Latest news with #BhavishAggarwal-led
Time of India
14-07-2025
- Automotive
- Time of India
Ola Electric sets ₹4,700 cr revenue goal for FY26 amid mounting challenges
Bhavish Aggarwal-led Ola Electric , currently grappling with a multifaceted crisis—weak financials, regulatory scrutiny, service backlash, and intensifying competition—has set a revenue target of ₹4,200–4,700 crore for FY26 and expects to avail PLI benefits in the second quarter of the fiscal year. The electric two-wheeler manufacturer reported a 23 per cent year-on-year increase in its net loss to ₹428 crore for the June 2025 quarter, along with a nearly 50 per cent drop in revenue to ₹828 crore, marking a challenging period for the company that once led the market. Aiming high for Q2 Despite the Q1 downturn, the Bengaluru-based company remains optimistic about a stronger Q2 performance. In its letter to shareholders, Ola cited multiple drivers for this expected turnaround. The company aims to secure PLI (Production Linked Incentive) benefits in the current quarter, which it expects will help lift its exit gross margin (GM) for FY26 to around 35–40 per cent. 'Q1 Auto GM of 25.6 per cent was largely without PLI, and Q2 onwards, we should get the PLI benefit too. With operating costs largely flat, auto EBITDA should be 5 per cent+ for the whole year,' Ola stated. Sales recovery & festive boost In Q1 FY26, Ola sold 68,192 units. It aims to close the fiscal with sales volumes between 3,25,000 and 3,75,000 vehicles, largely driven by the upcoming festive season launch of its Gen-3 scooters and Roadster bikes. However, recent media reports have added concerns. The Maharashtra government has reportedly ordered the shutdown of nearly 90 per cent of Ola's 450 showrooms in the state, due to lack of permits to store vehicles—a move that could potentially dampen sales momentum. The company expects auto EBITDA to turn positive in Q2 and aims for operating cash flow generation from the auto business later in FY26. It has outlined a CAPEX of ₹300 crore for the remainder of the fiscal (including capitalised R&D). 'Our supply chain, engineering, and manufacturing teams continue to improve our product quality and BOM (Bill of Materials) cost, and these benefits should reflect in the P&L throughout the year,' the company said. Ola clarified that it does not plan any major new product or manufacturing CAPEX this year. It expects Free Cash Flow (FCF) requirement for the auto business to be ₹400–500 crore for the remaining three quarters and hopes to turn FCF-positive by the end of FY26. The company also reassured stakeholders that it is well-funded for the current and next fiscal year, with a cash balance of ₹3,197 crore as of the end of June 2025.
&w=3840&q=100)
Business Standard
14-07-2025
- Automotive
- Business Standard
Ola Electric shares soar 18% even as Q1 loss widens; Here's why
Shares of Ola Electric Mobility rose nearly 18 per cent on Monday even after the company's net loss widened in the first quarter of the current financial year, while its revenue halved. The positive momentum in the stock came as the Bhavish Aggarwal-led firm said it expects operating cash flow of the auto business to turn positive in the coming quarters. The electric two-wheeler maker's stock rose as much as 17.9 per cent during the day to ₹46.8 per share, the biggest intraday rise since November 27, 2024. The stock pared gains to trade 15.5 per cent higher at ₹45.9 apiece, compared to a 0.39 per cent decline in Nifty 50 as of 1:35 PM. Shares of the company snapped a five-day losing streak on Monday and currently trade at 3.6 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 51 per cent this year, compared to a 6 per cent advance in the benchmark Nifty 50. Ola Electric has a total market capitalisation of ₹18,768.08 crore. Ola Electric Q1 results The EV maker reported a net loss of ₹428 crore in the June quarter of the financial year 2026 (Q1-FY26), as against a loss of ₹347 crore in the same period last year. However, the reported loss was less than what analysts had anticipated, with Bloomberg consensus analysts expecting a loss of ₹452 crore. The widening in loss came as the company's revenue halved to ₹828 crore in the first quarter versus ₹1,644 crore in the corresponding period last year. On the margins front, the earnings before interest, taxes, depreciation, and amortisation (Ebitda) loss came in at ₹237 crore versus a loss of 205 crore earlier. The company's auto segment turned Ebitda positive in June, driven by improved gross margins and cost efficiencies. The auto segment Ebitda improved to 11.6 per cent, compared to 90.6 per cent in the fourth quarter of the previous financial year. The company's cost optimisation initiative, Project Lakshya, has driven significant operating efficiencies, reducing monthly auto opex from ₹178 crore to ₹105 crore, the company said. The company delivered 68,192 vehicles during the quarter, marking a 32.7 per cent rise over the previous quarter. It expects to sell between 3,25,000 and 3,75,000 vehicles in FY26, generating revenue in the range of ₹4,200 crore to ₹4,700 crore, it said in the exchange filing. With Production Linked Incentive (PLI) benefits set to begin from the second quarter for its Gen 3 product portfolio, gross margins are projected to improve to 35-40 per cent. The company anticipates full-year auto Ebitda to exceed 5 per cent and expects the auto business to remain Ebitda-positive from the second quarter onwards.
