Ola Electric losses widen to Rs 428 crore in Q1 FY26 YoY; Auto, cell sales plunge 94.7%

Ola Electric's losses widened in the first quarter of fiscal year 2026. The Bengaluru-headquartered company registered a loss of Rs 428 crore in Q1 FY26 compared to Rs 347 crore in the corresponding quarter last fiscal. The auto segment losses increased to Rs 261 crore in the April to June quarter (Q1) in FY2026 as against Rs 209 crore in Q1 FY25. While the cell segment's losses climbed to Rs 69 crore in Q1 FY26, as against Rs 37 crore.

Ola Electric Mobility's auto and cell sales dropped to Rs 80 crore in Q1 FY26--a 94.7% decline year-on-year. In FY25, the company clocked sales of Rs 1,516 crore in Q1. Additionally, the production-linked incentive also declined from Rs 128 crore in Q1 FY25 to Rs 20 crore in Q1 FY26. Overall, Bhavish Aggarwal's company's revenue has witnessed a massive drop of 49.6% to Rs 828 crore during the April to June period in the current fiscal year. The company had clocked a revenue of Rs 1,644 crore in the corresponding quarter of the previous fiscal.

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However, Ola Electric has slashed its operating expenses marginally from Rs 508 crore in Q1 FY25 to Rs 451 crore in Q1 FY26. The selling, general and administrative expenditure, comprising advertisement, marketing, salaries, travel, and admin expenses, climbed up from Rs 87 crore in April-June FY2025 to Rs 103 crore in Q1 FY26.

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss stood at Rs 237 crore in the first quarter of FY26 compared to Rs 205 crore.

The company's deliveries have also dropped from 1,25,198 units in Q1 FY25 to 68,192 units in Q1 FY26, while the Vahan market share reduced to 19.6% from 48.6% in Q1 FY25.

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Ola Electric has projected a revenue to increase to Rs 4,200-Rs 4,700 crore in the full fiscal 2026. The company has anticipated PLI benefits to improve the auto gross margin.

"Q1 Auto GM of 25.6% was largely without PLI, and Q2 onwards we should get the PLI benefit too, leading our exit GM for FY26 to be around 35-40%," according to the company.

Besides, for Q2, the company has projected positive EBITDA and the auto business to generate operating cash flow later in FY26. While it has also forecasted the auto capex to increase to Rs 300 crore, including capitalized research & development.

The company added that it is well funded for the current fiscal year, as well as fiscal 2027, registering a cash balance of Rs 3,197 crore.