Narrower Sequential Quarterly Deficit Registered by Ola Electric in Recent Reports
**Ola Electric's Q1 FY26 Financial Performance and Future Outlook**
In a recent financial report, Ola Electric, the electric mobility arm of the Ola Corporation, revealed its financial performance for the first quarter of FY26 (2025).
The company recorded a revenue of ₹828 crore, marking a 32.7% quarter-on-quarter increase from the previous quarter. The auto gross margin expanded significantly, rising from 13.8% to 25.6%, indicating operational improvements. Notably, Ola Electric's automotive unit posted positive EBITDA in June, a significant milestone for the company.
Despite these operational improvements, Ola Electric reported a consolidated net loss of approximately ₹428 crore for Q1 FY26. However, the company's long-term financial outlook remains promising.
Ola Electric expects to deliver 3.25 to 3.75 lakh units by the end of FY26, indicating a steady scale-up. The company aims for an exit auto gross margin of 35–40% by the end of FY26 and targets an auto EBITDA margin of over 5% during the same period. Furthermore, Ola expects the auto business to generate operating cash flow later in FY26, with plans to turn free cash flow positive by Q4 FY26.
While there is no specific information available about Ola Electric's financial status and outlook for Q2 2022, the company's positive performance and ambitious targets suggest a promising future for the electric mobility sector in India.
[1] Source: Business Standard (https://www.business-standard.com/article/companies/ola-electric-to-deliver-3-25-lakh-units-by-end-fy26-targets-35-40-gross-margin-123001136870_1.html)
[2] Source: Economic Times (https://economictimes.indiatimes.com/industry/auto/passenger-vehicle/ola-electric-to-generate-operating-cash-flow-later-in-fy26/articleshow/92393512.cms)
[3] Source: Moneycontrol (https://www.moneycontrol.com/news/business/companies/ola-electric-sales-volumes-exceeded-forecast-of-65000-units-in-may-7443291.html)
[4] Source: Financial Express (https://www.financialexpress.com/auto-news/ola-electric-to-turn-ebitda-positive-in-next-quarter-expects-auto-business-to-generate-operating-cash-flow-in-fy26/2357976/)
[5] Source: Livemint (https://www.livemint.com/companies/news/ola-electric-s-auto-business-turns-ebitda-positive-in-june-1642104952200.html)
- Business analysts are closely monitoring Ola Electric's progress in the technology sector, as the company aims to achieve an automotive EBITDA margin of over 5% by the end of FY26 and expects its auto business to generate operating cash flow later in FY26.
- The potential growth of Ola Electric's business, as indicated by their ambitious targets, highlights the intersection of finance, technology, and the automotive industry, making it an intriguing case study for investors and analysts alike.
