Ola Electric shares jumped ~20% to ₹47.7 after Q1 FY26 results showed improved margins, reduced losses (₹428 Cr), strong unit sales (68K), and positive EBITDA in June—igniting optimism amid revenue fall.
📊 What’s Happened Today
Ola Electric Mobility witnessed a sharp rally ~19.8% intraday, closing around ₹47.7, after Q1 FY26 results impressed markets despite widened losses . The current trading range sits between ₹39.6 (52‑week low) and ₹157.4 (52‑week high) .
📈 Q1 FY26 Highlights – Key Numbers
| Metric | Value |
|---|---|
| Revenue | ₹828 Cr (–50% YoY, +35% QoQ) Business Standard |
| Net Loss | ₹428 Cr (widened from ₹347 Cr YoY; narrowed from ₹870 Cr in Q4) |
| EBITDA | Turned positive in June, first time |
| Unit Deliveries | 68,192 scooters (+33% QoQ) |
| Volume & Trading Activity | ~59 Cr shares traded; among top-midcap movers |
| Market Cap & Book Value | ~₹20,000 Cr; Book Value ₹11.7 |
Why the Stock Rallied 🔁
- EBITDA Turnaround – June operating profits eased investor concerns despite a major revenue decline The Economic Times+15Reuters+15The Times of India+15.
- Revenue QoQ Recovery – Revenue rebounded 35.5% from previous quarter, signaling stabilization .
- Margin Improvement Forecast – Management forecasts FY26 gross margins around 35–40% (vs ~20% last year) Reuters+1TradingView+1.
- Operational Scale-Up – Q1 deliveries surged, showing demand rebound and production ramp-up TradingView.
⚠️ Key Risks Ahead
- Revenue Decline – 50% YoY drop amid aggressive price cuts and high competition The Times of India+4Business Standard+4Samco+4.
- Persistent Losses – Still posted ₹428 Cr loss, though narrower QoQ TradingView+5Samco+5The Economic Times+5.
- Volatility – Huge price swings; weekly gain of +12%, but still far below 52‑week high .
Technical Chart View
- Support Zone: ₹40–45 (recent bounce from ₹39.6)
- Resistance: ₹60+ (psychologically and 50‑day SMA) groww.in+2marketsmojo.com+2The Economic Times+2
- Volatility Alert: Beta ~1.6; concludes live below moving averages—so trend reversal is still early
🎯 Should You Buy?
- Short-Term Traders:
A rebound from ₹40 support could push back toward ₹60 if margins continue improving and range breaks. High risk, high reward. - Long-Term Investors:
Positive EBITDA in June and Q2 margin expansion can mark a turnaround. However, revenue recovery, deadline to profitability, and sustained execution remain key. Consider waiting for ₹40–45 zone entry.
❓ FAQs — Ola Electric Share Price
Q1. Revenue dropped 50%—why did stock rally?
Because EBITDA went positive for the first time, revenues rebounded QoQ, and management projected margin recovery to 35–40% ScreenerNDTV Profit+7The Financial Express+7marketsmojo.com+7Reuters.
Q2. Is this rally sustainable?
Only if margin trajectory holds or deliveries rise further. Profitability tracking will be crucial.
Q3. Key moving averages?
Stock still trades below 5/20/50/200-day SMAs. A move above ₹60 would be a stronger recovery signal marketsmojo.com.
Q4. Is Ola Electric profitable yet?
Not yet. While EBITDA is positive for June, overall quarter still records a ₹428 Cr loss Reuters.
Q5. Should I invest now?
If comfortable with volatility and strategic outlook on EV demand, a buy near ₹45 may work. Otherwise, wait for clearer profitability consistency.
⚠️ Disclaimer
For educational and informational purposes only. Not investment advice. Consult a SEBI-registered financial advisor before making decisions.
🏁 Final Take
Ola Electric’s Q1 update marks a crossroads: revenue rebound, narrowed loss, positive EBITDA, and margin guidance have sparked renewed investor optimism, pushing the stock ~20% higher. Still, revenue recovery and path to profitability are what will define the long-term trend. Short-term traders can ride the bounce; long-term investors should watch for sustained execution.
