Ola Electric sets ₹4,700 cr revenue goal for FY26 amid mounting challenges
Ola Electric
, currently grappling with a multifaceted crisis—weak financials, regulatory scrutiny, service backlash, and intensifying competition—has set a revenue target of ₹4,200–4,700 crore for FY26 and expects to avail
PLI benefits
in the second quarter of the fiscal year.
The
electric two-wheeler manufacturer
reported a 23 per cent year-on-year increase in its net loss to ₹428 crore for the June 2025 quarter, along with a nearly 50 per cent drop in revenue to ₹828 crore, marking a challenging period for the company that once led the market.
Aiming high for Q2
Despite the Q1 downturn, the Bengaluru-based company remains optimistic about a stronger Q2 performance. In its letter to shareholders, Ola cited multiple drivers for this expected turnaround.
The company aims to secure PLI (Production Linked Incentive) benefits in the current quarter, which it expects will help lift its exit gross margin (GM) for FY26 to around 35–40 per cent. 'Q1 Auto GM of 25.6 per cent was largely without PLI, and Q2 onwards, we should get the PLI benefit too. With operating costs largely flat, auto EBITDA should be 5 per cent+ for the whole year,' Ola stated.
Sales recovery & festive boost
In Q1 FY26, Ola sold 68,192 units. It aims to close the fiscal with sales volumes between 3,25,000 and 3,75,000 vehicles, largely driven by the upcoming festive season launch of its Gen-3 scooters and Roadster bikes.
However, recent media reports have added concerns. The Maharashtra government has reportedly ordered the shutdown of nearly 90 per cent of Ola's 450 showrooms in the state, due to lack of permits to store vehicles—a move that could potentially dampen sales momentum.
The company expects auto EBITDA to turn positive in Q2 and aims for operating cash flow generation from the auto business later in FY26. It has outlined a CAPEX of ₹300 crore for the remainder of the fiscal (including capitalised R&D).
'Our supply chain, engineering, and manufacturing teams continue to improve our product quality and BOM (Bill of Materials) cost, and these benefits should reflect in the P&L throughout the year,' the company said.
Ola clarified that it does not plan any major new product or manufacturing CAPEX this year. It expects Free Cash Flow (FCF) requirement for the auto business to be ₹400–500 crore for the remaining three quarters and hopes to turn FCF-positive by the end of FY26.
The company also reassured stakeholders that it is well-funded for the current and next fiscal year, with a cash balance of ₹3,197 crore as of the end of June 2025.
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