Ola Electric share price extends rally, zooms 22% in two days despite ₹428 crore loss in Q1. What's behind the surge?
Apart from this, many operating performance updates — improvement in margins to the auto segment, turning EBITDA positive in June —appeared to be driving the interest in the two-wheeler electric company's stock.
Ola Electric shares, which are down almost 69% from their 52-week high levels, witnessed a spurt in buying interest as investors cheered the improvement in Q1FY26 performance over Q4FY25. The loss narrowed from ₹ 870 crore posted in the preceding quarter, even as it widened on a YoY basis.
The consolidated revenue from operations stood at ₹ 828 crore during the June quarter, higher than ₹ 611 crore in the March quarter.
'What sparked investor interest was the sequential improvement—losses narrowed significantly from ₹ 870 crore in Q4 FY25—and the operational turnaround in the automotive segment. Notably, the unit achieved positive EBITDA in June and delivered a record gross margin of 25.6%, driven by vertical integration, disciplined cost control under Project 'Lakshya,' and the shift to more efficient Gen‑3 models,' said Harshal Dasani, Business Head, INVasset PMS.
'Market confidence was further bolstered by Ola's guidance for FY26, with projected gross margins of 35–40%, supported by PLI-linked incentives and a target of becoming EBITDA-positive from Q2 onward. The company also introduced rare-earth-free motors, addressing long-term supply chain concerns and adding credibility to its localisation roadmap," Dasani added.
Ola expects to sell between 3,25,000 to 3,75,000 vehicles and generate revenue of ₹ 4200 - ₹ 4700 crore in FY26.
With Production Linked Incentive (PLI) benefits beginning from Q2 for the Gen 3 product portfolio, gross margin is projected to rise to 35% - 40%, and the company anticipates full-year auto EBITDA of above 5%, the company said in a release post Q1 results.
While the headline loss paints a grim picture, the underlying operational metrics indicate a company steadily regaining control and positioning itself for sustainable profitability, he said, adding that this is a classic case of the market rewarding execution clarity over immediate bottom-line performance.
Ola Electric share price settled over 18% higher on the BSE following its Q1 results announcement earlier in the day. In intraday today, Ola Electric share price jumped almost 4% to ₹ 48.88, taking the two-day gains to 22%.
Global brokerage Goldman Sachs maintained a 'Buy' rating on Ola Electric stock and raised the target price to ₹ 63 from ₹ 60 earlier. HSBC also raised its target for Ola Electric share price to ₹ 49 while maintaining a 'Hold' rating.
After multiple misses, punchy gross margin expansion in 1Q was a positive surprise, said HSBC. Yet it remains concerned that the cell business might not be eligible for the PLI benefit, weighing down the company's longer-term margin.
However, Kotak Institutional Equities (KIE) retained its 'Sell' rating on Ola Electric stock. "While the company has improved its profitability significantly, volume offtake remains below expectations given muted industry growth and increased competitive intensity, which remains an area of concern. Maintain SELL with an unchanged FV of ₹ 30 based on DCF methodology (3.5X FY2027E EV/sales)," it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
2 hours ago
- Business Standard
Uber, Ola drivers strike in Mumbai, commuters face tough second day
As a large section of drivers working with cab aggregator platforms Uber and Ola remained on strike for the second consecutive day, commuters across Mumbai faced significant disruption. The drivers' demands include a fixed base fare similar to that of local taxis (kali-peeli), a reduction in aggregator commission rates, and a ban on bike taxis. Today's protest was concentrated in the Navi Mumbai area, where some commuters were reportedly forced to de-board cabs. Several cab drivers that Business Standard spoke to confirmed the incident and added that they were declining rides into areas where tensions were high. While booking cabs on Uber and Ola proved difficult, Rapido continued to operate a significant number of cabs from the kali-peeli segment. 'Uber and Ola take a lot of commission. On the other hand, Rapido does not. Also, once we complete the quota under the subscription model, Rapido allows us to take bookings,' said a Rapido driver who did not wish to be named. The base fare of a kali-peeli cab in Mumbai is Rs 31 for the first 1.5 km, followed by Rs 20.6 per km. In contrast, aggregator fares such as those of Ola and Uber vary depending on factors like car model and ride category. 'The MVAG guidelines expected to be issued in Mumbai will allow a fare cap of only 0.5 to 1.5 per cent over the base fare, inclusive of surge pricing. The protesting drivers want fixed fares, but that may not work in their favour. There is an understanding that the government supports flexible pricing,' said a mobility expert. One reason the government may oppose fixed rates is the concern that drivers would favour only select routes. Industry players say dynamic pricing offers benefits for both drivers and passengers. Emails sent to Ola and Uber remained unanswered at the time of press. Another issue fuelling the unrest is the continued operation of bike taxis, despite a ban by the Maharashtra government. 'While some platforms have stopped offering bike taxi services, others continue through greyballing—using selective routing to avoid detection,' said a source familiar with the matter.
