Latest news with #OlaElectricMobilityLtd
Business Standard
3 days ago
- Business
- Business Standard
Garment Mantra Lifestyle Ltd Partly Paidup leads losers in 'B' group
Pil Italica Lifestyle Ltd, Ola Electric Mobility Ltd, Linc Ltd and IFB Agro Industries Ltd are among the other losers in the BSE's 'B' group today, 03 June 2025. Pil Italica Lifestyle Ltd, Ola Electric Mobility Ltd, Linc Ltd and IFB Agro Industries Ltd are among the other losers in the BSE's 'B' group today, 03 June 2025. Garment Mantra Lifestyle Ltd Partly Paidup tumbled 10.00% to Rs 0.81 at 14:20 stock was the biggest loser in the BSE's 'B' the BSE, 16456 shares were traded on the counter so far as against the average daily volumes of 1.21 lakh shares in the past one month. Pil Italica Lifestyle Ltd lost 7.54% to Rs 17.29. The stock was the second biggest loser in 'B' the BSE, 1.47 lakh shares were traded on the counter so far as against the average daily volumes of 67966 shares in the past one month. Ola Electric Mobility Ltd crashed 7.30% to Rs 49.77. The stock was the third biggest loser in 'B' the BSE, 176.12 lakh shares were traded on the counter so far as against the average daily volumes of 36.86 lakh shares in the past one month. Linc Ltd dropped 6.73% to Rs 141.4. The stock was the fourth biggest loser in 'B' the BSE, 5889 shares were traded on the counter so far as against the average daily volumes of 13616 shares in the past one month. IFB Agro Industries Ltd plummeted 6.54% to Rs 777. The stock was the fifth biggest loser in 'B' the BSE, 5535 shares were traded on the counter so far as against the average daily volumes of 3034 shares in the past one month.
News18
3 days ago
- Automotive
- News18
Ola Electric Shares Dip 7% As 3.2% Stake Changes Hands Via Block Deal; Time To Sell?
Last Updated: Shares of Ola Electric Mobility Ltd were under significant pressure in Tuesday's trading session, dropping as much as 7.04% Ola Electric Share Price: Shares of Ola Electric Mobility Ltd were under significant pressure in Tuesday's trading session, dropping as much as 7.04 per cent to a low of Rs 49.91. The stock was last seen 5.9 per cent lower at Rs 50.52, extending its six-month losses to 48.74 per cent. On the earnings front, the EV-focused company reported a consolidated net loss of Rs 870 crore for the January-March 2025 quarter (Q4 FY25), widening from Rs 416 crore in the same period last year. Revenue from operations plunged 59.48 per cent year-on-year (YoY) to Rs 611 crore, down from Rs 1,508 crore in the year-ago quarter. What Should Investors Do? Kotak Institutional Equities has maintained a 'Downgrade' rating on the stock, slashing its target price to Rs 30 per share. This suggests a potential downside of nearly 44 per cent from its previous close at Rs 53.24. The brokerage warned that Ola Electric is likely to continue facing EBITDA losses due to weakening brand equity and intensifying competition, as noted in a CNBC-TV18 report. It also flagged challenges in the company's entry into the motorcycle segment, citing execution and credibility concerns. Technical Indicators Show Mixed Signals Technically, Ola Electric's stock is currently trading below five of its eight key simple moving averages (SMAs) — including the 5-day, 10-day, 100-day, 150-day, and 200-day SMAs — pointing to bearish signals across various timeframes. However, the Relative Strength Index (RSI) at 57.7 indicates the stock is neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) remains positive at 0.4, staying above the center and signal lines, which suggests some ongoing bullish momentum. For the full fiscal year 2024-25 (FY25), Ola Electric posted a net loss of Rs 2,276 crore, compared with Rs 1,584 crore in FY24. Revenue from operations also fell to Rs 4,514 crore, down from Rs 5,010 crore in FY24. The company said its gross margins improved by 38 per cent YoY in FY25, and in Q1 FY26, gross margins saw a 10 percentage point sequential improvement. Ola Electric aims to achieve profitability in the current fiscal year (FY26), focusing on revenue growth and operating leverage. 'FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability," it stated in a filing.
