Ola Electric Soars 18% On FY26 Guidance, Auto Segment’s EBITDA Profitability

Shares of Ola Electric climbed almost 18% after the company reported its financials for the first quarter of the current financial year (Q1 FY26). 

The stock jumped 17.6% to INR 46.83 during intraday on the BSE despite the EV maker’s consolidated net loss widened to INR 428 Cr as against INR 347 Cr in Q1 2025. 

Sequentially, the Bhavish Aggarwal-led company narrowed its loss and saw a 50.8% decline from INR 870 Cr reported in the last quarter (Q4 FY25). 

Ola Electric’s revenue in Q1 FY26 also reduced 50% to 828 Cr from INR 1,644 Cr in the same quarter last year. However, on a quarter on quarter basis, its topline expanded 35.5% from INR 611 Cr in January-March quarter. 

The surge in its share price is likely to be driven by its auto business growth as it turned EBITDA positive in June 2025. The company’s auto gross margins improved to 25.6% in Q1 FY26 from 13.8% in Q4 FY25. 

FY26 started on a good note for the company as it saw significant improvement in its financial performance in the first quarter. The company’s vehicle delivery also increased by 32.7% to 68,192 vehicles delivered in the quarter under review as against 51,375 in the last quarter.  

The stock later pared some of its gains and was trading almost 14% up at INR 45.23 from its previous close on the BSE at 2:11 PM. At the time of writing, its market capitalisation stood at INR 19,963 Cr with more than 42 Cr shares exchanged hands. 

Notably, Ola Electric closed six out of the last seven sessions in the Red on the BSE. 

Ola Electric’s Performance In Q1 FY26 

Ola Electric in its official release said, “Q1 FY26 performance demonstrated strong financial discipline and execution.” 

The company’s auto segment EBITDA improved to -11.6%, compared to -90.6% in Q4 FY25 and June marked “the first EBITDA-positive month for the auto business.”

It also said that its consolidated EBITDA saw a substantial recovery to -28.6% from the previous quarter. 

In its release, Ola Electric noted that its most significant technological advancements is the in-house production of its 4680 Bharat Cell. 

“Bharat Cell will start powering vehicles starting this Navratri,” it said. 

Besides, Ola Electric claims to have successfully developed heavy rare earths (HRE) free Motors which are scheduled for production deployment in Q3 FY26.

In its outlook for the ongoing financial year, the EV manufacturer anticipates to sell 3,25,000 -3,75,000 vehicles and generate revenue of INR 4200 – 4700 Cr. 

“With Production Linked Incentive (PLI) benefits beginning from Q2 for Gen 3 product portfolio, gross margin is projected to rise to 35% – 40%, and the company anticipates full-year Auto EBITDA of above 5%,” the release said. 

Importantly, Ola Electric expects its auto business to remain EBITDA positive from Q2 onwards. 

Ola Electric closed the trading session 18.36% up at INR 47.13 on the BSE today.