Mumbai: Shares of Ola Electric surged 17 percent in Monday’s trading session after the company announced a strong FY26 forecast and reported improved sequential performance for the first quarter. The electric two-wheeler maker posted a consolidated net loss of Rs 428 crore in Q1 FY26, significantly narrowing from Rs 870 crore in the previous quarter (Q4 FY25), though the loss was higher year-on-year compared to Rs 347 crore in Q1 FY25.
Ola Electric reported revenue from operations of Rs 828 crore for the April–June quarter, marking a 35.5 percent increase from Rs 611 crore in Q4 FY25. The company attributed the improvement to robust sales of its newer, cost-efficient Gen 3 scooter models. The number of vehicles delivered in Q1 FY26 stood at 68,192 units, up 32.7 percent quarter-on-quarter from 51,375 units in Q4 FY25.
Following the results, Ola Electric shares rose by 17.31 percent to an intraday high of Rs 46.85 on the NSE around 1:30 p.m., recovering after five consecutive days of decline. The company also announced that its auto business turned EBITDA positive in June, driven by strong gross margins and a successful vertical integration strategy. It expects the auto business to remain EBITDA positive from Q2 FY26 onwards.
Gen 3 scooters made up 80 percent of total sales during the quarter. These models have delivered better profit margins and significantly reduced warranty claims, showcasing Ola’s continuous improvements in engineering and product quality.
The company further highlighted its cost optimisation efforts through its Project Lakshya initiative, which reduced monthly auto operating expenses from Rs 178 crore to Rs 105 crore. Additionally, Ola Electric said it has accelerated development of rare earth-free motors, which are expected to be deployed starting the December quarter. This shift followed global supply constraints on rare earth materials that began impacting the industry in April.
Ola’s outlook for FY26 remains optimistic, with the company expecting sustained improvements in financial performance and margins through the rest of the fiscal year.
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