Ola Electric Mobility Limited has announced robust financial results for Q1 FY26, showing significant improvements across revenue, margins, and operational efficiency. The company’s revenue from operations surged by 35.5% quarter-on-quarter, reaching ₹828 crore compared to ₹611 crore in Q4 FY25. A key growth driver was the delivery of 68,192 electric vehicles, a 32.7% increase over the previous quarter.
Auto Segment Turns EBITDA Positive
A landmark achievement for the company was its auto business turning EBITDA positive in June 2025. The EBITDA margin for the auto segment improved sharply from -90.6% in Q4 FY25 to -11.6% in Q1 FY26. Consolidated EBITDA also showed a major recovery, improving to -28.6%. This shift was driven by the company’s focus on vertical integration and the success of cost-efficiency initiatives.
Cost Optimization through Project Lakshya
The company’s internal cost-saving initiative, Project Lakshya, contributed significantly to performance improvements. Monthly auto operating expenses (opex) reduced from ₹178 crore to ₹105 crore. The total consolidated opex now stands at ₹150 crore per month, with a target to reduce it further to ₹130 crore. Operating cash flow was nearly neutral for the auto business, while Free Cash Flow improved from -₹455 crore in Q4 to -₹107 crore in Q1.
Product Innovation and Customer Response
Ola’s product innovation continues to resonate with customers. The newly launched Gen 3 scooters contributed 80% of total sales in Q1 FY26, offering higher margins and fewer warranty claims. The MoveOS+ software saw a massive adoption leap, rising from 2% in Q4 FY25 to nearly 50% in Q1 FY26. Meanwhile, the Roadster X motorcycle has been rolled out in 200 stores nationwide and is expected to scale further during the festive season.
Breakthroughs in Battery and Motor Technology
Ola is also pushing boundaries in battery technology. It plans to roll out its in-house developed Bharat 4680 cell starting from Navratri (Q2 FY26). The company aims to fully utilize its 1.4 GWh capacity by the end of FY26 and scale to 5 GWh in FY27. Another major development is the creation of Heavy Rare Earths (HRE)-free motors, set for deployment in Q3 FY26, promising cost savings and greater supply chain security.
Future Outlook and Market Leadership
Looking ahead, Ola Electric projects sales of 3.25 to 3.75 lakh vehicles in FY26 and revenue between ₹4,200 crore and ₹4,700 crore. With PLI benefits for Gen 3 products kicking in from Q2, gross margins are expected to improve to 35–40%, and full-year auto EBITDA is projected to surpass 5%. The company also anticipates maintaining a positive EBITDA from Q2 onward.
Ola Electric’s Q1 FY26 results underscore its growing leadership in India’s EV two-wheeler segment. With continuous innovation, strong customer response, and sharp financial execution, the company is well on track to redefine sustainable mobility in India.
