Ola Electric’s Q1 Loss Narrows: SEBI RAs Spot Breakout Amid Operational Discipline And Volume Surge

Ola Electric's shares surged 15% on Monday after the company’s first quarter performance reflected early signs of operational recovery, despite a steep year-on-year decline in topline. 

Ola reported a consolidated net loss of ₹428 crore in Q1 FY26, narrowing from ₹870 crore in the previous quarter but widening from ₹347 crore a year earlier. Revenue for the quarter came in at ₹828 crore, down 49.6% year-on-year from ₹1,644 crore.

At the time of writing, shares of Ola Electric were trading at ₹45.93, up 15.4% on the day.

SEBI-registered analysts Financial Sarthis and Rajneesh Sharma noted that June marked the first EBITDA-positive month for Ola’s auto business. 

Sarthis pointed to a steep drop in auto opex from ₹178 crore to ₹105 crore under Project Lakshya, improved free cash flow, and higher adoption of MoveOS+ software. 

Meanwhile, Sharma highlighted that Ola Electric achieved all key operational targets, including a gross margin of 25.8% compared to 13.7% in the previous quarter, and a halving of net loss to ₹428 crore from ₹870 crore in Q4.

Technical indicators also signaled momentum. 

Sharma said the stock broke out of a 6-month falling wedge pattern, rising over 7% with volume, with the next resistance levels seen at ₹44 and ₹48.10. 

Sarthis noted that a breakout above ₹47 would confirm trend reversal, with the 50 EMA acting as dynamic resistance.

Both analysts flagged strategic tailwinds, including rising software revenue, increased sales of Gen 3 scooters, the launch of Roadster X in 200+ stores, and vertical integration in cell manufacturing. 

Ola’s 4680 battery cells are set to debut this Navratri, with FY26 targets of 3.25–3.75 lakh vehicle sales and ₹4,200–₹4,700 crore in revenue.

On Stocktwits, retail sentiment was ‘bearish’ amid ‘high’ message volume.

The stock has declined 46.7% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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