Latest news with #Electric
Economic Times
15-07-2025
- Automotive
- Economic Times
HSBC raises Ola Electric target price to Rs 49 but sticks with hold rating. What's behind the caution?
HSBC raised Ola Electric's target price to ₹49 after a surprise gross margin beat in Q1FY26. However, the brokerage remains cautious due to long-term risks linked to PLI eligibility and battery manufacturing challenges. Tired of too many ads? Remove Ads Execution gains, but structural concerns remain Tired of too many ads? Remove Ads Valuation, outlook, and risks HSBC Global Research has raised its target price on Ola Electric Mobility to Rs 49 from Rs 45, while maintaining a "hold" rating on the stock following a better-than-expected gross margin performance in the company's first-quarter results. The brokerage said it remains cautious about long-term margin headwinds stemming from uncertainties around government incentives for battery revised target implies a modest 4% upside from current levels, with HSBC saying the valuation "reflects all improvements" after the electric vehicle maker's 25.8% gross margin in Q1FY26 surprised positively, well above its estimate of 19%.'After multiple misses, punchy gross margin expansion in 1Q was a positive surprise,' HSBC brokerage attributed the margin beat primarily to an 11% cost saving from Ola's new Gen-3 scooter platform, which drove a 12-percentage-point improvement quarter-on-quarter. HSBC expects further gross margin expansion of about 4 percentage points in Q2 as the older Gen-2 models, which accounted for 20% of Q1 sales, phase out and production-linked incentive (PLI) benefits potentially begin to Electric achieved EBITDA breakeven in its auto business in June, with management expecting positive EBITDA in the current quarter. The company has ramped up internal efficiencies by bringing motor production in-house, redesigning battery packs, and integrating its motor control units (MCUs), which also reduced wiring these advances, HSBC flagged risks to Ola's battery cell operations. The company has started manufacturing 4680-format cells and plans to expand capacity from 1.4GWh to 5GWh by FY27. However, the brokerage warned that Ola may miss key manufacturing milestones required to qualify for PLI benefits, potentially attracting penalties of around Rs 1,000 crore.'Yet [we are] concerned that cell business might not be eligible for PLI benefit, weighing down longer-term margin,' HSBC lack of immediate PLI approval for the Gen-3 scooters is also a factor. Although the company expects to secure these benefits by the second quarter of FY26, HSBC notes that the margin impact, an estimated 2–4% uplift, remains contingent on regulatory Electric's shares were trading 5.3% lower at Rs 44.61 on the BSE as of Tuesday afternoon, even as the stock remains up 2.4% over the last year. HSBC said the stock is currently trading at 3.8x FY26 estimated EV/sales, compared with 3.2x for TVS Motor and 4.1x for Bajaj brokerage values Ola using a 10-year discounted cash flow (DCF) model with a weighted average cost of capital of 10.8%, factoring in increased company-specific risk. Its long-term concerns include stiffening competition, weaker-than-expected EV penetration, and execution challenges in Ola's cell manufacturing business.'We maintain a Hold rating, given lower confidence on company estimates,' the report the stock is trading above its short-term moving averages (5-day to 30-day), but remains below longer-term ones (50-day to 200-day). The Relative Strength Index (RSI) stands at 60.2, indicating neutral momentum. Meanwhile, the MACD remains negative at -1.6 and below both its signal and center lines, a bearish signal.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
14-07-2025
- Automotive
- Time of India
Ola Electric to announce Q1FY26 results today. Here's what to expect
Shares of Electric two-wheeler maker Ola Electric will be in focus today as the company will announce its Q1FY26 earnings. It is expected to report another weak quarter with its April-June quarter losses widening to on the year-on-year and quarter-on-quarter basis. Companies sales are also expected to fall in double digits as a result of significant fall in volumes. Domestic brokerage Kotak Institutional Equities has estimated an adjusted net loss at Rs 459 crore in Q1FY26 versus Rs 324 crore in Q1FY25 and Rs 374 crore in Q4FY25. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The company's revenue is estimated at Rs 685 crore in the quarter under review which could fall by 58% on a YoY basis and by 27% on a sequential basis, Kotak's preview note said. The volumes are expected to fall 52% to 60,000 units in the quarter ended June 30, 2025 on a YoY basis while declining by 20% over the January-March quarter of FY25. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is pegged at a negative Rs 289 crore, widening from the losses of Rs 205 crore in Q1FY25 and Rs 264 crore in Q4FY25. Meanwhile, the margins are likely to fall by over 42% in Q1FY26 versus 12.5% in Q1FY25 and 28.3% in Q4FY25. Live Events Kotak has attributed the revenue losses to decline in volumes and decline in ASPs (average selling price) due to higher mix of mass market EV scooters. The stock of Ola Electric has been under pressure following a disappointing Q4 performance. The company had reported a net loss of Rs 870 crore in the March quarter—more than double the Rs 416 crore loss from a year earlier. Revenue from operations declined 62% year-on-year to Rs 611 crore, as vehicle deliveries dropped to 51,375 units from 1.15 lakh. EBITDA margins also took a hit, with the auto segment margin falling to -78.6% from -9.3% and consolidated EBITDA margin worsening to -101.4%. However, gross margins improved to 19.2%, aided by higher adoption of the Gen-3 platform, which offers better performance at lower costs. For the full year, Ola Electric delivered 3.59 lakh vehicles, up from 3.29 lakh in FY24. Adjusted revenue for FY25 stood at Rs 4,665 crore, with a consolidated EBITDA margin of -34.6%. Drumil Vithlani, Technical Research Analyst at Bonanza, said, 'Ola Electric is trading at an all-time low with strong volume support, confirming a bearish setup. The RSI is below 30, indicating oversold territory. While a short-term bounce can't be ruled out, the broader trend remains negative unless the stock reclaims Rs 45. Any recovery should be viewed as a selling opportunity, with a downside target of Rs 38'. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Mint
11-07-2025
- Automotive
- Mint
Govt announces incentive for e-trucks under PM E-Drive scheme. Delhi gets special allocation.
