Ola Electric shares jump nearly 18% despite loss widens in Q1; here's why stock is surging

Shares of electric two-wheeler maker, Ola Electric Mobility, rose as much as 17.6% to hit an intraday high of ₹46.83 on the BSE despite its loss widened in first quarter of the current financial year. Ola Electric shares rose as much as 17.71% to hit an intraday high of ₹46.85 on the National Stock Exchange.

Ola Electric shares surged after the company said that its auto gross margins improved massively to 25.6% in June quarter as against 13.8% in the year-ago period.

"Ola Electric’s Q1 FY26 performance demonstrated strong financial discipline and execution. The auto segment EBITDA improved sharply to -11.6%, compared to -90.6% in Q4 FY25, with June marking the first EBITDA-positive month for the auto business. The consolidated EBITDA also saw a substantial recovery to -28.6% from the previous quarter," the company said in a press release.

Ola Electric expects to sell between 3,25,000 to 3,75,000 vehicles and generate revenue of ₹4,200-4,700 crore in the current financial year.

"With Production Linked Incentive (PLI) benefits beginning from Q2 for Gen 3 product portfolio, gross margin is projected to rise to 35% - 40%, and the company anticipates full-year Auto EBITDA of above 5%. The company also expects the auto business to remain EBITDA positive from Q2 onwards," the Bengaluru-based company said.

Ola Electric Q1 earnings

Bhavish Aggarwal-led Ola Electric Mobility reported a consolidated net loss of ₹428 crore for the April-June quarter of the financial year 2025-26 on Monday, July 14. The firm 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.

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

As of 14:08 pm, Ola Electric shares traded 14.82% higher at ₹45.72, outperforming the BSE500 index which was down 0.10%.