Ola Electric shares jump 18% despite loss in Q1: Here's why the stock surging

Ola Electric said it delivered 68,192 vehicles in Q1 FY26, marking a 32.7 per cent quarter-on-quarter increase.

Published on: Jul 14, 2025, 17:33:28 IST

By HT News Desk

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Shares of Ola Electric surged over 17% on Monday after the company reported a narrower consolidated net loss of ₹428 crore for Q1 FY26, compared to ₹870 crore in the previous quarter, driven by stronger sales of its newer, more cost-efficient scooters.

A man walks past the logo of Ola Electric during a press conference ahead of it's IPO launch in Mumbai, India, July 29, 2024. (Reuters)

The stock rose as much as 18.27 per cent to an intraday high of ₹47.07 on the NSE after the market closed, rebounding after several months of decline. Recently, the stock was trading at an all-time low of ₹39.6.

The sudden surge comes as Ola Electric on Monday reported a 35.5 per cent jump in revenue from operations for the April–June quarter of FY26, reaching ₹828 crore, up from ₹611 crore in the previous quarter ending March 31, 2025, reported news agency PTI.

The Bengaluru-based electric vehicle manufacturer said it delivered 68,192 vehicles in Q1 FY26, marking a 32.7 per cent quarter-on-quarter increase compared to 51,375 units in Q4 FY25.

The company announced that its auto business turned EBITDA positive in June 2025, citing strong gross margins driven by its vertical integration strategy.

Operating cost efficiency driven by Project Lakshya

Ola Electric attributed significant operational efficiencies to its cost optimisation initiative, Project Lakshya. The company said monthly auto operating expenses were reduced from ₹178 crore to ₹105 crore.

“Consolidated operating expense now stands at ₹150 crore per month, and further reduction to ₹130 crore a month is targeted through FY26,” the company said in a statement, cited by news agency PTI.

Looking ahead, Ola Electric expects to sell between 3,25,000 and 3,75,000 vehicles in FY26, generating revenue between ₹4,200 crore and ₹4,700 crore.

“With Production-Linked Incentive (PLI) benefits beginning from Q2 for the Gen 3 product portfolio, gross margin is projected to rise to 35-40 per cent, and the company anticipates full-year auto EBITDA of above 5 per cent,” the statement said.

The company also expects the auto business to remain EBITDA positive from Q2 onwards.

Ola Electric said its Gen 3 scooters, launched recently, accounted for 80 per cent of total scooter sales in Q1.

“These scooters have not only delivered better margins but have also significantly reduced warranty claims, reflecting the company's ongoing engineering improvements,” it said.

(With PTI inputs)

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