Ola Electric shares surge 17% despite ₹428cr Q1 loss—Here's why
What's the story
Ola Electric Mobility's shares surged by 17% to ₹46.67 today, after the company announced that its auto segment achieved EBITDA positivity in June 2025. This is a major operational milestone for the electric vehicle manufacturer. The company's auto segment delivered 68,192 vehicles in Q1FY26, meeting its guidance while gross margins expanded sharply to 25.6%, up from 13.8% in the previous quarter.
Financial strategy
Cost optimization program 'Lakshya' shows positive results
Ola Electric's cost optimization program "Lakshya" has successfully cut monthly auto operating expenses to ₹105 crore from ₹178 crore in Q3FY25. The consolidated EBITDA margin improved to -28.6% from -113.9% in Q4FY25, while the auto EBITDA margin stood at -11.6%. The company expects its auto segment will turn EBITDA positive in Q2FY26 and generate operating cash flow later this fiscal year.
Sales forecast
The company has set ambitious targets for FY26
Ola Electric has set ambitious targets for FY26, expecting vehicle sales of 3.25-3.75 lakh units and revenue between ₹4,200-4,700 crore. The management expects exit gross margins to reach 35-40% with PLI benefits translating to ₹40,000-45,000 per vehicle. The company's Gen 3 scooters now account for 80% of sales and have shown improved performance with warranty claims being 60% lower than Gen 2 products.
Expansion plans
Ola Electric is pushing its vertical integration strategy
Ola Electric is pushing its vertical integration strategy with plans to launch vehicles with in-house 4680 cells by Navratri in Q2FY26. The gigafactory project has a total budget of ₹2,800 crore, of which ₹1,500 crore has already been invested. Sunny Agrawal from SBI Securities said the market will closely watch the auto segment's performance and gigafactory ramp-up against guidance in this competitive environment.