Time of India
4 hours ago
- Time of India
Beyond Vision: Why Radar is the Gamechanger for Autonomous Driving in India
The article is authored by Hitesh Garg, VP and India MD, NXP Semiconductors. India is at a crucial point in its journey toward autonomous mobility with a vision of obtaining full autonomy, which is still on the horizon, but the groundwork is being laid with ADAS becoming more prevalent in mid-range and premium vehicles. A recent report by McKinsey & Company estimates that by 2030, up to 20–30% of new cars sold in India could come with at least Level 2 autonomy , including features like adaptive cruise control and lane-keeping assistance. The government's push through policies like the PLI scheme for automotive and auto components is further creating a fertile ground for this transformation. As the sector evolves, vision-based systems, while powerful face critical limitations in real-world conditions. Enter radar: a technology that is proving indispensable in ensuring safety, precision, and reliability, especially in India's complicated driving environments. Radar in the Real World: Where Vision Falls Short by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo Unlike cameras and LiDAR, which rely heavily on visual data, radar operates on the principle of electromagnetic wave reflection. This allows it to "see" through dense fog, heavy rainfall, pitch darkness, and even dust, scenarios that are all too common across India's varied geographies. Since India's traffic isn't just chaotic; it's also unpredictable, the traditional vision systems can get overwhelmed by the diversity of movement patterns and low-contrast situations. Therefore, Radar systems, with their capability to detect objects up to several hundred meters away, and their resilience in low-visibility conditions, become important allies in enhancing road safety. The Technology Within: Making Radar Affordable and Scalable Further to this development, a new generation of radar microcontrollers are designed specifically for ADAS applications. One such chip is the S32R47, a 32-bit radar processor built on 16 nm FinFET (Fin Field-Effect Transistors) technology. It integrates high-performance signal processing capabilities with multi-core compute, enabling denser point cloud output and enhanced algorithms that enable next-generation driving automation systems from Level 2+ up to Level 4. What sets this chip apart is its ability to deliver imaging radar performance at scale, , alongside improved system cost and power efficiency. The cost efficiency makes it possible to accelerate the roll-out of 4D imaging Radar across all regionsThe S32R47 supports 4D imaging radar, enabling vehicles to accurately detect, classify and track objects, whether they are small or large, still or moving, that are relevant for the vehicle to make driving decisions, It also creates a detailed, real-time map of the vehicle's surroundings. For standard front and corner radar applications, NXP was first to introduce a radar one-chip SoC (System-on-Chip) built on 28nm RFCMOS technology, the SAF85xx, enabling implementation of NCAP (New Car Assessment Programme) features, including automated emergency braking and blind-spot detection. It is comprised of a highly integrated RF front-end and a multi-core radar processor. By combining standard or imaging radar with vision systems, manufacturers can create sensor fusion architectures that are scalable, cost-effective and reliable. This makes autonomy more accessible, for both mass-market vehicles and high-end models. Challenges and the Road Ahead Implementing radar-based systems comes with its own set of hurdles. One major challenge is spectrum allocation, as automotive radar operates in the 76–81 GHz band and requires interference-free frequency access to function optimally. Policy-level clarity and dedicated spectrum for automotive radar will be critical to ensure consistent performance in urban and highway scenarios. Another barrier is the lack of indigenous manufacturing for key radar components such as antennas, RF front ends, and MMICs. To overcome this, India needs a focused push toward localizing component production through technology transfers, public-private partnerships, and startup incubators focused on automotive semiconductors. Software also presents a complex challenge. Radar systems must be trained on Indian traffic patterns and road behavior, which can differ significantly from global datasets. Tackling this requires creating large-scale, localized radar datasets and simulation environments to fine-tune performance under diverse Indian driving conditions—from congested city roads to high-speed expressways. Encouragingly, progress is already underway. Global OEMs are investing in India-based R&D hubs, local suppliers are ramping up radar module production, and the use of advanced simulation and testing platforms is accelerating product readiness for Indian conditions. Conclusion The road to autonomous driving in India will not be paved with just vision, it will require the invisible clarity that radar provides. As we move toward a future where safety, accessibility, and scalability are paramount, radar technology emerges not just as a complementary component but as a foundational pillar of that vision. To unlock the full potential of autonomy in India, we must go beyond vision, and radar is showing us the way. Discover everything about the automotive world at Times of India .
Fashion Value Chain
5 hours ago
- Fashion Value Chain
Nobel Hygiene Secures ₹25 Cr PLI Grant for FY 2024–25
Nobel Hygiene, a leading Indian player in the hygiene products sector, has been awarded ₹25 crore under the Production Linked Incentive (PLI) scheme by the Ministry of Textiles for FY 2024–25. Out of more than 50 applicants in the diaper segment, Nobel Hygiene is one of only two companies selected—an acknowledgment of its strong commitment to boosting domestic manufacturing and furthering the Indian government's Atmanirbhar Bharat mission. This prestigious recognition underscores the company's strategic efforts to strengthen India's hygiene sector. It follows Nobel Hygiene's recent ₹180 crore investment in a new greenfield manufacturing facility. The state-of-the-art plant is designed to enhance production capabilities, integrate cutting-edge technologies, and support the company's growing presence across the country. The PLI grant will play a pivotal role in driving innovation, efficiency, and self-reliance in India's hygiene manufacturing ecosystem. The incentive allows Nobel Hygiene to scale operations and meet increasing domestic demand, especially in underserved markets where access to quality hygiene products remains a priority. In light of this milestone, the company is open to facilitating a conversation with Mr. Nikhil Datye, CFO, Nobel Hygiene, to delve deeper into this achievement. Key topics for discussion include: The strategic importance of the Ministry of Textiles' recognition How the PLI grant is accelerating product innovation within the hygiene sector The company's roadmap for scaling operations and aligning with national self-sufficiency goals With this support, Nobel Hygiene is positioned to lead a transformative shift in India's hygiene landscape while contributing meaningfully to the textile sector's modernization. The company's role in building capacity and leveraging local capabilities serves as a model for how public-private synergy can drive sustainable and inclusive industrial growth.
