Chennai, July 14, 2025 — Ola Electric today announced its results for the quarter ended 30th June 2025. The company’s revenue from operations for Q1 FY26 stood at ₹828 Cr as against ₹611 Cr during the quarter ended 31st March 2025. Ola Electric delivered a total of 68,192 vehicles in Q1 FY26, as against 51,375 units delivered in Q4 FY25, marking an increase of 32.7% Q-o-Q. The company’s auto business turned EBITDA positive in June, on the back of strong gross margins owing to the company’s vertical integration strategy.
Financial Performance and Cost Efficiency
Ola Electric’s Q1 FY26 performance demonstrated strong financial discipline and execution. The auto segment EBITDA improved sharply to -11.6%, compared to -90.6% in Q4 FY25, with June marking the first EBITDA-positive month for the auto business. The consolidated EBITDA also saw a substantial recovery to -28.6% from the previous quarter.
The company’s cost optimization initiative, Project Lakshya, has driven significant operating efficiencies, reducing monthly auto opex from ₹178 Cr to ₹105 Cr. Consolidated opex now stands at ₹150 Cr per month, and further reduction to ~₹130 Cr/month is targeted through FY26. Operating cash flow for the auto business was nearly neutral in Q1, and Free Cash Flow improved to -₹107 Cr, a significant improvement from -₹455 Cr in Q4.
Product Innovation and Customer Adoption
Ola Electric’s product roadmap continues to yield strong customer traction. The newly introduced Gen 3 scooters accounted for 80% of total scooter sales during the quarter. These scooters have not only delivered better margins but have also significantly reduced warranty claims, reflecting the company’s ongoing engineering improvements.
Meanwhile, the rollout of Ola Electric’s Roadster X motorcycles is progressing in phases, with the product now available in 200 stores across India and set to scale further during the upcoming festive season. On the software front, MoveOS+ adoption surged to nearly 50% in new customers (up from 2% in Q4).
Battery Technology and Vertical Integration
One of Ola Electric’s most significant technological advancements is the in-house production of its 4680 Bharat Cell, which will begin powering vehicles starting this Navratri. The company expects that by the end of FY26, it would fully utilise the 1.4 GWh, and install the remaining capacity to get to 5 GWh and scale consumption to 5 GWh through FY27.
The company has also successfully developed Heavy Rare Earths (HRE) free Motors which are scheduled for production deployment in Q3 FY26. These initiatives, enabled by the company’s deep investment in vertical integration and R&D, are designed to reduce cost, enhance performance, and
improve supply chain resilience. Furthermore, the company’s in-house dry coating process for cell manufacturing helps lower conversion costs, providing long-term cost leadership.
Industry Leadership and Competitive Edge
The company continues to lead the EV two-wheeler market in technology readiness. It is currently the only major EV player offering ABS-equipped products (S1 Pro+). The company is in the process of developing its in-house ABS which would be ready by the transition timeline of January 2026.
FY26 Outlook
The company expects to sell between 3,25,000 to 3,75,000 vehicles and generate revenue of ₹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 company also expects the auto business to remain EBITDA positive from Q2 onwards.