Mint
14-07-2025
- Automotive
- Mint
Ola Electric Q1 Results: Loss widens to ₹428 crore; revenue plunges 50% YoY
Ola Electric Q1 Results: The electric two-wheeler manufacturer Ola Electric on Monday, July 14, posted a wider consolidated net loss for the first quarter of the financial year 2025-26 (Q1 FY26) to ₹ 428 crore. The Bhavish Aggarwal-led company had posted a net loss of ₹ 347 crore in the same period a year ago. However, on a quarter-on-quarter (QoQ) basis, the loss narrowed from ₹ 870 crore posted at the end of the March quarter of FY25. The consolidated revenue from operations plunged 49.6% year-on-year (YoY) to ₹ 828 crore during the June quarter, as its sales took a beating from heavy competition. Ola Electric had reported a revenue of ₹ 1,644 crore in the same period last fiscal year. The performance, however, improved sequentially. The company had posted a revenue of ₹ 611 crore in the March 2025 quarter. The sales declined massively during the period under review, hurt by stiff competition from other players like Bajaj Auto, TVS Motor and Ather Energy. The company delivered 68,192 units in the June quarter of FY26, as against 1,25,198 units in the same period last year. On the operating level, the EBITDA loss for Ola Electric in Q1 FY26 stood at ₹ 237 crore, higher than ₹ 205 crore posted in Q1 FY25. The margins came in at -28.6% compared with -12.5%. The auto segment EBITDA improved sharply to -11.6%, compared to -90.6% in Q4 FY25, with June marking the first EBITDA-positive month for the auto business. The gross margin, meanwhile, improved to 25.8% from 18.4% on a YoY basis. "This is our best GM performance ever, driven by Gen 3 BOM reduction as a result of our focus on vertical integration and in-house tech, and this trend will continue over the next few quarters. Our FY26 exit target is to have our GM in the range of 35-40% with PLI benefits, which will be around ₹ 40,000 - ₹ 45,000 per vehicle," Ola said in a letter to shareholders. The company's cost optimisation initiative, Project Lakshya, has driven significant operating efficiencies, reducing monthly auto opex from ₹ 178 crore to ₹ 105 crore. Consolidated opex now stands at ₹ 150 crore per month, and further reduction to ~ ₹ 130 crore/month is targeted through FY26, the company said in a press release post earnings announcement. Ola expects to sell between 3,25,000 to 3,75,000 vehicles and generate revenue of ₹ 4200 - ₹ 4700 crore. 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%, it added. 'The company also expects the auto business to remain EBITDA positive from Q2 onwards,' Ola said. Ahead of the announcement of the first quarter earnings for the period ended June 2025, Ola Electric share price plumbed a fresh low of ₹ 39.58. However, the stock soon rebounded and rallied over 12.5% in intraday deals, helped by the strong sequential performance and turning EBITDA positive in auto business. Commenting on the Ola Electric stock, Anshul Jain, Head of Research at Lakshmishree Investments, said the EV stock, after breaking below its previous all-time low of 45, is now hovering near the 40 mark and continues to show clear signs of weakness on the charts. "The current price structure and lack of buying conviction suggest more downside risk, with a test of the 34 level looking increasingly likely if weakness persists. For any meaningful reversal or sustainable bounce to emerge, the stock must manage a decisive close back above 45 on a weekly basis, which seems unlikely in the present scenario. Until then, investors should stay cautious and avoid fresh longs," he advised. As of 12.25 pm, Ola Electric share price was at ₹ 44.78, up 12.46% on the BSE.
