Ola Electric Mobility Ltd.OLAELEC₹46.06 +15.73%

Ola Electric Mobility Ltd. shares surged as much as 16% today, despite reporting a wider quarterly loss, due to a combination of operational improvements, better-than-expected margins, and signals of progress toward profitability.

While the company reported a net loss of ₹428 crore for Q1 FY26 (up 23% YoY), this loss narrowed significantly from the previous quarter’s ₹870 crore. Revenue also improved sequentially, rising to ₹828 crore from ₹611 crore in the March quarter, even though it was down approximately 50% YoY

The company’s auto segment achieved EBITDA positivity in June, marking a key operational milestone. Management highlighted that cash generation in this segment is now “within reach,” boosting investor sentiment.

Gross margin for the Auto in this quarter reached 25.6%, the best so far for the company. This was driven by reduced costs of materials, efficiencies from vertical integration, and sales of higher-margin products and software.

Ola Electric’s cost-cutting program, “Lakshya,” reduced auto operating expenses to ₹105 crore per month (down from ₹178 crore in Q3 FY25), helping to contain losses and improve outlook.

Investors responded positively to the operational improvements, margin gains, and the company’s guidance for further progress in the coming quarters. The stock’s surge came even as broader market indices were mixed, highlighting a specific shift in sentiment toward Ola Electric’s turnaround efforts.

Note: The stock price mentioned is as of 12:30 PM.

Disclaimer:

Investments in securities market are subject to market risks, read all the related documents carefully before investing. This is for informational purposes and should not be considered as recommendations.

Kindly refer to  https://share.market/ for more details.

PhonePe Wealth Broking Private Limited is a member of NSE & BSE with SEBI Regn. No.: INZ000302639, Depository Participant of CDSL Depository with SEBI Regn. No.: IN-DP-696-2022, Research Analyst with SEBI Regn No: INH000013387, BSE RA Enlistment Number: 5887, and Mutual Fund distributor with AMFI Registration No: ARN- 187821. Member ID: BSE- 6756, NSE- 90226. 

Registration granted by SEBI, enlistment as Research Analyst, and Certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors

Registered office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Service Road, Green Glen Layout, Bellandur, Bengaluru South, Bengaluru, Karnataka – 560103, INDIA.

CIN: U65990KA2021PTC146954