Ola Electric Share Price Soars 22% in 2 Days Despite ₹428 Crore Loss

Ola Electric share price rallied for a second day on July 15, rising 22% in just 2 sessions. This sharp gain came even though the company posted a ₹428 crore loss for the first quarter of FY26.

Ola Electric Q1 FY26 Earnings Results

On Monday, Ola Electric Mobility announced a consolidated net loss of ₹428 crore for the quarter ended June 30, 2025. This is a 23% increase compared to a ₹347 crore loss in the same quarter last year.The company’s revenue fell nearly 50% year-on-year to ₹828 crore, down from ₹1,644 crore in Q1 FY25.

Ola Electric said that its auto business almost reached operating cash flow breakeven in Q1. Free cash flow also improved to -₹107 crore in the auto business and -₹282 crore overall.

Total expenses were cut by 42.4% year-on-year to ₹1,065 crore from ₹1,849 crore last year. However, the EBITDA margin worsened, standing at -28.6% compared to -12.5% in the same period the previous year.

Future Outlook

The company expects positive operating cash flow for the auto business later in FY26. Ola also said that future investments will mainly go into research and development rather than new production capacity.

Positive Signs in Margins and Operations

• The automotive segment turning EBITDA-positive in June
• Record gross margin of 25.6%, helped by vertical integration and cost discipline under Project ‘Lakshya’
• Introduction of rare-earth-free motors, reducing long-term supply chain risks

Ola Electric Share Price Performance

On July 15, 2025, Ola Electric Mobility share priceopened at ₹48.40, hit a high of ₹48.90 and a low of ₹43.60, before closing at ₹44.00, down 6.52% from the previous close of ₹47.07. The stock’s 52-week high was ₹157.40 on August 20, 2024, and its 52-week low was ₹39.60, recorded just a day earlier on July 14, 2025.

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Conclusion

Despite reporting a larger year-on-year loss and sharply lower revenue, Ola Electric’s recent improvements in cash flow, gross margins, and operational efficiency have boosted investor confidence. The company’s clear guidance for FY26 profitability, strong cost control measures, and focus on innovation like rare-earth-free motors have helped offset concerns about declining volumes and industry competition. 

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