Key Highlights:

• Revenue from operations reached ₹2,211.48 crore in Q1 FY26
• Gross profit per vehicle increased to ₹31,000
• Auto segment achieved EBITDA positive status in June 2025
• Delivered 68,000 vehicles during the quarter
• Gen 3 platform accounts for 80% of overall sales

Financial Performance

Ola Electric Mobility reported a strong financial performance for Q1 FY26. The company's revenue from operations stood at ₹2,211.48 crore, compared to ₹1,818.21 crore in the previous quarter. This represents a quarter-on-quarter growth of 21.60%.

The company's gross profit per vehicle saw a significant increase, reaching ₹31,000. This improvement in profitability can be attributed to the successful implementation of the Gen 3 platform and various cost-saving initiatives.

Operational Highlights

One of the most notable achievements for Ola Electric this quarter was its auto segment turning EBITDA positive in June 2025. This milestone demonstrates the company's progress towards sustainable profitability.

The company delivered 68,000 vehicles during the quarter, with the Gen 3 platform accounting for approximately 80% of overall sales. This strong adoption of the new platform highlights the success of Ola's product strategy.

Product Updates

Ola Electric's Gen 3 platform has been well-received in the market, offering improved performance, margins, and quality. The company also introduced its first electric motorcycle, the Roadster, which has garnered positive feedback from customers.

Future Outlook

Looking ahead, Ola Electric aims to sell between 3.25 lakh to 3.75 lakh vehicles in FY26. The company is focusing on expanding its product portfolio, including the launch of its 4680 cell vehicles by the festive season.

Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, commented on the results: "This has been, in many ways, a transformative quarter for us. We have transitioned our strategy from aggressive penetration to a more balanced profitable growth strategy."

Conclusion

Ola Electric's Q1 FY26 results demonstrate the company's progress in achieving profitability while maintaining growth. With its focus on technological innovation, product development, and operational efficiency, Ola Electric appears well-positioned to capitalize on the growing electric vehicle market in India.

Investors and industry observers will be keenly watching Ola Electric's performance in the coming quarters as it continues to execute its strategy in the competitive electric two-wheeler segment.

Ola Electric Mobility 's shares experienced a significant 20% jump following the release of its better-than-expected Q1 results. The electric vehicle manufacturer demonstrated notable improvements in its financial performance, marking a crucial milestone in its journey towards profitability.

Key Financial Highlights

• Revenue Growth: Ola Electric reported a revenue of ₹828.00 crore for Q1, representing a 35.50% increase compared to the previous quarter.
• Narrowed Losses: The company's losses narrowed to ₹428.00 crore, showing a substantial improvement in its financial position.
• Gross Margin Expansion: Gross margins hit an impressive 25.60%, up from 13.70% in the previous quarter.
• EBITDA Positive: The auto segment turned EBITDA positive in June, a significant achievement for the company.
• Delivery Increase: Vehicle deliveries rose to 68,192 units, marking a 32.70% increase from the previous quarter.

Operational Improvements

Ola Electric's Q1 performance demonstrated strong financial discipline and execution. The auto segment EBITDA improved sharply to -11.60%, compared to -90.60% in the previous quarter. The company's cost optimization initiative, Project Lakshya, has driven significant operating efficiencies, reducing monthly auto operating expenses from ₹178.00 crore to ₹105.00 crore.

Product Innovation and Customer Adoption

The company's product roadmap continues to yield strong customer traction. The newly introduced Gen 3 scooters accounted for 80% of total scooter sales during the quarter. These scooters have not only delivered better margins but have also significantly reduced warranty claims.

The rollout of Ola Electric's Roadster X motorcycles is progressing in phases, with the product now available in 200 stores across India and set to scale further during the upcoming festive season.

Technology Advancements

Ola Electric is set to begin powering vehicles with its in-house produced 4680 Bharat Cell starting this Navratri. The company has also successfully developed Heavy Rare Earths (HRE) free Motors, scheduled for production deployment in Q3.

Future Outlook

For the current fiscal year, Ola Electric expects to sell between 325,000 to 375,000 vehicles and generate revenue of ₹4,200.00 - ₹4,700.00 crore. With Production Linked Incentive (PLI) benefits beginning from Q2 for the Gen 3 product portfolio, gross margin is projected to rise to 35% - 40%, and the company anticipates full-year Auto EBITDA of above 5%.

Analyst Caution

Despite the positive results, some analysts advise caution. Concerns persist regarding Ola Electric's market share and past optimistic guidance. The electric vehicle industry has evolved from a fast growth phase to a steady 20%+ annual growth, coupled with reduced government incentives and increased competitive intensity.

Conclusion

While Ola Electric's Q1 results show promising signs of improvement and progress towards profitability, the company faces the challenge of converting the "middle mass" customers to EVs. As the industry dynamics shift, Ola Electric's strategy pivot towards balanced profitable growth will be crucial in determining its long-term success in the competitive EV market.