Ola Electric vrooms

Ola Electric is the top gainer on the BSE since the opening bell today; last week for three consecutive days the stock was hitting new 52-week lows and today, it opened at a another new low at Rs.39.58 but after the results came in, it shot up almost 18% to Rs.46.83 and is now trading at Rs.45.88, up more than 15%. 

The market is happy because - While not yet profitable on a consolidated basis, the company's sharp margin improvement and near-neutral auto operating cash flow mark an inflection point.

The comp[any posted its Q1FY26 performance and Ola Electric posted a solid topline performance, reporting Rs.828 Cr in revenue (up 35.5% QoQ), supported by strong volume growth at  68,192 vehicles delivered vs 51,375 in Q4 (up 33%).

A key positive is the marked improvement in operating margins:

• Auto business EBITDA improved to -11.6%, vs -90.6% in Q4 FY25.
• June turned EBITDA-positive, a critical psychological and financial milestone for the auto division.
• Consolidated EBITDA improved to -28.6%, signalling broader discipline.

This improvement is largely attributed to Ola’s vertical integration strategy, allowing better control over input costs, and a sharp reduction in opex through Project Lakshya. Sustained volume growth in Q2, further FCF improvement, and clarity on FY26 capex and expansion plans will decide its course of road in FY26.