New Delhi: With less than nine months to go in the PM E-Drive scheme's runtime, Union heavy industries minister H.D. Kumaraswamy on Friday announced guidelines for consumers to avail incentives for purchasing electric trucks. Customers can get incentives of ₹ 5,000 for every kilowatt-hour of an e-truck's battery capacity, Kumaraswamy said during a press briefing in New Delhi. Typically, the battery of an electric truck has a capacity of 250-400 kWh. Mint first reported on 3 July that the government was considering a ₹ 5,000 per kWh subsidy for electric trucks under the PM E-Drive scheme. The maximum incentive available will be capped at ₹ 9.6 lakh for a single e-truck, the Kumaraswamy said. The government plans to incentivise about 5,600 e-trucks, with an allocation of about ₹ 500 crore under the ₹ 10,900 crore PM E-Drive scheme. Of this, 1,100 e-trucks will be reserved for Delhi owing to the national capital's air quality woes. The government's flagship incentive programme to promote electric mobility, which received the Union cabinet's assent in September, is slated to end in March 2026. Electric trucks are among sunrise sectors identified in the scheme, which came as a successor to two iterations of the FAME scheme from FY15 to FY24. FAME stands for Faster Adoption and Manufacturing of Electric (& Hybrid) vehicles. Under the PM E-Drive scheme, incentives will be given to N2 and N3 categories of trucks, weighing 3.5-12 tonnes and 12-55 tonnes, respectively. 'Several leading OEMs (original equipment manufacturers) such as Volvo Eicher, Tata Motors, and Ashok Leyland are already engaged in manufacturing electric trucks in India, enhancing indigenous capabilities under the Atmanirbhar Bharat vision,' the ministry of heavy industries said in a statement on Friday. 'As a strong show of CPSE (Central public sector enterprises) leadership, the Steel Authority of India Limited (SAIL) has committed to procure 150 e-trucks over the next two years for deployment across multiple locations. Additionally, SAIL has set an internal target to ensure that at least 15% of all vehicles hired across its units are electric,' it added. Electric trucks are likely to be used in sectors such as cement, ports, steel, and logistics, a senior government official said during the press briefing. Manufacturers of e-trucks are mandated to provide warranties to buyers for electric vehicle batteries as well as the vehicle and the motor, the official said. The battery must be covered under a warranty for five years or 500,000 kilometres, whichever is earlier. The vehicle and motor must have a warranty of five years or 250,000 kilometres, whichever is earlier, as per the ministry's statement. A key condition to avail incentives for buying electric trucks under the scheme is a mandatory scrapping certificate issued by the ministry of road transport and highways (MoRTH). 'These certificates are tradeable. Anyone in Chennai, for instance, can scrap their ICE truck, and someone in, say, Delhi, can buy that scrapping certificate and avail the incentives,' the government official said. ICE refers to conventional internal combustion engines of vehicles that run on fossil fuels. Manufacturers also have to follow a phased manufacturing programme (PMP) for the zero-emission e-trucks. The PMP requires manufacturers to source certain parts locally, while listing components they are allowed to import. Policy experts said the incentives for electric trucks under the PM E-Drive scheme can be the first step towards decarbonising critical sectors such as logistics, which use diesel-guzzling trucks. 'The ₹ 5,000 per kWh incentive is a good move and should help more people seriously consider electric trucks, especially those running large fleets where fuel savings really add up,' said Nikhil Dhaka, vice president–public policy, Primus Partners, a management consultancy. 'As for Delhi, getting 1,100 electric trucks on the roads can make a real difference. Trucks are a big source of pollution, and this shift will help improve the city's air quality over time, especially if more such steps follow,' Dhaka added. But electric vehicle financiers said the scrapping certificate mandate could make some small fleet owners and owner-drivers think twice about switching to e-trucks. 'Many older diesel trucks, particularly in NCR (national capital region), are still operational despite being past their prime. Owners hesitate to part with them due to uncertain resale value and operational familiarity,' said Dhiraj Agrawal, chief business officer, Mufin Green Finance. A digitized and decentralised scrapping mechanism and fair and predictable scrapping value is required to encourage low- and mid-income operators to make the switch to electric vehicles, said Agrawal.
