Ola Electric has reported a revenue of ₹828 crore for the quarter ended June 30, 2025 (Q1 FY26), marking a robust 35% sequential growth and beating analyst expectations, despite headwinds in India’s electric mobility sector.
Net loss for the quarter stood at ₹428 crore, as the company continued to invest in technology and capacity expansion. On a year-on-year basis, revenue was lower due to an exceptionally high base in Q1 FY25, but operational momentum remained strong.
Vehicle deliveries surged to 68,192 units during the quarter, up 32.7% from Q4 FY25, defying forecasts that projected volumes to fall below 60,000 amid weak consumer sentiment and ongoing market corrections.
These results come shortly after a subdued forecast by Kotak Institutional Equities, which had estimated revenue of ₹685 crore and a net loss of ₹459 crore for the quarter.
Auto Segment Turns EBITDA Positive in June
A key highlight from the quarter was the auto segment turning EBITDA positive in June. For the full quarter, EBITDA losses narrowed to -11.6%, a major improvement from -90.6% in Q4 FY25. On a consolidated level, EBITDA loss improved to -28.6%, reflecting sustained gains from internal restructuring and cost control measures.
These improvements are attributed to Project Lakshya, Ola Electric’s cost optimisation initiative, which has reduced monthly auto operational expenditure from ₹178 crore to ₹105 crore. Overall consolidated opex now stands at ₹150 crore, with a target of bringing it down further to ₹130 crore by the end of FY26.
Consequently, free cash flow improved significantly, rising from -₹455 crore in Q4 FY25 to -₹107 crore in Q1 FY26.
Strategic Product Mix and Margin Recovery
The strong performance was supported by the growing adoption of Ola’s third-generation (Gen 3) scooters, which now contribute to 80% of total sales. These models offer better unit economics, improved performance, and fewer warranty claims—leading to stable gross margins, even as the company scales its presence in the mass-market segment.
While earlier concerns suggested that a shift to budget-friendly variants might impact profitability, Ola’s focus on in-house innovation and improved manufacturing processes has helped maintain financial resilience.
Scaling Up In-House Technology
The company reaffirmed its commitment to localisation with plans to deploy its proprietary 4680 “Bharat Cell”—developed using a dry coating process—starting this Navratri. Ola currently operates at a 1.4 GWh cell capacity and aims to scale it up to 5 GWh by FY27, potentially boosting margins and reducing import dependence.
Additionally, Ola is developing rare earth-free motors, expected to go into production in Q3 FY26, and an in-house ABS system set for launch in January 2026. These innovations underline Ola’s goal of building a self-reliant EV ecosystem in India.
Positive Outlook for FY26
Looking ahead, the company has set an ambitious vehicle sales target of 3.25 to 3.75 lakh units for FY26 and expects to clock ₹4,200 crore to ₹4,700 crore in revenue. Ola also anticipates its auto segment EBITDA to cross 5% for the fiscal year, with sustained profitability beginning in Q2, aided by benefits under the PLI scheme for its Gen 3 models.
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