Has Ola Electric's Net Loss Widened to Rs 428 Crore in Q1 FY26?
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Synopsis
Ola Electric faces tough times as its net loss escalates to Rs 428 crore in Q1 FY26, reflecting a staggering 49.6% drop in revenue. The company aims to stabilize operations and prepare for future growth despite challenges in e-scooter deliveries and share price declines. Will Ola Electric recover in the coming fiscal year?
Key Takeaways
- Net loss of Rs 428 crore in Q1 FY26.
- Revenue dropped by 49.6% year-on-year.
- E-scooter deliveries decreased to 68,192
- EBITDA loss increased to Rs 237 crore.
- Future vehicle volume projections: 3,25,000-3,75,000.
New Delhi, July 14 (NationPress) Under the leadership of Bhavish Aggarwal, Ola Electric, a prominent player in the electric two-wheeler sector, has reported a consolidated net loss of Rs 428 crore for Q1 FY26. The company's revenue from operations has significantly dropped to Rs 828 crore, marking a staggering 49.6 percent decline compared to Rs 1,644 crore in the same quarter last fiscal year.
The net loss has increased by nearly 30 percent year-on-year from a net loss of Rs 347 crore in Q1 FY25, as indicated in the stock exchange filing.
Year-on-year e-scooter deliveries have also suffered, decreasing from 1,25,198 in Q1 FY25 to 68,192 in Q1 FY26.
The EBITDA loss was reported at Rs 237 crore, up from Rs 205 crore year-on-year.
Ola Electric anticipates FY26 volumes to be around 3,25,000-3,75,000 vehicles, with revenues expected in the range of Rs 4,200-Rs 4,700 crore.
“In this phase, our objective is to consolidate and institutionalize our operations, enhance our margins, and prepare for the next growth phase driven by our expanding product lineup,” the company stated in a letter to shareholders.
Additionally, the company has developed in-house solutions for potential risks, including rare earth magnets and the Anti-lock Braking System (ABS).
Ola Electric Mobility's shares were trading between Rs 40-Rs 42 in early trading. Recently, the share price hit a 52-week low of Rs 41.82, significantly lower than its 52-week high of Rs 157.4. Over the past six months, the share price has plummeted by over half, specifically 51.25 percent, and it has decreased by 53.9 percent year-on-year.
In Q4 FY25, Ola Electric recorded a net loss of Rs 870 crore, more than double the Rs 416 crore loss from the same quarter last year. Revenue from operations also fell by 62 percent year-on-year, dropping to Rs 611 crore.
Point of View
It is imperative to convey that Ola Electric's widening losses are a significant concern for stakeholders and the electric vehicle industry. The company's focus on consolidating operations and enhancing margins is a necessary step, but the persistent decline in revenue and share value raises questions about its long-term viability. The market must watch closely how Ola Electric navigates these challenges.
NationPress
14/07/2025
Frequently Asked Questions
What is the net loss reported by Ola Electric for Q1 FY26?
Ola Electric reported a consolidated net loss of Rs 428 crore for Q1 FY26.
How much did Ola Electric's revenue decline year-on-year?
Ola Electric's revenue from operations declined by 49.6% year-on-year, dropping to Rs 828 crore.
What are the expected vehicle volumes for Ola Electric in FY26?
Ola Electric expects FY26 volumes to be around 3,25,000 to 3,75,000 vehicles.
What measures is Ola Electric taking to mitigate risks?
The company has developed in-house solutions for risks associated with rare earth magnets and Anti-lock Braking Systems.
How has Ola Electric's share price performed recently?
Ola Electric's shares recently hit a 52-week low of Rs 41.82, reflecting a significant decline of over 51% in the last six months.
