Ola Electric Share Price Soars 12.5% Post Q1 Results Despite Wider Losses

Market Performance

The Ola Electric share price showed a sharp rebound on July 14 following the release of its Q1 FY26 earnings.

• The stock hit a fresh low of ₹39.58 during early trade.
• It later recovered strongly, surging over 12.5% intraday.
• As of 12:25 PM, the share price stood at ₹44.78, up 12.46% on the BSE.

This jump in the stock price came despite a rise in net losses, driven by sequential improvements and a positive EBITDA in the auto segment for the first time.

Main News: Ola Electric Q1 FY26 Results Snapshot

Ola Electric registered a consolidated net loss of ₹428 Crore in Q1 of FY26.

• YoY Comparison: Net loss widened from ₹347 Crore in Q1 FY25.
• QoQ Comparison: Loss narrowed significantly from ₹870 Crore in Q4 FY25.

The company witnessed a steep 49.6% YoY drop in revenue amid growing market competition.

• Q1 FY26 Revenue: ₹828 crore
• Q1 FY25 Revenue: ₹1,644 crore
• Q4 FY25 Revenue: ₹611 crore

Despite the yearly decline, the quarter-on-quarter performance showed recovery.

Company Details and Key Business Metrics

Revenue

• Revenue plunged 50% YoY to ₹828 Crore.
• Compared to ₹1,644 Crore in Q1 FY25.
• However, QoQ revenue grew 35.5%, up from ₹611 Crore in the March 2025 quarter.

EBITDA Loss

• Q1 FY26: ₹237 crore
• Q1 FY25: ₹205 crore
• EBITDA margin: -28.6% vs -12.5% YoY

Auto Segment EBITDA

• Significant improvement to -11.6% in Q1 FY26.
• Compared to -90.6% in Q4 FY25.
• Notably, June 2025 marked the first EBITDA-positive month for the auto division.

Gross Margin

• Improved to 25.8%, up from 18.4% YoY.
• The margin boost was attributed to BOM reduction and cost efficiencies through in-house technology and vertical integration.

Vehicle Deliveries and Market Competition

Ola Electric's total deliveries saw a significant drop during the quarter:

• Q1 FY26: 68,192 units
• Q1 FY25: 1,25,198 units

The 45.5% decline was primarily due to rising competition from key players like TVS Motor, Bajaj Auto, and Ather Energy.

Operating Expenses and Cost Optimization

Ola Electric's strategic cost-cutting initiative, Project Lakshya, showed a visible impact:

• Auto business monthly opex reduced from ₹178 Crore to ₹105 Crore.
• Consolidated monthly opex now stands at ₹150 Crore.
• Further reduction to ~₹130 Crore/month is being targeted.

These changes indicate strong operational efficiency, aiding better EBITDA performance.

Summary of the Article

• Ola Electric's share price rose 12.5% following its Q1 FY26 earnings.
• The company's net loss widened to ₹428 Crore, but QoQ losses reduced significantly.
• Revenue dropped nearly 50% YoY due to market competition but improved QoQ by 35.5%.
• EBITDA margins in the auto segment showed strong recovery, with June 2025 being EBITDA-positive.
• The company's cost reduction plan is successfully lowering operating expenses.
• Despite a fall in vehicle sales, gross margins improved to 25.8%, indicating better profitability efficiency.

The market responded positively to the company's sequential growth and strategic improvements, driving a notable surge in Ola Electric's share price.