Ola Electric Q1FY26 preview: Here's what you can expect
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According to estimates by Kotak Institutional Equities, Ola Electric's adjusted net loss for the quarter is likely to widen to ₹459 crore, up from ₹324 crore in Q1FY25 and ₹374 crore in the preceding March quarter. Revenue is projected at ₹685 crore, marking a sharp 58 per cent year-on-year drop and a 27 per cent decline quarter-on-quarter.
Sharp Decline in Sales and Margins
The brokerage expects Ola's Q1 volumes to fall 52 per cent year-on-year to 60,000 units, and by 20 per cent on a sequential basis. This drop in volume, coupled with lower average selling prices (ASPs) due to a higher mix of mass-market electric scooters, is expected to hit revenue and profitability hard.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) losses are pegged at ₹289 crore, widening from ₹205 crore in Q1FY25 and ₹264 crore in Q4FY25. Margins are also expected to contract to -42 per cent, compared to -12.5 per cent in the same period last year and -28.3 per cent in Q4FY25.
Stock Under Pressure
Ola Electric's stock has remained under pressure since its disappointing Q4FY25 results, where it reported a net loss of ₹870 crore and a 62 per cent drop in revenue to ₹611 crore. Vehicle deliveries in that quarter fell to 51,375 units from 1.15 lakh a year ago.
Despite some improvement in gross margins to 19.2 per cent—driven by higher adoption of the Gen-3 platform—the company's auto segment EBITDA margin slipped to -78.6 per cent, and its consolidated EBITDA margin stood at a steep -101.4 per cent.
For FY25, Ola delivered 3.59 lakh vehicles (up from 3.29 lakh in FY24) and recorded an adjusted revenue of ₹4,665 crore. However, the full-year EBITDA margin remained negative at -34.6 per cent.
Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio, said the stock is trading at an all-time low and exhibits a bearish setup, with the Relative Strength Index (RSI) below 30—indicating oversold territory. 'Unless the stock reclaims ₹45, any recovery should be viewed as a selling opportunity, with a downside target of ₹38,' he said.
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