Ola Electric shares jump 17% on strong FY26 guidance, improved sequential performance in Q1

Shares of Ola Electric jumped 17 percent in Monday's trading session after the company forecast improved gross margins for fiscal 2026 after posting a narrower sequential loss for the first quarter, helped by stronger sales of its newer, more cost-efficient scooter models.

The electric two-wheeler posted a consolidated net loss of Rs 428 crore in Q1FY26, narrowing it from Rs 870 crore in Q4FY25. However, the loss widened year-on-year (YOY) from Rs 347 crore in Q1FY25.

The Bengaluru-based firm said its revenue from operations for the April-June quarter rose 35.5 per cent to Rs 828 crore, as against Rs 611 crore during the quarter ended March 31, 2025.

Shares of Ola Electric rose nearly 17.31 percent to an intraday high of Rs 46.85 per share on the NSE, after the April - June quarter results, at around 1:30 p.m. The stock has gained after five days of consecutive fall.

Ola Electric Q1FY26 results: Net loss widens to Rs 428 crore, revenue down 50% YoY

The company said it 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 percent quarter-on-quarter.

It added that it's auto business turned EBITDA positive in June, on the back of strong gross margins owing to the company's vertical integration strategy. The company also expects the auto business to remain EBITDA positive from Q2 onwards, it noted.

The newly introduced Gen 3 scooters accounted for 80 per cent of total scooter sales during the quarter, it stated. These scooters have not only delivered better margins but have also significantly reduced warranty claims, reflecting the company's ongoing engineering improvements, it added.

The SoftBank-backed firm's cost optimisation initiative, Project Lakshya, has driven significant operating efficiencies, reducing monthly auto operating expenses from Rs 178 crore to Rs 105 crore, it said in a statement.

The company added that it has developed rare earth-free motors, which are set to be deployed starting the December quarter. Ola said it accelerated the program in April following global rare earth supply cuts.Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.