Ola Electric Q1 FY26 Earnings Results: ₹428 Crore Loss, Revenue Down 50%

Electric two-wheeler maker Ola Electric reported a consolidated net loss of ₹428 crore in Q1FY26. This is higher than the ₹347 crore loss in the same quarter last year but much lower than the ₹870 crore loss recorded in Q4FY25.

Ola Electric Revenue Drops Nearly 50%

The company’s revenue for the April–June quarter dropped significantly to ₹828 crore, marking a 49.6% fall from ₹1,644 crore reported in Q1FY25.

The EBITDA loss for Q1FY26 came in at ₹237 crore, higher than the ₹205 crore loss recorded during the same quarter the previous year.

Ola Electric Share Price Rises After Results

Despite the weak YoY numbers, Ola Electric share price rose almost 6% to ₹42.06 on the BSE after the results were announced.

Auto Business Turns EBITDA Positive

Ola said its auto business achieved positive EBITDA in June, helped by better gross margins due to the company’s vertical integration strategy.

The company highlighted that its cost-saving initiative, Project Lakshya, has improved efficiency by bringing down monthly auto operating expenses from ₹178 crore to ₹105 crore.

Operating Expenses and Cash Flow Improve

Consolidated operating expenses now stand at ₹150 crore per month, and Ola aims to cut this further to ₹130 crore during FY26.

The company also reported that operating cash flow for the auto business was almost neutral in Q1, while free cash flow improved to ₹107 crore, a big jump from negative ₹455 crore in the previous quarter.

Ola Electric Previous Year’s Performance

In the March quarter, Ola’s net loss had widened to ₹870 crore from ₹416 crore a year earlier. For Q1FY25, the company reported a 32% rise in revenue to ₹1,644 crore from ₹1,243 crore the year before.

Stake Reductions and Funding Plans

In June 2025, it was reported that Hyundai Motor and Kia Corp reduced their stakes in Ola Electric due to ongoing losses and shrinking market share.

Additionally, Ola Electric is working with bankers to raise ₹1,000–1,200 crore ($120–140 million) in private credit to refinance existing loans.

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Conclusion

Although Ola Electric’s revenue dropped nearly 50% and losses widened YoY, the company showed clear signs of operational improvement with reduced costs, positive EBITDA in the auto segment, and better cash flow. The focus now remains on further cost reduction and strengthening the balance sheet as competition intensifies in India’s electric two-wheeler market.

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