After Rs 870 cr loss, Ola Electric eyes Q1 FY26 bounce with new bike, cost focus

For Ola Electric, the January to March quarter of FY25 has been complex. The company’s losses in Q4 of FY25 widened to ₹870 crore as against ₹416 crore in the year-ago quarter. “Q4 has been a bit of complex water with a lot of moving parts,” Bhavish Aggarwal, Chairman and MD, Ola Electric, said in a post-earnings analyst call on Thursday.

The company’s revenue from operations declined 62% year-on-year (YoY) to ₹611 crore during the quarter under review. Regulatory challenges and a lack of customer satisfaction plunged the company’s deliveries to 51,375 units from 115,000 units in Q4FY24. Additionally, the EBITDA margin for its auto business declined sharply to -78.6% versus -9.3% YoY.

However, in the April to June quarter of FY26, the company is anticipating a rebound. “If you look at our Q1 outlook, we are sharing a revenue forecast of about ₹850 crores, about 65,000 deliveries, and a gross margin of about 28 to 30%, which is much higher than Q4, so as we have been saying in our previous quarterly calls, our gross margin is trending upwards, especially with the introduction of our Gen Three platform,” said Aggarwal.

According to Aggarwal, the company’s focus now is to increase productivity in terms of both sales and stores for the next couple of quarters. The company has launched Project Lakshya and Project Vistaar to align with its growth plans.

“This becomes increasingly relevant as the key highlight for us in this quarter, which is that our bike comes into the market, and as we get our bikes into stores, we are seeing a lot of interest in the bikes from everybody, which is Project Vistaar. Project Lakshya is our cost reduction project,” says Aggarwal.

According to Aggarwal, the company’s auto business EBITDA breakeven point has come down to 25,000 units from an earlier 30,000 units. “So cost savings are on track, and as a result of both cost savings and our network project Vistaar, our breakeven point of our auto business segment EBITDA has now come down to almost 25,000 units from earlier what we had communicated to you, and this is because the gross margin is expanding on one side and then our cost is reducing on the other side,” said Aggarwal.