Shares of Ola Electric rose nearly 9.5% on Monday to ₹43.60 on the Bombay Stock Exchange (BSE), despite the company’s consolidated net loss increased to ₹428 crore for the quarter ended June 2025. At first, the positive reaction surprised many investors, but it likely reflected growing optimism around the Bhavish Aggarwal’s future prospects.
Strong revenue gains and rising EV adoption have fueled the positive movement in Ola Electric stock price. While there is more than 49% fall in revenue (YoY) to ₹828 crore from ₹1,644 crore, the EV maker met its tip-line guidance and witnessed a sequential growth of over 35% from ₹611 crore in the first quarter of FY26.
In addition, the company’s EBITDA margin of auto segment also turned positive in June – for the first time by Ola Electric. It also reported its best gross margin so far, which stood at 25.6%. Ola’s better-than-expected margin performance has been fueled by the demand for its Gen 3 scooters, Roadster bikes, and the high-margin MoveOS+ software.
However, some of its key models have still not received government certification, crucial to unlock PLI-linked incentives. It has also shown improvement in reducing bill-of-materials costs and efficiencies driven by vertical integration, along with proprietary technology.
It has also reduced its auto operating expenses to ₹105 crore per month from ₹178 crore in Q3 FY25, under its cost-cutting program called ‘Lakshya’.
“There is more room to optimise opex over the coming quarters and we will be targeting bringing this down further to ₹130 crore a month (iso-volume) through FY26. Even with doubling the volume, consolidated opex at FY26 exit should remain around ₹150 crore a month,” the company said in an official statement.
Ola Electric significantly trimmed its Q1 expenses, which dropped 42.4% year-on-year to ₹1,065 crore. This helped narrow consolidated EBITDA losses to ₹237 crore, with the margin improving sharply to -28.6% from -113.9% in the prior quarter. The auto segment also showed progress, with EBITDA improving to -11.6%.
Despite the losses, the company reiterated its FY26 guidance of selling 3.25–3.75 lakh vehicles and generating revenue between ₹4,200 crore and ₹4,700 crore. Ola remains confident that its auto business will turn EBITDA-positive from Q2 onwards and exceed a 5% margin for the full fiscal year.
