Latest news with #OlaElectricMobility
Time of India
16-07-2025
- Automotive
- Time of India
Ola Electric shares fall 3% on profit booking. Should you buy or sell after Q1 results?
Ola Electric Mobility shares declined 3.08% to ₹45.63 as investors booked profits after an 18% surge in the previous session, paring gains from the recent rally. On Monday, Ola Electric Mobility reported a consolidated net loss that widened by 23% to ₹428 crore for the quarter ended June 30, 2025. However, the loss was lower than Kotak Institutional Equities' expectations. Despite this, the research firm maintained its "SELL" rating with an unchanged fair value of ₹30, based on DCF methodology. The report stated, "Ola Electric's 1QFY26 losses were lower than our estimates, driven by- 1. Better-than-expected volume offtake (7k units pertaining to previous quarter backlog) 2. Better-than-expected gross margin (Gen-3 shift) 3. Reversal in warranty provisioning, and (4) cost-control measures. 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)." The company reported a consolidated net loss that widened by 23% to ₹428 crore for the quarter ended June 30, 2025, compared to ₹347 crore in the same period last year. Revenue from operations dropped sharply by 49.6% year-on-year to ₹828 crore. The revenue from operations compares with ₹1,644 crore reported in the corresponding quarter of the previous financial year. 'While profitability is improving, another major highlight is cash flow. Our auto business was almost neutral on operating cash flow in Q1, with a marked improvement in free cash flow (FCF) to -₹107 crore for the auto segment and -₹282 crore on a consolidated basis,' the company said in a letter to its shareholders. Further, the company expects the operating cash flow of its auto business to turn positive later this year. It noted that the auto segment requires minimal sustenance capex, with most capital expenditure directed towards research and development, followed by limited growth capex. The company managed to reduce its total expenses by 42.4% YoY to ₹1,065 crore, down from ₹1,849 crore in the same period last year. The EBITDA margin also stood at -28.6% in Q1 FY26, compared to -12.5% in the corresponding quarter of the previous fiscal year. However, Nomura Research maintains a positive view on EV margins, emphasizing a major transition in the Indian electric two-wheeler (E-2W) industry as it shifts from subsidy-led growth toward a more sustainable and profitable phase. Nomura Research "The Indian E-2W industry is transitioning from a subsidy-led growth phase to a more sustainable model. Industry-wide profitability is gradually improving as players focus on better cost structures, in-house capabilities (like batteries, ABS, and motors), and larger volumes. Battery costs have started declining again in recent quarters, supporting margin expansion and reducing price pressure. Simultaneously, there is a visible shift toward better quality and more reliable products, especially in the mass segment, which is critical to capturing the next leg of demand."
Time of India
16-07-2025
- Automotive
- Time of India
Ola Electric shares slide over 3% after Maharashtra orders closure of unlicensed showrooms
Shares of Ola Electric Mobility slipped as much as 3.5% on Wednesday to Rs 42.60 on BSE after a report stated that the Maharashtra Transport Department had directed regional authorities to shut down the company's showrooms and service centres operating without valid trade certificates. The regulatory action follows a letter dated April 16 from the state's Joint Transport Commissioner, which noted that 121 Ola Electric showrooms were found operating without the mandatory trade certificates, and 109 show-cause notices had been issued. According to The Economic Times, which cited the letter, 75 showrooms have already been shut down. The state transport department has now instructed district-level transport offices to take immediate action. 