Ola Electric Q1 FY26: Net loss widens to ₹428 crore, revenue halves; check details

Ola’s revenue from operations stood at ₹828 crore in Q1 FY26, declining 50% from ₹1,644 crore in Q1 FY25.

The company’s EBITDA loss for the reporting quarter stood at ₹237 crore in contrast to ₹205 crore year-on-year (YoY).

Following the earnings announcement, shares of Ola Electric were trading at ₹41.92 apiece on the National Stock Exchange, surging 5.33%.

Ola said that its auto segment cash generation was within reach: “Q1FY26 nearly neutral, structural improvements in opex and working capital.”

It further stated that new launches were well received, there was strong uptake for Gen 3 scooters, bikes were generating a lot of interest, and MoveOS+ sales were bringing high-margin revenue.

Ola also stated that it is ready with in-house solutions for risks like rare earth magnets and ABS.

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 have fully utilised the 1.4 GWh and installed the remaining capacity to get to 5 GWh and scale consumption to 5 GWh through FY27.

The EV maker has also successfully developed Heavy Rare Earths (HRE)-free motors,which are scheduled for production deployment in Q3 FY26.

“In sync with this industry dynamic, we’ve made a pivot to our strategy over the last two quarters from aggressive penetration to balanced profitable growth. Our goal in this phase is to consolidate and institutionalise our operations, improve our margins, and get ready for the next phase of growth driven by our expanding product portfolio, improving distribution, and engaging the next set of customers entering the industry. This strategy is now getting results, as seen in our Q1 results,” the company said.

Ola Electric expects FY26 volumes to be around 325,000 - 375,000 vehicles and revenue to be around ₹4200 crore to ₹4700 crore. “We see strong momentum of our new products—Gen 3 scooters and the Roadster bike—leading into the festive season. Our supply chain, engineering, and manufacturing teams continue to improve our product quality and BOM cost, and the benefits should continue to come into the P&L through the year,” it added.

Its Q1 auto GM of 25.6% was largely without PLI, and from Q2 onwards we should get the PLI benefit too, leading our exit GM for FY26 to be around 35-40%.

For the cell business, Ola will be completing the 5GWh installation and most of the payouts of about ₹1000 crore this year, it said.

The company further said that 70% of this will be financed from the existing term loan. The cell business will be free cash flow (FCF) positive at the production scale of 5 GWh by the end of FY27.

Ola Electric’s newly introduced Gen 3 scooters accounted for 80% of total scooter sales during the quarter. The EV maker said that these scooters have not only delivered better margins but have also significantly 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 festive season.