Ola Electric shares jump nearly 20% despite halved revenue, continued losses

BENGALURU: Shares of Ola Electric surged 19.75% on Monday to close at Rs 47.66, even as the company reported a sharp year-on-year drop in revenue and a consolidated net loss of Rs 428 crore for the quarter ended June 30, 2025. The stock hit an intraday high of Rs 47.76 on the NSE, up from its previous close of Rs 39.80.

The rally came despite the company's revenue from operations halving to Rs 828 crore in Q1 FY26, from Rs 1,644 crore in the same quarter last year. On a sequential basis, revenue rose 35.5% from Rs 611 crore in Q4 FY25.

Ola’s net loss narrowed from Rs 870 crore in the previous quarter, while Ebitda losses reduced to Rs 237 crore from Rs 695 crore. Vehicle deliveries for the quarter stood at 68,192 units, up 32.7% sequentially, aided by stronger demand for its Gen 3 scooter portfolio, which now accounts for over 80% of total sales.

The company’s auto segment turned Ebitda positive in June, its first profitable month since launch. Gross margins in the auto business improved to 25.6% in Q1, from 13.8% in Q4, helped by internal cost controls, vertical integration and lower warranty costs.

Despite the top-line contraction, investor sentiment appeared buoyed by the company’s operational turnaround efforts. On a post-earnings analyst call, founder and CEO Bhavish Aggarwal said Ola was “structurally profitable” at the auto level and would remain Ebitda positive from Q2 onwards.

He also cited cost-cutting measures under Project Lakshya that brought down monthly opex in the auto business from Rs 178 crore to Rs 105 crore. Free cash flow improved to -Rs 107 crore from -Rs 455 crore last quarter.

Ola said it is on track to commercially deploy its in-house Bharat 4680 cell by the Navratri festival and launch High-Voltage Rare-Earth-free (HRE) motors in Q3. The company reaffirmed its FY26 guidance of 3.25-3.75 lakh vehicle sales and revenue of Rs 4,200-4,700 crore, with auto Ebitda expected to exceed 5% for the full year.

The adoption of its paid software layer, MoveOS+, rose to nearly 50% of new users in Q1, up from 2% in Q4. “This is a true digital business within our hardware business,” Aggarwal told analysts, projecting multi-hundred crore topline potential from software in the coming years.


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