 crore Q1 FY26 loss reflects steep revenue declines, the deeper story is one of operational progress. With improved margins, EBITDA positivity in the auto segment, and disciplined cost cuts, the company appears poised for a possible profitability turnaround later in FY26—driving investor confidence amid a challenging EV landscape.