'If the showroom or store-cum-service center of M/s Ola Electric Mobility Limited in your area of operation is conducting business without obtaining a trade certificate from the transport office, action should be taken to close that center or showroom, and its original trade certificate should be cancelled,' the letter stated. The crackdown is part of a broader enforcement drive by the Maharashtra government, which has already conducted multiple raids on Ola Electric outlets. According to the same letter, a total of 192 vehicles were seized during these operations. Regulatory scrutiny and sales slump The regulatory headwinds come at a time when Ola Electric is already under pressure from central ministries. Last month, the company received inquiry emails from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways over alleged violations related to trade certificates and discrepancies in vehicle registrations. This scrutiny has coincided with a sharp deterioration in the company's operational performance. According to Vahan data cited by The Economic Times, Ola Electric has sold 69,142 electric scooters so far in 2025 — a steep drop from 1,54,297 units during the same period last year. The decline has significantly eroded the company's market share in the electric two-wheeler segment. Eroding market position Ola Electric's market share has declined sharply from 33.4% to 19.6% year-on-year, after selling 60,500 units in the first quarter of FY26. The company has ceded ground to rivals TVS Motor, Bajaj Auto, and IPO-bound Ather Energy, all of whom outpaced Ola in June sales. This follows an earlier compliance concern this year, when a gap between reported sales of 25,000 units and only 8,500 actual registrations raised fresh questions about the company's disclosure practices. The company's financial performance has also shown signs of stress. In Q1 FY26, net loss widened to Rs 428 crore, up from Rs 347 crore in the same quarter last year. Revenue halved to Rs 828 crore, compared to Rs 1,644 crore in Q1 FY25. Also read | Maharashtra transport department cracks down on Ola Electric showrooms operating without trade certificates ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) ETMarkets WhatsApp channel )
News18
15-07-2025
- Automotive
- News18
Ola Electric Shares Dip 3% On Profit Booking After Q1 Results: Buy, Sell or Hold?
Ola Electric Mobility's shares slipped 3.08% to Rs 45.63 on Tuesday as investors booked profits after an 18% surge in the previous session Ola Electric Shares Dip: Ola Electric Mobility's shares slipped 3.08% to Rs 45.63 on Tuesday as investors booked profits after an 18% surge in the previous session. The pullback trimmed gains from the recent rally that followed the company's Q1FY26 results. The EV maker reported a consolidated net loss of Rs 428 crore for the June quarter, widening 23% year-on-year. While the loss exceeded the previous year's figure, it was narrower than expectations set by Kotak Institutional Equities. The firm, however, maintained its 'SELL" rating with an unchanged fair value of Rs 30, citing industry headwinds and subdued volume growth. Ola posted revenue of Rs 830 crore, down 50% YoY but up 36% sequentially, primarily due to backlog clearance from Q4FY25. Kotak noted that Ola's Q1 registrations stood at 60,000 units while deliveries were 68,000, reflecting the inventory spillover. Despite reporting an EBITDA loss of Rs 240 crore—better than the Rs 290 crore loss projected by Kotak—the brokerage flagged concern over weak demand and rising competitive pressure in the electric two-wheeler market. The gross margin improved, aided by a shift to Gen-3 products and tighter cost controls. Kotak cut its FY26–28 volume assumptions by 12–16%, forecasting just 3.1 lakh units for FY26 against Ola's guidance of 3.25–3.75 lakh units. It warned that the muted industry growth and intensifying competition could hinder Ola's market share and profitability goals. Future performance, Kotak added, will depend on the success of cost optimisation efforts under 'Project Lakshya', and the operational ramp-up of its 5 GWh Gigafactory, which could serve as a key upside trigger. However, persistent challenges in the EV sector keep the brokerage cautious on the stock's long-term outlook. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
15-07-2025
- Automotive
- Time of India
Ola Electric shares fall 3% on profit booking. Should you buy or sell after Q1 results?
