Ola Electric Q1: Loss Widens 23% YoY To INR 428 Cr

SUMMARY

While Ola Electric’s loss jumped YoY, the company managed to trim down the net loss sequentially by almost 50% from INR 870

Its revenue from operation also dropped nearly 50% to INR 828 Cr in the quarter under review from INR 1,644 Cr in Q1 FY25

Sequentially, the revenue from operations jumped 35.5%

Bhavish Aggarwal-led Ola Electric’s consolidated net loss widened to INR 428 Cr in the first quarter of the financial year 2025-26 (FY26) up 23.3% from INR 347 Cr reported during the same period last year, on the back of underwhelming sales volume.

The company delivered 68,192 EVs in the quarter under review, which is much lower than around 1,25,198 EVs delivered in the same quarter last year.

On a quarterly basis, however, the loss nearly halved (50.8%) from INR 870 Cr reported during the January-March quarter.

This sequential recovery comes on the back of increase in sales from 51K units delivered in Q4 FY25.

Consolidated revenue from operations also dropped nearly 50% to INR 828 Cr in the quarter under review from INR 1,644 Cr in the same quarter last year. Sequentially, revenue jumped 35.5% from INR 611 Cr.

As per the company, its auto business has turned EBITDA positive in the month of June.

“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,” Ola Electric said in a statement.

Ola Electric earns revenue from two segments – Automotive and Cell.

Under its auto segment, Ola Electric includes sale of automobiles and services related to it. Whereas, under the cell segment, the company includes manufacturing and sale of battery cells. Majority of its revenue comes from the auto segment.

As per the company’s Q1 investor presentation, its market share started declining from the second quarter of the previous financial year (Q2 FY25), as its rivals TVS Motor, Bajaj Auto, and Ather Energy picked pace.

Currently, Ola Electric accounts for 19.6% market share, which once peaked at 48.6% in the same quarter last year.

Where Did Ola Electric Spend In Q1?

The EV company managed to trim down its total expenses YoY by 42.4% to INR 1,065 Cr in the quarter under review from INR 1,849 Cr in the June quarter of FY25.

Sequentially, also, the total expense declined 18.4% from INR 1,306 Cr.

Ola Electric posted a significant improvement in its consolidated EBITDA margin to -28.6% in the quarter under review, from 113.9% in the previous quarter (Q4FY25), on the back of reducing monthly auto operating expenses.

The company claims that the EBITDA margin for its auto segment stands at -11.6% in the June quarter this fiscal.

“Our cost reduction program Lakshya delivered on its targets to reduce our auto opex to INR 105 Cr a month from INR 178 Cr a month in Q3FY25. Consolidated opex now is INR 150 Cr a month. As a result Auto EBITDA has improved to -11.6% and consolidated EBITDA has improved to -28.6% from -113.9% in Q4,” the statement added.

The expenses incurred by the company in Q1 are as follows –

Cost Of Material Consumed – The company spent INR 441 Cr under this head as against INR 350 Cr in the previous quarter. However, this is a sharp decline from INR 1,311 Cr spent in the June quarter of the preceding year.

Employee Benefit Expense – The EV manufacturer managed to trim down this expense to INR 89 Cr from INR 123 Cr in Q1 FY25. Notably, there were speculations that the company was looking to lay off around 1,000 employees and contract workers to manage its growing loss.

Inventories- Ola Electric’s change in inventories of finished goods, stock-in-trade and work-in-progress stood at INR 153 Cr, surging multifolds from INR 12 Cr in Q1 FY25.

Sequentially, expenses under this head declined nearly 5% from INR 161 Cr.

The Future Roadmap

While the first quarter of the ongoing financial year reflected recovery from the previous quarter, Ola Electric stands far away from its numbers in the same quarter last year.

The company’s board recently approved a proposal to raise up to INR 1,700 Cr debt via non-convertible debentures (NCDs), term loans, working capital facilities, or any other eligible debt securities.

This debt raise has been approved to meet the company’s operation obligations amid continued operating loss.

“The group has negative cash flow from operations during the quarter ended 30 June 2025 amounting to INR 143 crores, which is primarily on account of continued operating losses and lower-than expected growth in sales volume, which requires the Group to consider mitigating circumstances, in order to support its operations and meet its continuing obligations,” the statement added.

Ola Electric recorded a gross margin of 25.6%, despite production-linked incentives contributing only 1.8%. Notably, the company is yet to receive certification for its Gen 3 scooters and bikes in the second and third quarter respectively.

“Our FY26 exit target is to have our GM in the range of 35-40% with PLI benefits, which will be around 40,000 – 345,000 per vehicle,” the statement added.

Besides, the EV giant is eyeing further reduction in the auto operating expense to INR 130 Cr/ a month through the ongoing financial year.

Ola Electric is also manufacturing its 4680 Bharat Cell, which will start fueling EVs by the mid of the second quarter of FY26.