Mon Jul 14 05:50:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:

**Ola Electric Focuses on Profitability After Q1 Revenue Dip; Shares Surge on Positive Outlook**

**New Delhi, July 14, 2025, 11:08 IST** – Ola Electric shares jumped over 5% today on the National Stock Exchange following the release of its Q1 FY26 earnings report. While the company reported a 50% year-over-year decline in revenue from operations, falling to ₹828 crore from ₹1,644 crore in Q1 FY25, and an increased EBITDA loss of ₹237 crore compared to ₹205 crore the previous year, the company is emphasizing a strategic shift towards profitable growth and operational efficiency, which boosted investor confidence.

Ola Electric stated its auto segment cash generation was almost neutral in Q1 and claimed of making structural improvements in opex and working capital.

The company highlighted the positive reception of its new product launches, including the Gen 3 scooters and the Roadster bike, as well as strong sales of its MoveOS+ software. A significant focus is on achieving self-sufficiency in key components, including the development of Heavy Rare Earths (HRE)-free motors slated for production in Q3 FY26 and in-house solutions for rare earth magnets and ABS.

A key technological advancement is the upcoming launch of vehicles powered by Ola’s in-house 4680 Bharat Cell, expected to begin this Navratri. The company anticipates fully utilizing its current 1.4 GWh production capacity and expanding to 5 GWh by the end of FY26, reaching full consumption of this capacity by FY27.

“We’ve made a pivot to our strategy over the last two quarters from aggressive penetration to balanced profitable growth,” Ola Electric stated. “Our goal in this phase is to consolidate and institutionalise our operations, improve our margins, and get ready for the next phase of growth driven by our expanding product portfolio, improving distribution, and engaging the next set of customers entering the industry. This strategy is now getting results, as seen in our Q1 results.”

Ola Electric projects FY26 vehicle volumes to be in the range of 325,000 to 375,000, with projected revenue of ₹4200 crore to ₹4700 crore. The company also expects to benefit from the Production Linked Incentive (PLI) scheme from Q2 onwards, projecting an exit gross margin (GM) of 35-40% for FY26. The company expects the cell business to be FCF positive at the production scale of 5 GWh by the end of FY27

The company reported that its new Gen 3 scooters accounted for 80% of total scooter sales during the quarter, delivering better margins and reducing warranty claims, highlighting the success of ongoing engineering improvements. The Roadster X motorcycle rollout is also progressing, with availability in 200 stores across India and further expansion planned for the festive season.

Despite a challenging quarter, Ola Electric’s strategic shift towards profitability and its advancements in technology and manufacturing appear to have resonated with investors, fueling today’s stock surge.

Read More