Ola Electric shares down 70% from 52-week high; can firm see a turnaround after Q1? Here is what CEO said

Bhavish Aggarwal-led firm had reported a consolidated net loss of ₹428 crore for the April-June quarter of the financial year 2025-26 on Monday. It had reported a net loss of ₹347 crore in the same period last year.

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

Last seen, the stock was trading at ₹45.50 per share, tumbling 3.34% on NSE. Ola shares have lost 70% so far from their 52-week high of ₹157.40.

Bhavish Aggarwal says…

In an earnings call post the results, Bhavish Aggarwal said the company expects its auto business to be free cash positive by the end of fiscal year 2026.

Aggarwal has said the company’s outlook for the automotive business is to get to free cash positive by the end of this year. “We do expect it to consume only about ₹400-500 crore of incremental cash from here,” he said.

“We have transitioned our strategy from aggressive penetration to a more balanced, profitable growth strategy,” the EV maker’s CEO further said.

Q1 FY26 earnings details

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

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.

Meanwhile, in a letter to shareholders, the EV maker noted that its auto segment nearly achieved break-even on operating cash flow in Q1. Free cash outflow (FCF) for the auto business reduced to ₹107 crore from ₹455 crore in the previous quarter.

Outlook for FY26-FY27

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.

Ola Electric expects FY26 volumes to be around 325,000 - 375,000 vehicles and revenue to be around ₹4200 crore to ₹4700 crore. 

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.

What analysts say…

Global brokerage firm Bank of America (BofA) Securities said this was a comeback quarter for Ola Electric, but challenges on growth and market share remain.

Goldman Sachs guides for flattish FY26 revenue and a 5% auto EBITDA margin. The brokerage has acknowledged management's efforts in trying to pivot the business towards positive EBITDA and FCF breakeven.

Meanwhile, HSBC has raised estimates on better-than-expected margin improvement for the company.