Ola Electric Share Price Jumps 18%: First Operating Profit Signals Strong FY26 Outlook
Ola Electric Share Price Analysis: First Operating Profit Sparks 18% Rally, Is a Rebound in Sight?
Ola Electric, once hailed as India’s frontrunner in the electric mobility revolution, has seen a challenging journey in the stock market since its listing. Over the past year, the stock has lost nearly 40%, sliding from its highs to a current price of ₹46.16. However, a recent turnaround in the company’s fundamentals has sparked renewed investor interest. On July 15, 2025, shares of Ola Electric surged 18.36% on news of its first-ever operating profit and a positive outlook for FY26.
Ola Electric 1-Year Price Performance Overview
- Current Price (as of July 15, 2025): ₹46.16
- 1-Year Decline: -39.17%
- Recent Jump: +18.36% in one session (July 15)
The stock debuted with enthusiasm but faced steady downward pressure throughout the year due to mounting losses, volatile demand, and high operating costs. The latest earnings call and business update, however, hint at a potential turnaround.
Financial Highlights: FY25 & Q1FY26
- FY25 Vehicle Deliveries: 3,59,221 units
- FY25 Revenue: ₹4,645 crore
- Q1FY26 Revenue: ₹828 crore (vs ₹1,644 crore in Q1FY25)
- Q1FY26 Net Loss: ₹428 crore (vs ₹347 crore YoY)
- Gross Margin Q1FY26: 25.8% (vs 18.4% YoY)
Despite the widened net loss in Q1, gross margins have shown significant improvement. The company emphasised a shift from aggressive expansion to balanced, profitable growth.
FY26 Outlook: What Is Driving Investor Optimism?
- Projected Sales: 3.25-3.75 lakh vehicles
- Projected Revenue: ₹4,200-₹4,700 crore
- Expected Gross Margins: 35-40%
- EBITDA Positive: From Q2FY26 onwards
- PLI Scheme Benefits: Set to boost margins for Gen 3 products from Q2
Strategic Initiatives & Capex
- Cell Factory Expansion: 1.4 GWh capacity currently, scaling to 5 GWh by FY27
- Planned Capex: ₹2,800 crore (of which ₹1,500 crore invested)
- Rare Earth Risk Mitigation: Alternate magnet suppliers + rare earth-free motors in the next quarter
Expert Commentary Bhavish Aggarwal, Chairman and MD, highlighted a “transformative” quarter. The company’s new focus on operational efficiency, margin expansion, and strategic consolidation signals a maturing business ready for the next growth cycle.
Investment Verdict: Should You Buy, Hold, or Wait?
| Investor Type | Recommendation |
|---|---|
| Long-Term Investors | Watch for 2-3 more quarters of consistent results |
| Short-Term Traders | Trade with tight stop losses around ₹45 levels |
| New Investors | Accumulate gradually, preferably near ₹40-42 range |
Risks to Monitor
- Delay in PLI disbursements
- Supply chain volatility (esp. battery & rare earths)
- Pressure from established EV players
- Market sentiment if losses continue beyond FY26
Conclusion
While Ola Electric’s stock has suffered a significant decline over the past year, the company’s shift to operational profitability and stronger gross margin guidance for FY26 marks a pivotal point. The future remains dependent on execution, sustained EV demand, and continued support from government schemes like the PLI. For now, Ola Electric seems to be back on the radar for growth-oriented investors.
Disclaimer: This article is for educational purposes only and not financial advice. Please consult a registered investment advisor before making any investment decisions.
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