Ola Electric Q1 Loss Widens 23% YoY to ₹428 Cr Despite Rising Revenues

Ola Electric’s Q1 loss widened to ₹428 crore in the April–June quarter of FY26, marking a 23.3% increase from ₹347 crore in the same period last year, as reported by Inc42. Though the losses have halved on a quarterly basis by 50.8% as reported in the January to March quarter.

The company’s consolidated revenue from operations declined by almost 50% YoY to ₹828 crore, down from ₹1,644 crore in Q1 FY25 . However, on a sequential basis, revenue rose 35.5% from ₹611 crore.

Revenue Grows But Costs Remain High

Ola Electric’s core electric vehicle sales contributed ₹378 crore in revenue during Q1 FY26, as part of its total revenue of ₹828 crore, showing a steady growth in the company’s core electric vehicle sales. However, this growth was insufficient to offset the rising expenses associated with scaling operations. The loss for the quarter reflects Ola’s aggressive spending on technology, marketing, and manufacturing unit setup.

The company’s spending is part of its broader goal to gain a stronger hold in the EV two-wheeler segment, where it competes with players like Ather Energy, TVS, and Bajaj. Despite increased revenue, the gap between earnings and expenses remains significant.

Operational Metrics Show Continued Pressure

The EBITDA loss for Ola Electric during the quarter stood at ₹274 crore. While this is slightly better than the previous quarter, it still highlights ongoing pressure on margins. Ola’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a key indicator of operational performance, and a negative figure points to the challenges of managing costs while expanding production.

The company continues to operate in a high cash-burn environment as it works on new product launches, network expansion, and technology upgrades. Analysts tracking the EV sector believe this phase is critical for Ola Electric’s long-term plans.

As per Ola Electric’s FY25 Q1 report, the company remains in investment mode. Its flagship models, the S1 Pro and S1 Air, have seen good traction in the market, but heavy investments in R&D, supply chain, and service infrastructure continue to weigh on its profitability.

IPO Buzz Builds Amid Ongoing Losses

Despite the widening of Ola Electric’s Q1 loss, the company is moving forward with its IPO plans. Market experts say the upcoming public listing will be one of the most watched events in India’s EV sector. Although the company has yet to confirm the date, it has already filed preliminary papers with market regulators.

Investors are paying close attention to the financial and business outlook ahead of the IPO. Performance in upcoming quarters will be key in determining investor confidence and final valuation.

The outlook remains mixed, with long-term potential supported by growing EV adoption, even as short-term challenges like high input costs and delayed profitability persist.