Ola Electric Q1 FY26 Results: Ola Electric’s Revenue in June Quarter Down by 49.6%
By Ankur Chandra | Updated at: Jul 14, 2025 01:50 PM IST
Bengaluru, July 14, 2025 – Ola Electric Mobility Ltd’s (NSE: OLAELEC, BSE: 544225) revenue from operations in June quarter came down by 49.6% year-on-year to Rs 828 crore. Its EBITDA in the quarter stood at – 237 crore.
New Gen3 products, including the Roadster bike, have improved operational metrics, with gross margins rising to 25.6% and higher consumer interest. This marks a critical phase in Ola Electric’s shift from aggressive market penetration to structured, profitable growth amid evolving EV sector dynamics and reduced government subsidies.
The company’s stock was up by almost 7% at ₹42.57 (at 11:15 AM). The stock reached the day’s high of ₹43.57 and the low was ₹39.60. There was a significant increase in the total traded volume, which was more than 6.7 crore shares during the early trading hours.
Q1 FY26 Highlights
| Key Metrics | Q1 FY25 | Q4 FY25 | Q1 FY26 | YoY (%) | QoQ (%) |
|---|---|---|---|---|---|
| Revenue from Operations (₹ Cr) | 1,644 | 611 | 828 | -49.6% | +35.5% |
| Consolidated Gross Margin (%) | 18.4% | 13.7% | 25.8% | +740 bps | +1,210 bps |
| Consolidated EBITDA (₹ Cr) | -205 | -695 | -237 | – | Improved |
| PAT (Net Loss) (₹ Cr) | -347 | -870 | -428 | – | Improved |
| Free Cash Flow (₹ Cr) | -835 | -625 | -282 | – | Improved |
| EV Deliveries (Units) | 1,25,198 | 51,375 | 68,192 | -45.5% | +32.7% |
Auto segment EBITDA margin improved to -11.6%, with EBITDA turning positive in June 2025, aided by lower operating costs and higher gross margin from Gen 3 scooters, which contributed to 80% of total deliveries during the quarter.
Segment Performance
Auto Segment (Two-Wheelers)
| Metric | Q4 FY25 | Q1 FY26 |
|---|---|---|
| Revenue from Operations (₹ Cr) | 611 | 826 |
| Gross Margin (%) | 13.8% | 25.6% |
| EBITDA (₹ Cr) | -₹554 | -₹96 |
| Free Cash Flow (₹ Cr) | -₹455 | -₹107 |
| Deliveries (Units) | 51,375 | 68,192 |
The gross margin expansion was primarily driven by cost-efficient Gen 3 models, improved working capital, reduced inventory days, and decreased warranty claims. Ola expects FY26 exit gross margin to rise to 35-40%, supported by Production Linked Incentive (PLI) contributions from Q2 onwards.
Cell Segment (4680 Battery Gigafactory)
| Metric | Q4 FY25 | Q1 FY26 |
|---|---|---|
| Revenue from Operations (₹ Cr) | 4 | 3 |
| Gross Margin (%) | 79.3% | 65.2% |
| EBITDA (₹ Cr) | -₹29 | -₹43 |
| FCF (₹ Cr) | -₹76 | -₹91 |
Ola began production of its indigenous 4680 cells, which will power vehicles starting Q2 FY26, coinciding with Navratri. The company has invested ₹1,500 crore in this initiative and will scale to a 5 GWh plant by FY26-end, with total capex of ₹2,800 crore. Full-scale economics will drive FCF positivity by FY27.
Strategic and Operational Initiatives
- Lakshya Cost Program reduced monthly auto opex from ₹178 crore in Q3 FY25 to ₹105 crore in Q1 FY26.
- MoveOS+ paid software feature had a 50% attachment rate in Q1, up from 2% in Q4.
- Warranty costs declined substantially with Gen 3 models showing 60% fewer claims vs Gen 2.
- Rare-Earth-Free Motors are now production-ready for Q2 rollout.
- In-house ABS system on track for regulatory compliance by January 2026.
- Roadster X bike rollout underway, available in ~200 stores, with full-scale distribution expected by the festive season.
IPO Fund Utilization Update
Ola raised ₹5,275 crore from its IPO in August 2024. As of June 30, 2025, ₹2,681 crore had been utilized.
| Purpose | Allocated | Utilized | Balance |
|---|---|---|---|
| Cell Plant Capex (Ola Cell Technologies) | ₹1,228 Cr | ₹0 Cr | ₹1,228 Cr |
| Loan Repayment (Ola Tech Pvt Ltd) | ₹800 Cr | ₹800 Cr | ₹0 Cr |
| R&D and Product Development | ₹1,600 Cr | ₹456 Cr | ₹1,144 Cr |
| Organic Growth Initiatives | ₹350 Cr | ₹299 Cr | ₹51 Cr |
| General Corporate Purposes | ₹1,297 Cr | ₹1,126 Cr | ₹171 Cr |
| Total | ₹5,275 Cr | ₹2,681 Cr | ₹2,594 Cr |
₹2,563 crore of unutilized funds are parked in fixed deposits, and ₹31 crore is held in monitoring accounts.
Regulatory Disclosures
- The company has responded to queries from SEBI and stock exchanges on differences between Vahan data and its reported figures. Ola clarified that Vahan reflects registration while its reports include backlog clearances and deliveries to non-Vahan states.
- CCPA requests regarding customer grievances are being addressed. Management expects no material impact on financials.
FY26 Guidance & Outlook
- Delivery target: 3.25–3.75 lakh vehicles
- Revenue projection: ₹4,200–₹4,700 crore
- Auto EBITDA: Positive for full year with >5% margin
- Auto capex: ₹300 crore (including R&D)
- Auto FCF: Positive by FY26-end
- Cell segment FCF: Targeted for FY27 at 5 GWh scale
“We are now geared for profitable scale. Our investments in vertical integration, in-house tech, and the direct-to-consumer network have started compounding. This advantage will grow stronger as legacy OEMs catch up,” the company stated in its shareholder communication.
About Ola Electric
Ola Electric Mobility Ltd is India’s largest EV 2-wheeler OEM, listed on NSE and BSE. The company operates an integrated manufacturing facility (Ola FutureFactory) and a gigafactory for advanced battery cells. Its D2C retail network, vertical tech stack, and in-house innovations have positioned it as a dominant force in India’s electric mobility transformation.
REF: https://nsearchives.nseindia.com/corporate/OLAELECTRIC_14072025102928_Shareholders_Letter_OEM.pdf
https://nsearchives.nseindia.com/corporate/OLAELECTRIC_14072025103421_Outcome_OEM_Final.pdf
https://nsearchives.nseindia.com/corporate/OLAELECTRIC_14072025103826_KPI_data_book_OEM.pdf
https://nsearchives.nseindia.com/corporate/OLAELECTRIC_14072025104713_Press_Release_OEM.pdf
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