&w=3840&q=100)
Business Standard
14-07-2025
- Automotive
- Business Standard
Ola Electric shares soar 9% even as Q1 loss widens; Here's why
Shares of Ola Electric Mobility rose over 9 per cent on Monday after the company's net loss widened in the first quarter of the current financial year, while its revenue halved. The positive momentum in the stock came as the Bhavish Aggarwal-led firm said it expects operating cash flow of the auto business to turn positive in the coming quarters. The electric two-wheeler maker's stock rose as much as 9.47 per cent during the day to ₹43.5 per share, the biggest intraday rise since March 18 this year. The stock pared gains to trade 5.3 per cent higher at ₹41.9 apiece, compared to a 0.35 per cent decline in Nifty 50 as of 11:18 AM. Shares of the company snapped a five-day losing streak on Monday and currently trade at 3.6 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 51 per cent this year, compared to a 6 per cent advance in the benchmark Nifty 50. Ola Electric has a total market capitalisation of ₹18,768.08 crore. Ola Electric Q1 results The EV maker reported a net loss of ₹428 crore in the June quarter of the financial year 2026 (Q1-FY26), as against a loss of ₹347 crore in the same period last year. However, the reported loss was less than what analysts had anticipated, with Bloomberg consensus analysts expecting a loss of ₹452 crore. The widening in loss came as the company's revenue halved to ₹828 crore in the first quarter versus ₹1,644 crore in the corresponding period last year. On the margins front, the earnings before interest, taxes, depreciation, and amortisation (Ebitda) loss came in at ₹237 crore versus a loss of 205 crore earlier. The company's auto segment turned Ebitda positive in June, driven by improved gross margins and cost efficiencies. The auto segment Ebitda improved to 11.6 per cent, compared to 90.6 per cent in the fourth quarter of the previous financial year. The company's cost optimisation initiative, Project Lakshya, has driven significant operating efficiencies, reducing monthly auto opex from ₹178 crore to ₹105 crore, the company said. Ola Electric FY26 Outlook The company delivered 68,192 vehicles during the quarter, marking a 32.7 per cent rise over the previous quarter. It expects to sell between 3,25,000 and 3,75,000 vehicles in FY26, generating revenue in the range of ₹4,200 crore to ₹4,700 crore, it said in the exchange filing. With Production Linked Incentive (PLI) benefits set to begin from the second quarter for its Gen 3 product portfolio, gross margins are projected to improve to 35-40 per cent. The company anticipates full-year auto Ebitda to exceed 5 per cent and expects the auto business to remain Ebitda-positive from the second quarter onwards.
Hans India
01-07-2025
- Business
- Hans India
Ola Electric sales crash 45 pc in June, market share plunges to 19 pc
New Delhi: Bhavish Aggarwal-led Ola Electric sold 20,189 electric scooters in the month of June -- a massive 45 per cent drop (year-on-year) compared to 36,859 units from the same month previous year (June 2024), the government's VAHAN data showed on Tuesday. This decline has taken a toll on its market share, which has shrunk from 46 per cent in June 2024 to just 19 per cent now. The situation is no better on the stock market. Ola Electric, which is nearing the one-year mark since its public listing, has seen its share price fall steeply. On Tuesday afternoon, the stock was trading at Rs 42 on the National Stock Exchange (NSE), down Rs 1.16 or 2.69 per cent. The share also touched its 52-week low of Rs 41.82 today, far below its 52-week high of Rs 157.4. Over the past one month, the stock has lost 21.74 per cent of its value. Compared to its listing price of Rs 76, the stock is now down 43 per cent. The long-term view is even more worrying. In the last six months, the share price has fallen by more than half -- 51.25 per cent -- and over the past year, it is down 53.9 per cent. Investor sentiment took a further hit earlier in June when a large block deal took place. Around 14.22 crore shares worth Rs 731 crore changed hands, reportedly with Hyundai Motor Company as the seller. The average selling price was Rs 51.40 per share. On the financial side, Ola Electric has reported disappointing results for the fourth quarter (Q4) of FY25. The company posted a net loss of Rs 870 crore, which is more than double the Rs 416 crore loss it had in the same quarter of the previous year. Its revenue from operations also fell by 62 per cent year-on-year (YoY), dropping to Rs 611 crore. This was mainly due to lower vehicle deliveries, which stood at 51,375 units in Q4 FY25 -- down from 1.15 lakh units a year ago.