Ola Electric Mobility shares declined 3.08% to Rs 45.63 as investors booked profits after an 18% surge in the previous session, paring gains from the recent rally. On Monday, Ola Electric Mobility reported a consolidated net loss that widened by 23% to Rs 428 crore for the quarter ended June 30, 2025. However, the loss was lower than Kotak Institutional Equities' expectations. Despite this, the research firm maintained its "SELL" rating with an unchanged fair value of Rs 30, based on DCF methodology. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The report stated, "Ola Electric's 1QFY26 losses were lower than our estimates, driven by (1) better-than-expected volume offtake (7k units pertaining to previous quarter backlog), (2) better-than-expected gross margin (Gen-3 shift), (3) reversal in warranty provisioning, and (4) cost-control measures. 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 Rs 30 based on DCF methodology (3.5X FY2027E EV/sales)." The company reported a consolidated net loss that widened by 23% to Rs 428 crore for the quarter ended June 30, 2025, compared to Rs 347 crore in the same period last year. Revenue from operations dropped sharply by 49.6% year-on-year to Rs 828 crore. The revenue from operations compares with Rs 1,644 crore reported in the corresponding quarter of the previous financial year. 'While profitability is improving, another major highlight is cash flow. Our auto business was almost neutral on operating cash flow in Q1, with a marked improvement in free cash flow (FCF) to -Rs 107 crore for the auto segment and -Rs 282 crore on a consolidated basis,' the company said in a letter to its shareholders. Live Events Further, the company expects the operating cash flow of its auto business to turn positive later this year. It noted that the auto segment requires minimal sustenance capex, with most capital expenditure directed towards research and development, followed by limited growth capex. The company managed to reduce its total expenses by 42.4% YoY to Rs 1,065 crore, down from Rs 1,849 crore in the same period last year. The EBITDA margin also stood at -28.6% in Q1 FY26, compared to -12.5% in the corresponding quarter of the previous fiscal year. However, Nomura Research maintains a positive view on EV margins, emphasizing a major transition in the Indian electric two-wheeler (E-2W) industry as it shifts from subsidy-led growth toward a more sustainable and profitable phase. Nomura Research "The Indian E-2W industry is transitioning from a subsidy-led growth phase to a more sustainable model. Industry-wide profitability is gradually improving as players focus on better cost structures, in-house capabilities (like batteries, ABS, and motors), and larger volumes. Battery costs have started declining again in recent quarters, supporting margin expansion and reducing price pressure. Simultaneously, there is a visible shift toward better quality and more reliable products, especially in the mass segment, which is critical to capturing the next leg of demand."
Time of India
15-07-2025
- Automotive
- Time of India
Ola Electric surges on D-St, but analysts still advise caution
Shares of electric two-wheeler maker Ola Electric Mobility rallied about 20 per cent on Monday, the biggest single-day move in eight months, after the company's first-quarter results were better-than-expected. The stock is best suited for high-risk traders and investors, as analysts warn of continued sharp price swings in months ahead. Ola ended at ₹47.7 on Monday, up 19.75 per cent , after hitting a fresh 52-week low of ₹39.6. ' Ola Electric 's Q1 shows a sharp operational turnaround—losses narrowed from ₹870 crore to ₹428 crore, gross margins hit a record 25.6 per cent , and the auto segment turned Ebitda (earnings before interest, taxes, depreciation, and amortization)-positive in June,' said Jahol Prajapati, research analyst at Samco Securities . Its revenue from operations also rose to ₹828 crore in the June quarter from ₹611 crore in the previous quarter. However, it was down almost 50 per cent from the same period a year ago. 'The company's bullish forecast of 35-40 per cent margins and upcoming ramp-up of new products further renewed interest in the stock,' said Sagar Shetty, research analyst, StoxBox. 'The growth during the quarter was largely supported by the successful launch of its Gen 3 scooters, aiding the company to maintain accretive margins.' The company said in an exchange filing that it expects to sell between 325,000 and 375,000 vehicles and generate revenue of ₹4,200-₹4,700 crore for FY26. Ola shares are down around 48 per cent since their debut in August 2024. As the stock declined, retail investors increased their stakes in the company. The percentage of retail shareholders holding less than ₹2 lakh in the company has increased to 12 per cent in the March quarter from 4.45 per cent at the time of listing. Shetty said that Ola continues to cede significant market share to established players and has a track record of overly optimistic guidance. 'We recommend investors maintain a cautious approach and suggest that they wait to see how the second quarter unfolds in terms of sales and overall performance,' he said. Prajapati said Ola is building a 'credible profitability' story, on account of continued cost discipline, improving warranty dynamics, and an FY26 target of 35-40 per cent gross margins. 'For investors with a high-risk appetite, it's a bold EV play on vertical integration. Conservative investors might still prefer steadier names like TVS or Bajaj for now,' he said.