Time of India
09-07-2025
- Automotive
- Time of India
Ola Electric shares in focus on launching MoveOS 5, co's biggest software upgrade yet
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Ola Electric are expected to be in the spotlight on Wednesday, July 9, after the company announced the mass roll-out of MoveOS 5 , its largest software update to Bengaluru-based electric vehicle maker stated that the update will roll out this week for all S1 electric scooters and Roadster X motorcycles via an over-the-air (OTA) is Ola Electric's proprietary in-house operating system designed to power its line-up of electric two-wheelers. The MoveOS 5 update, according to the company, introduces more than 50 new features and enhancements aimed at improving performance, efficiency, and user the rollout of MoveOS 5, Ola Electric has optimised energy management systems, real-time monitoring, and battery performance. The company stated that the update results in smoother ride quality, smarter energy recuperation, and increased reliability across all generations of its of the key features introduced include DIY Mode, Road-Trip Mode, Easy Park, Live Location Sharing, SOS Alerts, Find My Vehicle, a Notification Centre, and infotainment widgets such as Cricket and Weather. These features are aimed at improving convenience, control, safety, and connectivity for users.'MoveOS 5 is the latest upgrade in our journey to build the most advanced and intelligent OS for EV two-wheelers. This upgrade isn't just about new features, it fundamentally enhances the performance, reliability, and range of our vehicles. With smarter energy management, real-time system monitoring, and more user control over ride settings, we're enabling our riders to get more out of every ride. MoveOS 5 is a reflection of our commitment to continuous innovation and product evolution, and it's been engineered to deliver a riding experience that is not only more personalized, but also more robust, efficient, and future-ready,' said an Ola Electric said the update is compatible with its Gen 3 platform and enhances the in-house Motor Control Unit (MCU) for better vehicle responsiveness. The OTA rollout begins this week, making the update accessible to users without requiring a service centre Electric shares closed 1.9% lower at Rs 40.77 on the BSE on Tuesday.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
07-07-2025
- Politics
- Time of India
Elon Musk calls out Epstein case delay; asks ‘What's the time', then answers: ‘It's no-one-has-been…'
Reigniting the debate around the infamous Epstein list, Elon Musk has shared a series of posts on microblogging platform X (formerly Twitter). In one such post, Musk asked 'What's the time?', adding 'Oh look, it's no-one-has-been-arrested-o'clock again'. He also shared an image set to 0000 reading 'The Official Jeffrey Epstein Pedophile Arrest Counter.' In another post, the Tesla and SpaceX CEO shared a satirical timeline that mocked changing stories about the long-promised Epstein list. The timeline shifts from 'We will release the Epstein list' to 'We just need more time' to 'The Epstein list is on my desk' and finally ending with the line: 'There is no Epstein list.' He placed angry emoji in the caption. The tech billionaire shared another post with a bull-eye emoji. Image in the post reads: 'The people saying Elon should work to make the Republican party better are the same ones who have been calling to primary the few Republicans who want a smaller government'. Donald Trump hits back at Elon Musk after creating America Party Notably, Musk's posts come hours after Trump criticised Tesla CEO Elon Musk for creating a new political party — American Party. Trump shared a long post on Truth Social expressing his disappointment over Elon Musk's recent actions. Trump stated that he is 'saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a TRAIN WRECK over the past five weeks." In the post, Trump opposed the idea of forming a new political party. '"He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States – The System seems not designed for them," Trump wrote. He also emphasised that creation of a third party will lead to complete chaos and disruption. Trump also revealed the reason behind Elon Musk's action. The US President liked Musk's dissatisfaction to the recently passed "One Big Beautiful Bill," which Trump signed into law on July 4. According to Trump, this bill "eliminates the ridiculous Electric Vehicle (EV) Mandate," a policy he has long opposed and campaigned against. Trump expressed surprise, claiming that when Musk offered his "total and unquestioned Endorsement," he had no issues with the termination of the EV mandate, despite it being a central part of Trump's platform. OPPO Find X8 Ultra Review: Camera Powerhouse with Next-Gen Imaging! AI Masterclass for Students. Upskill Young Ones Today!– Join Now
