Shares of Electric two-wheeler maker Ola Electric will be in focus today as the company will announce its Q1FY26 earnings. It is expected to report another weak quarter with its April-June quarter losses widening to on the year-on-year and quarter-on-quarter basis. Companies sales are also expected to fall in double digits as a result of significant fall in volumes.
Domestic brokerage Kotak Institutional Equities has estimated an adjusted net loss at Rs 459 crore in Q1FY26 versus Rs 324 crore in Q1FY25 and Rs 374 crore in Q4FY25.
The company's revenue is estimated at Rs 685 crore in the quarter under review which could fall by 58% on a YoY basis and by 27% on a sequential basis, Kotak’s preview note said.
The volumes are expected to fall 52% to 60,000 units in the quarter ended June 30, 2025 on a YoY basis while declining by 20% over the January-March quarter of FY25.
Also Read: Ola Electric Q1 Results: Ola Electric reported a consolidated net loss of Rs 428 crore for Q1 2025
The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is pegged at a negative Rs 289 crore, widening from the losses of Rs 205 crore in Q1FY25 and Rs 264 crore in Q4FY25. Meanwhile, the margins are likely to fall by over 42% in Q1FY26 versus 12.5% in Q1FY25 and 28.3% in Q4FY25.
Kotak has attributed the revenue losses to decline in volumes and decline in ASPs (average selling price) due to higher mix of mass market EV scooters.
The stock of Ola Electric has been under pressure following a disappointing Q4 performance. The company had reported a net loss of Rs 870 crore in the March quarter—more than double the Rs 416 crore loss from a year earlier. Revenue from operations declined 62% year-on-year to Rs 611 crore, as vehicle deliveries dropped to 51,375 units from 1.15 lakh.
EBITDA margins also took a hit, with the auto segment margin falling to -78.6% from -9.3% and consolidated EBITDA margin worsening to -101.4%. However, gross margins improved to 19.2%, aided by higher adoption of the Gen-3 platform, which offers better performance at lower costs.
For the full year, Ola Electric delivered 3.59 lakh vehicles, up from 3.29 lakh in FY24. Adjusted revenue for FY25 stood at Rs 4,665 crore, with a consolidated EBITDA margin of -34.6%.
Drumil Vithlani, Technical Research Analyst at Bonanza, said, “Ola Electric is trading at an all-time low with strong volume support, confirming a bearish setup. The RSI is below 30, indicating oversold territory. While a short-term bounce can’t be ruled out, the broader trend remains negative unless the stock reclaims Rs 45. Any recovery should be viewed as a selling opportunity, with a downside target of Rs 38”.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Domestic brokerage Kotak Institutional Equities has estimated an adjusted net loss at Rs 459 crore in Q1FY26 versus Rs 324 crore in Q1FY25 and Rs 374 crore in Q4FY25.
The company's revenue is estimated at Rs 685 crore in the quarter under review which could fall by 58% on a YoY basis and by 27% on a sequential basis, Kotak’s preview note said.
The volumes are expected to fall 52% to 60,000 units in the quarter ended June 30, 2025 on a YoY basis while declining by 20% over the January-March quarter of FY25.
Also Read: Ola Electric Q1 Results: Ola Electric reported a consolidated net loss of Rs 428 crore for Q1 2025
The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is pegged at a negative Rs 289 crore, widening from the losses of Rs 205 crore in Q1FY25 and Rs 264 crore in Q4FY25. Meanwhile, the margins are likely to fall by over 42% in Q1FY26 versus 12.5% in Q1FY25 and 28.3% in Q4FY25.
Kotak has attributed the revenue losses to decline in volumes and decline in ASPs (average selling price) due to higher mix of mass market EV scooters.
The stock of Ola Electric has been under pressure following a disappointing Q4 performance. The company had reported a net loss of Rs 870 crore in the March quarter—more than double the Rs 416 crore loss from a year earlier. Revenue from operations declined 62% year-on-year to Rs 611 crore, as vehicle deliveries dropped to 51,375 units from 1.15 lakh.
EBITDA margins also took a hit, with the auto segment margin falling to -78.6% from -9.3% and consolidated EBITDA margin worsening to -101.4%. However, gross margins improved to 19.2%, aided by higher adoption of the Gen-3 platform, which offers better performance at lower costs.
For the full year, Ola Electric delivered 3.59 lakh vehicles, up from 3.29 lakh in FY24. Adjusted revenue for FY25 stood at Rs 4,665 crore, with a consolidated EBITDA margin of -34.6%.
Drumil Vithlani, Technical Research Analyst at Bonanza, said, “Ola Electric is trading at an all-time low with strong volume support, confirming a bearish setup. The RSI is below 30, indicating oversold territory. While a short-term bounce can’t be ruled out, the broader trend remains negative unless the stock reclaims Rs 45. Any recovery should be viewed as a selling opportunity, with a downside target of Rs 38”.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
