Ola Electric Mobility (OLAELEC) Q1 25/26 earnings summary

Executive summary

• Transitioned from aggressive market penetration to a balanced, profitable growth strategy, focusing on operational efficiency and margin improvement.

• Unaudited financial results for the quarter ended June 30, 2025, were approved by the board on July 14, 2025, covering both standalone and consolidated performance.

• Achieved a transformative quarter with Auto segment turning EBITDA positive in June, driven by Gen 3 platform and Project Lakshya OpEx reductions.

• Delivered 68,000 vehicles in Q1 FY26, with nearly all sales from scooters as motorcycle deliveries began in June.

• The company completed its IPO in August 2024, raising INR 5,275 crores, with proceeds allocated to capex, debt repayment, R&D, and growth initiatives.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was INR 828 crores, up from INR 611 crores in the previous quarter but down from INR 1,644 crores year-over-year.

• Gross margin reached 26% (22%+ without incentives), with gross profit per vehicle at INR 31,000.

• Consolidated net loss for the quarter was INR 428 crores, improving from a loss of INR 870 crores in the previous quarter but wider than the INR 347 crores loss year-over-year.

• Operational cash flows nearly neutral for the quarter; Automotive business expected to be free cash flow positive by FY26 year-end.

• Cash balance at quarter-end was INR 3,200 crore; gross debt (excluding working capital) at INR 2,000 crore, being paid down over two years.

Outlook and guidance

• Targeting 325,000–375,000 vehicle sales for FY26, with 15–20% expected from bikes.

• Management expects to continue as a going concern, supported by available cash, projected operating cash flows, credit limits, and planned debt raising.

• Board approved raising up to INR 1,700 crores via non-convertible debentures and other debt securities to support operations.

• Automotive business to be free cash flow positive by year-end; Cell business to break even at 5 GWh capacity.