Ola Electric Share Price Jumps 16% After Q1 Results; Revenue Drops 50%, Company Eyes Strong FY26 Outlook
Ola Electric share price surged 16.08% on July 14, 2025, to ₹46.20 after the company announced its Q1 FY26 financial results. Despite a 50% YoY drop in revenue and widening net losses, investors responded positively to the EV manufacturer’s improved operational efficiency, better gross margins, and positive forward guidance.
Ola Electric Q1 FY26 Financial Highlights
India's leading electric two-wheeler maker, Ola Electric Mobility, reported a consolidated net loss of ₹428 crore in Q1 FY26, up from ₹347 crore YoY. Meanwhile, revenue from operations fell sharply by 49.6% YoY, to ₹828 crore from ₹1,644 crore in Q1 FY25. However, the company’s performance improved sequentially, compared to ₹611 crore revenue in the previous quarter (Q4 FY25).
The EBITDA loss also widened slightly YoY to ₹237 crore (vs ₹205 crore), but significantly improved from the ₹870 crore loss in the March quarter. The gross margin (GM) improved to 25.8%, up from 18.4% YoY, due to improved product quality and reduced Bill of Materials (BOM) costs with its Gen 3 product portfolio.
Ola Electric Share Price Movement and Technical Analysis
Before the earnings report, Ola Electric share price NSE hit a record low of ₹39.58. However, following the results, the stock rebounded sharply, closing at ₹46.20—up by 16.08% in intraday trading. Despite this recovery, technical experts suggest caution.
According to Anshul Jain from Lakshmishree Investments, the stock shows weakness on the charts. "For any meaningful reversal, Ola Electric share must close decisively above ₹45 on a weekly basis," he said, warning that the price might retest the ₹34 level if selling pressure continues.
Strong FY26 Outlook Fuels Optimism
Despite the Q1 dip in sales and earnings, Ola Electric maintains a strong growth forecast for the full fiscal year. The company expects to:
- Sell between 3.25 lakh to 3.75 lakh vehicles in FY26
- Generate revenue between ₹4,200 crore and ₹4,700 crore
- Achieve EBITDA profitability from Q2 FY26 onwards
- Improve gross margin to 35% - 40% aided by Production Linked Incentive (PLI) benefits
Ola’s strategic shift from aggressive expansion to profitable and sustainable growth has started to show results. “Our Gen 3 scooters contributed 80% of total sales and helped us reduce warranty claims and improve margins,” the company said.
Sales Volume and Market Competition
Ola Electric shares saw volatility due to declining sales volume—only 68,192 units were delivered in Q1 FY26, down from 1,25,198 units in Q1 FY25. The company attributed the drop to intensified competition from Bajaj Auto, TVS Motors, and Ather Energy.
Yet, Ola remains confident with its strategy. Its Roadster X motorcycles, currently available in 200 stores, are expected to perform strongly during the upcoming festive season.
EV Technology and Product Innovations
Ola Electric continues to invest in vertical integration and in-house technology development:
- 4680 Bharat Cell: In-house battery tech ready for deployment by Navratri
- Heavy Rare Earth-free motors: Mass production to begin in Q3 FY26
- MoveOS+: Ola's software suite driving high-margin revenue
These advancements are expected to reduce dependence on imports, cut costs, and enhance product differentiation in the competitive EV space.
Financial Planning and Liquidity Position
As of June-end, Ola Electric had ₹3,197 crore in cash reserves. The company plans to refinance some of its debt (excluding term loans) and expects to close these funding deals in Q2 FY26. Additionally, Ola’s Project Lakshya has helped slash monthly operating expenses from ₹178 crore to ₹105 crore.
Ola also highlighted that its cell manufacturing business will complete the 5 GWh installation this year, with 70% of the required ₹1,000 crore funded through term loans. The business is expected to become free cash flow positive by the end of FY27.
Investor Sentiment and Share Price Outlook
With the latest share price at ₹46.20, investors are cautiously optimistic. Many retail and institutional investors are tracking Ola closely, especially as the company approaches the festive season, a traditionally strong sales period in India.
Ola Electric share price today reflects market confidence in its turnaround strategy, despite past setbacks. Long-term growth prospects remain promising, supported by its EV innovation, expanding distribution, and focus on profitability.
Conclusion
While Ola Electric’s Q1 FY26 results show clear year-on-year pressure, the company has taken critical steps toward financial stability and operational excellence. The sharp rebound in the Ola Electric share price and upbeat FY26 projections suggest that Ola is gearing up for a major comeback.
As the EV industry evolves rapidly in India, Ola Electric is well-positioned with its Gen 3 products, in-house battery tech, and strategic cost control to lead the next phase of electric mobility growth.
Disclaimer: This article is for informational purposes only. Investors are advised to conduct their own research or consult a financial advisor before making investment decisions.
Join WhatsApp Group
