Ola Electric shares rallied 20% on better-than-expected Q1 FY26 results. While losses narrowed and margins improved, analysts advise caution amid risks.
Mumbai, July 15, 2025 – Ola Electric Mobility’s stock skyrocketed nearly 20% on Monday after the EV major posted a better-than-expected performance in the first quarter of FY26. Despite narrowing losses and stronger margins, analysts continue to advise caution due to concerns over past projections, intense market competition, and volatile stock behavior.
📊 Ola Electric Q1 FY26 Results: Key Highlights
Shares of Ola Electric surged 19.75% to ₹47.66 on the NSE, rebounding from a 52-week low of ₹39.6. This marks the biggest single-day jump in eight months.
🚀 Key Q1 Highlights:
- Revenue: ₹828 crore (↓49.6% YoY, but ↑35.5% QoQ)
- Net Loss: ₹428 crore (↓from ₹870 crore in Q4 FY25)
- Ebitda Loss: ₹237 crore (↓from ₹695 crore QoQ)
- Vehicle Deliveries: 68,192 units (↑32.7% QoQ)
- Gross Margin (Auto): 25.6% in Q1 vs. 13.8% in Q4 FY25
The company’s strong operational turnaround efforts were evident as it achieved positive EBITDA in its auto segment for the first time in June.
⚙️ What Drove the Performance?
📌 Gen 3 Scooter Demand Drives Sales
The latest Gen 3 scooter portfolio accounted for over 80% of total deliveries, reflecting a successful product upgrade strategy. Increased customer traction and efficient cost structures contributed to a sequential rise in revenue and vehicle delivery volumes.
📈 Margin Improvement and Cost Control
- Ola’s Project Lakshya brought monthly auto business opex down from ₹178 crore to ₹105 crore.
- Gross margins improved through vertical integration and lower warranty expenses.
- Free Cash Flow improved from -₹455 crore to -₹107 crore.
“We are now structurally profitable at the auto level,” said CEO Bhavish Aggarwal. “Ebitda will remain positive from Q2 onwards.”
🔋 Future Roadmap and Technology Push
🔬 Battery Innovation and Software Monetization
- Bharat 4680 cell deployment expected by Navratri 2025.
- High-Voltage Rare-Earth-free (HRE) Motors to launch in Q3.
- Adoption of MoveOS+ paid software rose to 50% of new users, up from 2% in the previous quarter.
- Ola forecasts a multi-crore topline from its emerging software vertical.
📌 FY26 Guidance Reaffirmed
- Vehicle Sales Target: 3.25–3.75 lakh units
- Revenue Estimate: ₹4,200–₹4,700 crore
- Auto Ebitda Margin: Expected to exceed 5%
📉 Why Analysts Remain Cautious Despite the Rally
While Monday’s rally reflects renewed investor optimism, analysts remain cautious due to several structural and historical concerns:
🧠 Analyst Insights:
- Volatility Risk: Ola’s stock remains highly volatile and is considered suitable for high-risk investors only.
- Past Guidance: Analysts warn about Ola’s history of overly optimisti
c projections, raising skepticism over current targets. - Market Competition: Intense rivalry in India’s EV sector from Ather, TVS, and Hero MotoCorp could challenge Ola’s growth.
- Revenue Drop YoY: Despite sequential gains, the year-on-year revenue halved, indicating base-level concerns.
“While operational improvements are commendable, we need to see consistent quarterly delivery before rerating the stock,” said an analyst at Motilal Oswal.
📈 Stock Market Reaction
Ola Electric’s intraday high on Monday was ₹47.76, a 19.75% jump from the previous close of ₹39.80. This comes after the stock recently hit a 52-week low, signaling strong buying interest from retail investors.
However, brokerages haven’t updated ratings aggressively. Most maintain a ‘Hold’ or ‘Speculative Buy’ recommendation until Q2 results confirm sustainability.
❓ FAQs: Ola Electric Stock & Q1 Results
1. Why did Ola Electric stock jump 20%?
The stock surged due to improved Q1 results, narrowed losses, better margins, and higher vehicle deliveries, especially from the Gen 3 scooter lineup.
2. Is Ola Electric now profitable?
While still posting a net loss, Ola turned Ebitda positive in its auto segment for the first time, indicating structural improvements.
3. What are the risks for Ola Electric investors?
Volatility, aggressive competition, and past overestimations make the stock more suitable for high-risk investors.
4. What are Ola’s FY26 targets?
The company expects revenue between ₹4,200–₹4,700 crore and aims for 3.25–3.75 lakh vehicle sales with Ebitda margins above 5%.
5. What is the outlook for Ola’s battery tech?
Ola plans to commercially deploy its Bharat 4680 battery cell by Navratri 2025, promising better energy efficiency and cost savings.
📣 Call to Action
Do you think Ola Electric can maintain this momentum in FY26?
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