Ola Electric’s Growth Engine Stalls, PayU India Nets $35 Mn & More

Ola Electric’s Growth Engine Stalls

After a turbulent year, Ola Electric finally breathed a sigh of relief as its auto business turned EBITDA positive in June. However, intensifying competition and dwindling market share played a spoilsport, yet again, as the listed EV maker’s loss-making spree continued in Q1 FY26.

The OEM’s net loss zoomed 23% YoY to INR 428 Cr in Q1 FY26 while operating revenue crashed 50% YoY to INR 828 Cr. However, losses nearly halved from INR 870 Cr in Q4 FY25 while top line jumped 35.5% sequentially from INR 611 Cr.

Here are the key takeaways from Ola Electric’s Q1 FY26:

• Vehicle sales declined to 68,192 units versus 1.25 Lakh in Q1 FY25
• Market share dwindled to 19.6% against the record 48.6% in the year-ago quarter 
• Gross margin improved to 25.6% against 18.4% during the same period last fiscal
• Total expenses fell 42.4% YoY to INR 1,065 Cr

Profitability Takes Centre Stage: Notwithstanding the slowing sales, cofounder and MD Bhavish Aggarwal reiterated that the OEM is focussing on capital efficiency, vertical integration, and long-term sustainability. Notably, the last few months have seen Ola Electric scale up its sales and service network, bring the registration process in-house and even “redesign” its entire distribution model.

What’s In Store? With the OEM shifting gears to focus on innovation and juggling investor expectations, Ola Electric plans to manufacture a wide range of critical components in-house going forward and deploy heavy rare earth-free motors for production in Q3 FY26. The EV maker claims it’s on track to sell 3.25 Lakh to 3.75 Lakh units and generate a revenue of INR 4,200 Cr to INR 4,700 Cr in FY26. 

Nevertheless, even after a year full of controversies and concerns around vehicle quality, the stock closed the day 18% higher on the BSE after the company released its financial results. So, is the market bullishness justified even after Ola Electric’s mounting Q1 losses?

From The Editor’s Desk

PayU India Bags $35 Mn: The fintech major has bagged the capital from its parent Prosus to shore up its credit business. This comes weeks after the company once again postponed its IPO plans to focus on strengthening its business over the next 6–12 months.

Wiggles On Brink Of Collapse: The pet care startup is staring at a bleak horizon due to rising losses and failure to secure funding. Wiggles has not paid its employees since last year and has only two months of runway left. As it scrambles for capital, can Wiggles weather the storm?

Investors Line Up For Smartworks’ IPO: The coworking startup’s public issue was oversubscribed 13.45X, receiving biddings for 13.9 Cr shares against 1.04 Cr on offer. The IPO comprises a fresh issue of INR 445 Cr and an OFS component of up to 33.79 Lakh shares.

Groww’s Bid To Shore Up Revenues: The IPO-bound fintech has launched a new platform called ‘915’ to offer advanced tools, historical straddle charts and customisable dashboards to professional traders. The new subscription service will help Groww augment its top line.

Blinkit’s Inventory-Led Pivot: The Eternal-owned quick commerce major will switch to the new model from September 1. Following the move, the company will purchase goods directly from sellers, rather than merely stocking them. 

ArisInfra’s Q4 Show: The B2B construction procurement platform’s net loss declined 97% to INR 51 Lakhs in Q4 FY25 from INR 18.1 Cr in the year-ago quarter. Meanwhile, operating revenue increased 7% to INR 221.1 Cr from INR 206.4 Cr in Q4 FY24.

Meesho’s Many Revenue Pieces: The ecommerce unicorn is inching closer to profitability and has quietly built a stronghold in India’s non-metros. As it heads down the IPO route, will Meesho’s pricing and focus on unbranded offerings help it hold its ground against giants?

FY25 Startup Financial Tracker: Of the 28 startups that have released their financials for FY25, 18 ended the fiscal in the black, with a cumulative profit of INR 2,867.6 Cr. These new-age tech companies cumulatively reported an operating revenue of over INR 93,677 Cr.

Inc42 Startup Spotlight

Can Vaimanika Lead India’s Agri-Drone Revolution?

India’s ailing agriculture sector continues to face major challenges like inefficient farming methods, high labour costs and limited access to precision technology. To solve this problem with drones, Manish Dixit founded Vaimanika Aerospace in 2022.

Drones To The Rescue: The startup manufactures next-generation drone solutions for agriculture, surveillance, delivery, and defence. Its agri-drones can spray pesticides over an acre in under 7 minutes, using 90% less water. The startup also runs a DGCA-certified drone pilot training programme.

Innovation At Its Core: As drone adoption rises across sectors, Vaimanika is exploring innovations like hydrogen-powered drones to spur the adoption of its offerings and further fuel its profitability. Tapping into the booming UAV market, the startup claims to already service clients like UPL, IFFCO, and the Bihar government. 

Backed by the likes of Indriya Investments and Orange Ventures, it competes with the likes of listed ideaForge and IG Drones. With strong tech and future-ready R&D at its core, can Vaimanika Aerospace lead India’s agricultural drone revolution?