Bhavish Aggarwal owned two wheeler electric bike manufacturer Ola has shared its business update for previous ended June quarter. The company has reported declines over net profit and EBITDA but improved sequencial revenue. As it quarterly business update came with improved sequencial revenue, Ola trading shares climbed on dalal street over 12 per cent on Monday.
Ola Electric Q1 Business Report
The company has announced that it posted a consolidated net loss of Rs. 428 crore for the Q1 FY 26, a 23% up compared to the Rs 347 crore loss recorded in the same quarter last year. The company’s revenue from operations also took a massive dip, nearly 50% year-on-year to Rs. 828 crore. The company also recorded decline in its delivery with 68,192 vehicles in Q1 FY26, down sharply from 1,25,198 units during the same period last year. The drop attributed to intense competition in the electric mobility space.
Revenue for previous quarter was almost reduced to half as compared to Rs. 1,644 crore in Q1 FY25, but it showed sequential growth from Rs. 611 crore recorded in the March quarter. The company attributed the steep drop in sales to intense competition in the electric mobility space.
Ola’s EBITDA loss widened to Rs. 237 crore for the June quarter, compared to Rs. 205 crore a year ago, pushing margins further into the red at -28.6%, against -12.5% previously. However, the auto segment showed remarkable progress with an EBITDA loss narrowing to -11.6% from a staggering -90.6% in Q4 FY25, with June being the first month the auto business turned EBITDA positive.
Despite these declines, the loss narrowed considerably from the previous quarter’s Rs. 870 crore loss, signaling some improvement in the company’s financial health.
Ola Electric is optimistic about the FY 26. The company is anticipating vehicle sales between 3,25,000 and 3,75,000 units and revenues to reach Rs 4,200 to Rs 4,700 crore. Ola highlighted strong demand for its latest Gen 3 scooters and the new Roadster bike, especially as the festive season approaches.
With Production Linked Incentive (PLI) benefits starting from Q2 for the Gen 3 lineup, Ola projects its gross margins will improve significantly to between 35% and 40%. The company is confident that the auto segment will remain EBITDA positive from the next quarter onward and aims for a full-year auto EBITDA margin exceeding 5%.
Ola Electric Share Price
As of 12:24 PM, the shares of Ola were trading at Rs. 44.65, a rise of nealy 12 percent from previous closing.
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