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Ola Electric Mobility Q1 results: Loss widens 23%, revenue falls 50%
Revenue from operations slumped nearly 50 per cent to ₹828 crore, down from ₹1,644 crore a year ago. The steep decline in sales was partially offset by cost-cutting measures, with total expenses falling 42 per cent year-over-year to ₹1,065 crore.
The results highlight the challenges facing India's electric vehicle sector, as it grapples with softening demand and heightened competition, even as firms push to scale production and capture market share. Ola's market share is slipping amid rising competition from incumbents like Bajaj Auto and TVS.
While losses widened year-over-year, the company's net loss declined by more than 50 per cent on a quarterly basis. During the quarter under review, the company also reported a positive EBITDA.
'The company's auto business turned EBITDA positive in June, on the back of strong gross margins owing to the company's vertical integration strategy,' said the company in a statement.
Ola Electric delivered a total of 68,192 vehicles in Q1 FY26, compared to 51,375 units delivered in Q4 FY25, marking an increase of 32.7 per cent quarter-on-quarter (QoQ).
The auto segment EBITDA improved sharply to -11.6 per cent, compared to -90.6 per cent in Q4 FY25, with June marking the first EBITDA-positive month for the auto business. The consolidated EBITDA also saw a substantial recovery to -28.6 per cent from the previous quarter.
The company's cost optimisation initiative, Project Lakshya, has driven significant operating efficiencies, reducing monthly auto operating expenses from ₹178 crore to ₹105 crore. Consolidated operating expenses now stand at ₹150 crore per month, with further reductions targeted to approximately ₹130 crore per month through FY26. Operating cash flow for the auto business was nearly neutral in Q1, and free cash flow improved to -₹107 crore, a significant improvement from -₹455 crore in Q4.
Ola Electric's product roadmap continues to yield strong customer traction. The newly introduced Gen 3 scooters accounted for 80 per cent of total scooter sales during the quarter. These scooters have not only delivered better margins but have also significantly reduced warranty claims, reflecting the company's ongoing engineering improvements.
Meanwhile, 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. On the software front, MoveOS+ adoption surged to nearly 50 per cent in new customers (up from 2 per cent in Q4).
One of Ola Electric's most significant technological advancements is the in-house production of its 4680 Bharat Cell, which will begin powering vehicles starting this Navratri. The company expects that by the end of FY26, it will fully utilise the 1.4 GWh capacity, and install the remaining capacity to reach 5 GWh, scaling consumption to 5 GWh through FY27.
The company has also successfully developed Heavy Rare Earths (HRE)-free motors, which are scheduled for production deployment in Q3 FY26. These initiatives, enabled by the company's deep investment in vertical integration and R&D, are designed to reduce costs and enhance performance.
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Time of India
4 hours ago
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Time of India
13 hours ago
- Time of India
Ola, Uber & Rapido told to justify rates; RTA-approved fares to pinch pocket
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