Ola Electric has posted strong financial and operational performance for the quarter ended June 30, 2025 (Q1 FY26), with revenue from operations reaching ₹828 crore—a 35.5% increase from ₹611 crore in the previous quarter. The company delivered 68,192 electric two-wheelers during the quarter, up 32.7% from 51,375 units in Q4 FY25. June also marked a key milestone as the auto segment turned EBITDA positive, driven by higher gross margins achieved through in-house manufacturing and supply chain integration.
The company’s financial turnaround was evident in its significantly improved auto business EBITDA, which narrowed to -11.6% in Q1 FY26, compared to -90.6% in Q4 FY25. June was the first month with a positive EBITDA for the auto segment. At the consolidated level, EBITDA improved to -28.6%.
Under its cost-efficiency program, Project Lakshya, Ola Electric reduced its monthly auto operational expenses from ₹178 crore to ₹105 crore. Total monthly expenditures now stand at ₹150 crore, with further reductions aimed at reaching ₹130 crore over the course of FY26. Operating cash flow for the auto division was nearly break-even, and Free Cash Flow improved sharply from -₹455 crore in Q4 to -₹107 crore this quarter.
Customer adoption continues to grow, with the Gen 3 electric scooters making up 80% of total scooter sales in Q1. These models not only deliver stronger margins but also reduce service issues, thanks to product upgrades and improved reliability.
The phased launch of Ola’s Roadster X electric motorcycles is ongoing, with availability now expanded to 200 retail locations across India. MoveOS+, the company’s advanced vehicle software, has seen a sharp increase in adoption—now used by nearly 50% of new customers, up from just 2% last quarter.
The company is preparing to launch vehicles powered by its domestically developed 4680 Bharat Cell this Navratri. Ola plans to fully utilise its 1.4 GWh installed cell production capacity by the end of FY26, and scale up to 5 GWh capacity by FY27.
In parallel, Ola has engineered new Heavy Rare Earth (HRE)-free motors, set for production rollout in Q3 FY26. These advancements, supported by robust in-house R&D and vertical integration, are intended to lower manufacturing costs and increase technological independence. Additionally, Ola’s dry coating technology for battery cells contributes to cost efficiency and process innovation.
Ola Electric remains ahead in product readiness within the EV two-wheeler market. It is the only brand currently offering ABS-enabled electric scooters (S1 Pro+). Development of a proprietary ABS system is underway and is expected to be production-ready by January 2026, in time for new safety regulations.
The company projects vehicle sales between 3.25 lakh and 3.75 lakh units for FY26, with revenue expected in the range of ₹4,200 to ₹4,700 crore. With Production Linked Incentive (PLI) benefits taking effect from Q2 for the Gen 3 line-up, gross margins are forecast to rise to 35–40%. Ola Electric anticipates maintaining a positive auto EBITDA throughout the remainder of the fiscal year, with full-year profitability above 5%.
Ola Electric is India’s largest electric vehicle manufacturer, focused on end-to-end development of electric mobility solutions. Its Futurefactory in Tamil Nadu is one of the country’s largest EV production hubs, while the Battery Innovation Centre in Bengaluru leads advanced battery cell R&D. Ola’s innovation teams span across India, the UK, and the US, driving development of core EV technologies. With over 4,000 retail stores and a robust digital platform, the company operates India’s most extensive EV distribution network under a fully-owned retail model.
