Ola Electric Mobility , India's leading electric vehicle manufacturer, has reported significant progress in its financial performance for the first quarter of fiscal year 2026 (Q1FY26) and outlined ambitious projections for the future.

Q1FY26 Financial Highlights

Positive Auto EBITDA Expected in Q2

In a major milestone, Ola Electric expects to achieve positive Auto EBITDA in the second quarter of FY26. This projection comes after the company reported an improvement in its Auto EBITDA margin to -11.60% in Q1FY26, up from -90.60% in Q4FY25.

Operational Cash Flow Projections

The company is optimistic about its cash flow prospects, projecting operating cash flow from its auto business by FY26. For Q1FY26, the auto business was almost neutral on operating cash flow, marking a significant improvement from previous quarters.

Product Innovation and Expansion

Ola Electric has confirmed plans to produce rare earth-free motors for upcoming products in the next quarter. This move is expected to mitigate supply chain risks and potentially reduce costs.

Key Strategic Developments

1. Gen 3 Scooters: The company reported strong uptake for its Gen 3 scooters, with about 80% of scooters sold in Q1 being Gen 3 products.

2. MoveOS+: The company's software feature package, MoveOS+, saw a significant increase in adoption, with nearly 50% of customers purchasing it with their vehicles in Q1, up from 2% in Q4.

3. 4680 Cell Production: Ola Electric is set to begin using its in-house produced 4680 cells in vehicles, with deliveries expected to start by Navratri.

4. Roadster Rollout: The company's Roadster model is now available in about 200 stores and is expected to scale up to the majority of stores in the current quarter.

Financial Outlook

For FY26, Ola Electric projects:

Challenges and Mitigations

Despite the positive projections, Ola Electric acknowledges ongoing challenges, including negative cash flow from operations in Q1FY26 (₹143.00 crore). The company's management has outlined strategies to support operations and meet obligations, including available cash, expected future cash flows, credit limits, and potential new borrowings.

Ola Electric's Q1FY26 results and future projections demonstrate the company's focus on achieving profitability while continuing to innovate in the electric vehicle space. As the EV market in India evolves, Ola's strategic initiatives in vertical integration, in-house technology development, and direct customer relationships will be crucial in maintaining its competitive edge.

Ola Electric Mobility , a prominent player in India's electric vehicle market, has released its financial results for the first quarter, revealing significant challenges in its operations. The company reported a sharp decline in revenue and an increase in losses compared to the same period last year.

Revenue Slump

Ola Electric's revenue for Q1 stood at ₹828.00 crore, marking a substantial 49.60% decrease from ₹1,644.00 crore reported in the corresponding quarter of the previous year. This significant drop in revenue indicates a considerable slowdown in the company's sales and operations.

Widening Losses

The company's financial struggles were further highlighted by its widening losses:

• EBITDA Loss: Increased to ₹170.00 crore from ₹130.00 crore year-over-year.
• Consolidated Net Loss: Expanded to ₹430.00 crore from ₹350.00 crore in the comparable period.

Financial Position

Despite the challenging quarter, Ola Electric maintains a substantial cash position. As of June 30, the company reported:

• Cash and Bank Balances: ₹2,563.00 crore in fixed deposits
• Additional Funds: ₹31.00 crore held in the Group's monitoring accounts

Future Outlook

In response to these financial challenges, Ola Electric's management has taken steps to secure additional funding:

• The Board of Directors has approved raising up to ₹1,700.00 crore through the issuance of non-convertible debentures and other eligible debt securities.
• This move indicates the company's efforts to strengthen its financial position and support ongoing operations.

Operational Challenges

The decline in revenue and increase in losses suggest that Ola Electric is facing significant operational challenges. These could be attributed to various factors such as increased competition in the electric vehicle market, supply chain issues, or changes in consumer demand.

As Ola Electric navigates through these challenging times, investors and industry observers will be closely watching the company's strategies to reverse the revenue decline and improve its bottom line in the coming quarters.