Ola Electric Mobility Ltd on Monday released its fiscal first quarter earnings report with loss at Rs 428 crore, widened from Rs 347 crore reported during the corresponding quarter of previous financial year. However, on a sequential basis, the loss narrowed from Rs 870 crore posted at the end of the March quarter of FY25.
It posted revenue from operations for Q1 at Rs 828 crore, recording a significant drop of 49.64 per cent as compared to Rs 1,644 crore reported during the first quarter of FY25. The company maintained that revenue plunged on the back of massive decline in sales during the period due to heavy competition from other players like Bajaj Auto, TVS Motor and Ather Energy. In terms of quarter-on-quarter, the performance improved with the company having posted a revenue of Rs 611 crore in the March 2025 quarter.
Ola Electric delivered 68,192 units in the June quarter of FY26, as against 1,25,198 units in the same period last year.
The company’s consolidated EBITDA loss narrowed to Rs 237 crore in Q1FY26, posting a significant improvement from Rs 695 crore in the previous quarter.
Ola Electric said that its auto business turned EBITDA positive in June, on the back of strong gross margins owing to the company’s vertical integration strategy.
Shares of Ola Electric surged nearly 17 per cent intraday to hit a high of Rs 46.69.
Ola Electric Q1: Gross margin performance
The gross margin, meanwhile, improved to 25.8 per cent from 18.4 per cent on a YoY basis. In a letter to the shareholders, Ola Electric said, “This is our best GM performance ever, driven by Gen 3 BOM reduction as a result of our focus on vertical integration and in house tech and this trend will continue over the next few quarters.” It further added that the company’s FY26 exit target is to have the GM in the range of 35-40 per cent with PLI benefits, which will be around Rs 40,000 – Rs 45,000 per vehicle.
Further, the company’s cost-cutting initiative Lakshya brought down its auto operating expenses from Rs 178 crore per month in Q3FY25 to Rs 105 crore a month. Currently, Ola Electric’s total (consolidated) monthly operating expenses stand at about Rs 150 crore and is further expected to be reduced to around Rs 130 crore during FY26. Even if volumes double, we expect consolidated opex to stay close to Rs 150 crore per month by the end of FY26, it added.
Ola Electric Q1: FY26 outlook
Ola Electric said that the company plans to sell between 3.25 lakh and 3.75 lakh vehicles this year, aiming for revenue of Rs 4,200- Rs 4,700 crore. With Production Linked Incentive (PLI) benefits kicking in from Q2 for its Gen 3 products, Ola Electric said, gross margins are expected to improve to 35–40 per cent. The company is targeting full-year auto EBITDA of over 5 per cent and expects the auto business to turn EBITDA positive starting Q2.
Ola Electric Q1: Will rare earth shortage affect the business?
Rare earth supply is a key long-term risk for auto makers. Since the company designs and builds its motors, controllers, and software in-house, it added, “we have several ways to manage this risk”. In the short term, Ola Electric maintained healthy inventory levels and sourced rare earth magnets from two different countries to ensure flexibility. Ola Electric said, “And since we are not reliant on intermediary motor suppliers, we’ve been able to change over quickly and ramp up other sources of rare earth magnets.’