EV stock under Rs 50 Surge Over 15% as company announces its Q1 FY26 Results: Revenue Increases By 35.5% QoQ, Auto Business Turns EBITDA Positive

Ola Electric Mobility Limited has announced its Q1 FY26 financial results, reporting a strong performance for the quarter ended June 30, 2025. The company posted a 35.5 per cent quarter-on-quarter rise in revenue, reaching Rs 828 crore, compared to Rs 611 crore in Q4 FY25. Vehicle deliveries also surged by 32.7 per cent to 68,192 units from 51,375 units in the previous quarter, reflecting higher market adoption and strong customer demand.

One of the major highlights of the quarter was the auto segment turning EBITDA positive in June 2025. The company’s gross margin improved significantly to 25.6 per cent from 13.8 per cent in the prior quarter. As a result, the auto segment EBITDA moved from -90.6 per cent to -11.6 per cent. Consolidated EBITDA stood at -28.6 per cent, showcasing better cost control and operational efficiency.

The turnaround was supported by “Project Lakshya,” Ola’s cost optimisation initiative. The company successfully reduced monthly auto operating expenses from Rs 178 crore to Rs 105 crore. Total consolidated operating expenditure is now at Rs 150 crore per month, with a plan to reduce it further to Rs 130 crore during FY26. Operating cash flow for the auto business was nearly neutral, and Free Cash Flow improved to -Rs 107 crore from -Rs 455 crore in Q4 FY25.

Ola’s newly launched Gen 3 scooters accounted for 80 per cent of total sales in Q1, which helped enhance margins and lower warranty claims. MoveOS+ software adoption jumped from 2 per cent to nearly 50 per cent quarter-on-quarter. The phased rollout of the Roadster X motorcycle is underway and is now available across 200 stores, with more locations expected during the festive season.

In terms of technology, the company plans to begin production using its in-house Bharat 4680 battery cells by Navratri. Ola aims to fully utilise its 1.4 GWh battery capacity by the end of FY26 and expand it to 5 GWh by FY27. The company is also set to deploy Heavy Rare Earth (HRE) free motors from Q3 FY26, along with in-house dry coating technology to reduce long-term battery conversion costs.

Ola Electric continues to lead the EV two-wheeler segment with innovations like ABS-equipped models, including the S1 Pro+. An in-house ABS solution is also under development and is expected to be ready by January 2026 in compliance with upcoming regulations.

For FY26, the company forecasts vehicle sales of 3.25 to 3.75 lakh units and revenue between Rs 4,200 crore to Rs 4,700 crore. With Production Linked Incentive (PLI) benefits beginning in Q2 for Gen 3 scooters, Ola expects gross margins to improve to 35–40 per cent and auto EBITDA to exceed 5 per cent for the full year.

Following the earnings announcement, Ola Electric’s stock surged by 15 per cent to hit an intraday high of Rs 45.94 on Monday. As of 11:42 a.m. IST, the stock was trading at Rs 40.92, up 2.86 per cent. Despite the recent gain, the stock has declined by 46.03 per cent over the past 12 months and is down 45.27 per cent since its IPO listing.

Ola Electric operates from its Ola Futurefactory in Tamil Nadu and conducts in-house R&D across India, the UK, and the US. The company follows a direct-to-consumer model and has a network of over 4,000 stores, making it the largest company-owned automotive retail network in India.

Disclaimer: The article is for informational purposes only and not investment advice.