Synopsis: Ola Electric shares have crashed 70% from their peak, Q2 showed a sharp YoY slowdown, where revenue fell 43%, total income down 42% and losses were still high. Management, however, is guiding for margin expansion, improving unit economics and cell manufacturing revenue from Q4.
This company is an electric vehicle company that primarily manufactures electric vehicles and core components for electric vehicles is now in the spotlight after reporting its Q2 results and guidance given by the management.
With market capitalization of Rs. 20,978 cr, the shares of Ola Electric Mobility Ltd are currently trading at Rs. 48 per share, hit a 5% lower circuit in today’s market session, making a low of Rs. 47.55, from its previous close of Rs. 50.06 per share. The stock delivered a negative return of 36% in the past year, and it is down by 70% from its all-time high of Rs. 157.
YoY performance
Revenue from operations declined by 43% from Rs. 1,214 cr in Q2FY25 to Rs. 690 cr in Q2FY26. Total income fell by 42% to Rs. 756 cr from Rs. 1,314 cr. EBITDA loss stands at Rs. 203 cr from Rs. 379 cr. Net loss narrowed from Rs. 495 cr to Rs. 418 cr over the same period.
QoQ performance
Revenue from operations declined by 17% from Rs. 828 cr in Q2FY25 to Rs. 690 cr in Q2FY26. Total income fell by 19% to Rs. 728 cr from Rs. 896 cr. Net loss narrowed from Rs. 428 cr to Rs. 418 cr over the same period.
Guidance
Ola Electric has laid out its Q2 and FY26 directional guidance with a clear pivot towards disciplined growth, margin expansion and profitability visibility rather than aggressive volume chase.
The company is targeting up to 1 lakh deliveries in H2 FY26, while maintaining that auto volumes may remain lower than the earlier Q1 trajectory as emphasis shifts to better unit economics. Ola expects FY26 consolidated revenues to be in the range of Rs. 3,000–3,200 crore, with management indicating that bottom-line performance is likely to surpass Q1 levels. Auto segment profitability is expected to continue improving sequentially, with Q4 Auto gross margins guided at approximately 40% and segment EBITDA around 5%.
A structural shift is also being highlighted as Ola prepares for cell manufacturing contribution, an important long-term margin and cost control driver for the EV ecosystem. The company expects cell business to begin generating revenue from Q4 and sees cell gross margins stabilising near 30% by early FY27. This marks a meaningful transition from merely assembling EVs into a more integrated EV technology and energy play potentially improving sustainability of earnings and margin resilience over the medium term.
If Ola Electric actually delivers what it has guided higher auto gross margins, improving EBITDA, revenue scale up and cell business contribution from Q4 then profitability may finally become achievable.
Ola Electric’s auto business turned profitable for the first time in Q2 FY26 with gross margins expanding to 30.7%. The segment also became cash generative, delivering Rs. 15 crore cash flow from operations (reported at -Rs. 40 crore due to one-time festive inventory build). The company also launched Ola Shakti, India’s first residential BESS powered by its in-house 4680 Bharat Cells.
About the company
Ola Electric Mobility Ltd is an Indian electric vehicle company focused primarily on electric two-wheelers, with an integrated approach across vehicle design, battery tech, software, charging and now cell manufacturing. Backed by the Ola ecosystem, it aims to scale EV adoption in India while shifting towards margin discipline and long-term profitability visibility.
The return ratios remain extremely weak at present, with ROCE at -28.1% and ROE at -108%, indicating continued losses and inefficient capital deployment. Despite this, the stock is still quoting at a valuation of around 4.23x its book value
FII’s have decreased their stake from 4.47% in Q1FY26 to 3.24% in Q2FY26. DII’s holding rose to 6.78% from 2.87%. Public shareholding decreased from 50.70% to 48.33% over the same period.
Written by Manideep Appana
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
