Ola Electric Q1 Results: Ola Electric incurred a higher loss on an annual basis in the first quarter of FY 2025-26 (Q1 FY26). However, there was some improvement in quarter-on-quarter (QoQ) performance.
Ola Electric Q1 Results: Electric two-wheeler maker Ola Electric released its results for the first quarter of FY 2025-26 (Q1 FY26) on Monday, July 14, in which the company incurred a higher loss on an annual basis. However, there was some improvement in quarter-on-quarter (QoQ) performance. The company incurred a consolidated net loss of Rs 428 crore this quarter, which is higher than the loss of Rs 347 crore in the same quarter last year (YoY). However, in the last quarter i.e. March 2025, the company’s loss was Rs 870 crore, so the company has reduced the loss on a quarterly basis. After the results, the stock saw a rise of about 5%. Around 11:15 am, the stock was trading 4.75% higher at Rs 41.71. However, the stock is down 74% from its 52-week high.
Big drop in revenue
Revenue from operations declined by about 49.6% year-on-year to Rs 828 crore, while the company had reported revenue of Rs 1,644 crore in Q1 FY25. The main reason for this was the increasing competition in the market, which affected sales. However, quarter-on-quarter, there has been an improvement from Rs 611 crore in the March quarter.
Improvement in gross margin, cost control
The company’s gross margin has improved – from 18.4% in Q1 last year to 25.8% this time. That is, the management has shown progress on the cost control front. Operating loss also widened to ₹237 crore from ₹205 crore last year. The company’s delivery declined by 45% in Q1 to 68,192 units. The company has projected total volumes for FY26 to be 3.25 to 3.75 lakh units. With this, the company has projected revenue to be between ₹4,200-4,700 crore in FY26.
Expectations from Q2: New launch, EBITDA positive
The company said that it is going to launch a new model with 4,680 in-house sales in Q2. The management is confident that the EBITDA of the automotive segment can turn positive in Q2, that is, there is a possibility of profit at the operating level.
The company is in talks with lenders to refinance part of the debt. Ola Electric had cash of around ₹3,197 crore at the end of Q1, which could prove to be crucial in supporting the company’s funding and operations.
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