Ola Electric Q1FY26 results: Net loss widens to Rs 428 crore, revenue down 50% YoY

Bhavish Aggarwal, Founder, Ola Electric

Electric two-wheeler maker Ola Electric has posted a consolidated net loss of Rs 428 crore in Q1FY26 as against a loss of Rs 870 crore in Q4FY25 and Rs 347 crore in Q1FY25. Revenue for the quarter fell to Rs 828 crore, marking a 49.6 percent year-on-year (YoY) decline from Rs 1,644 crore.

Shares of Ola Electric rose nearly 6 percent to Rs 42.06 per share on the BSE, up 5.63 percent after the April - June quarter results, at around 11 a.m.

Quarterly performance improves

While the YoY performance shows loss widening, on a quarterly basis, the company's net loss has come down by more than 50%. During the quarter under review, the company has also turned EBITDA positive.

" The company’s auto business turned EBITDA positive in June, on the back of strong gross margins owing to the company’s vertical integration strategy," the firm said in a media statement on Jul 14.

The company’s cost optimization initiative, Project Lakshya, has driven operating
efficiencies, reducing monthly auto opex from Rs 178  to Rs 105 crores, the firm said.

Consolidated opex now stands at Rs 150 crore per month, and further reduction to Rs 130 crore per month is targeted through FY26.

"Operating cash flow for the auto business was nearly neutral in Q1, and Free Cash Flow improved to Rs 107 crore , a significant improvement from Rs 455 crore in Q4," the firm.

Ola Electric's net loss for the March quarter had widened to Rs 870 crore from Rs 416 crore in the year-ago period. Read More.

Last year, SoftBank Group-backed Ola Electric Mobility had announced a net loss for the quarter ended June 30, 2024 at Rs 347 crore, which widened by around 30 percent on-year. The firm's consolidated revenue from operations rose 32 percent to Rs 1,644 crore as against Rs 1,243 crore in Q1FY24, showed the company's filings on BSE on August 14, 2024.

In June 2025, it was reported that Hyundai Motor and Kia Corp had cut their stakes in the two-wheeler company amid quarterly losses and falling market share.

Moneycontrol was first to report on June 14 that Ola Electric has engaged with bankers to secure Rs 1,000-1,200 crore ($120-140 million) in private credit as the electric two-wheeler startup looks to refinance an existing bank loan.

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss was reported at Rs 237 crore against a Rs 205 crore YoY.

FY26 Outlook

The company expects to sell between 3,25,000 to 3,75,000 vehicles and generate revenue of Rs 4200 - Rs 4700 crore.

"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 firm said in the statement.

The company also expects the auto business to remain EBITDA positive from Q2 onwards.

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