Mint
28-05-2025
- Automotive
- Mint
Ola Electric's Q4 results will be Bhavish Aggarwal's chance to set the record straight
One year can be a long time in business. In May 2024, Bhavish Aggarwal-led Ola Electric Mobility Ltd dominated India's electric two-wheeler market and was 3 months from a public listing at a valuation of $4 billion. Investors saw the company with excitement as legacy two-wheeler makers remained cautious about jumping into the electric vehicle market. When Ola Electric listed in August 2024, its share price doubled within a fortnight. For the Bengaluru-based startup, it did not seem like its fortunes could go awry, until they did. Cut to May 2025 and Aggarwal, Ola Electric's founder and chief executive, is busy putting out fires. The company's share price has plunged more than 30% since listing on 9 August 2024 and the company has dropped to third in the e-scooter pecking order with legacy players TVS Motor Co. Ltd and Bajaj Auto Ltd surging ahead. Also read | What went wrong for Ola Electric after its $4 billion IPO? To make matters worse, Ola Electric is under scrutiny by the ministry of heavy industries, the ministry of road transport and highways, the Central Consumer Protection Authority, and the Securities and Exchange Board of India for various issues, including a disruption in its vehicle registration operations, lack of trade certificates, and consumer complaints over servicing of its scooters. So when Aggarwal leads the quarterly management call on 29 May post the announcement of the company's fourth-quarter and 2024-25 results, he can expect some tough questions from analysts and investors. Aggarwal is expected to throw light on the demand for its recently launched e-motorcycle RoadsterX, the installation of Ola's own lithium-ion batteries, called Ola Cells, in its scooters, and its cost-reduction programme. The management will also have the chance to clear the air on the regulatory scrutiny the company faces, which has weighed on investor sentiments this year. Ola Electric's share price has fallen by nearly 40% this year. Mint puts together five key factors to watch out for when Ola Electric declares its results on 29 May. Also read | Can Ather, India's Tesla for two-wheelers, beat Ola Electric on the markets? Revenue Ola Electric's Q4 revenue is expected to decline 42% to ₹915 crore from ₹1,598 crore in the corresponding year-ago period, according to Bloomberg's estimate based on projections by two analysts. The company's sales growth slowed significantly in the previous financial year. Ola Electric sold 344,009 e-scooters in 2024-25, a tepid 4.5% rise in sales when compared with the nearly 100% jump to 330,000 units in 2023-24. In exchange filings, Ola Electric has insisted that it recognises revenue from vehicles sold only after those vehicles are registered with transport authorities. For February, for instance, the company claimed that it had sold over 25,000 vehicles but could only register around 8,600 vehicles due to issues with its two registration agencies. As per Ola Electric's disclosures, its backlog of vehicles was to be fully cleared in April, which means the company will not be able to recognise revenue from all the vehicles sold between January and March, the final quarter of 2024-25. Ola Electric has recognised revenue only for 56,642 units for the financial fourth quarter, down from 120,132 registered units for the year-ago January-March quarter. Also read | Ola Electric's sales collapse in a booming electric two-wheeler market ProfitabilityOla Electric's net loss for the January-March quarter is expected to be ₹408 crore, similar to the ₹416 crore loss recorded in the same year-ago period, as per Bloomberg's estimate. Rating agency Icra estimates Ola Electric's FY25 loss to widen to ₹1,900-2,000 crore from ₹1,600 crore in FY24. Investors and analysts will be watching for the company's profitability target. In an earnings call on 7 February after announcing Ola Electric's third-quarter results, Aggarwal had said the company has to reach 50,000 units in monthly sales to turn profitable. The company's latest sales figures are far off that target. Ola Electric's deliveries in April dropped to 19,709 vehicles from 34,160 units during the same month last year, according to data from the government's Vahan portal. Commentary on margins will also be a key factor to watch. Battery plans As per Ola Electric's stated plans, its cell gigafactory for manufacturing lithium-ion batteries should have reached 6.4 GWh capacity by the end of April. However, its current capacity is at 1.4 GWh, suggesting significant delays in scaling up operations at the factory. Ola Electric has said it will begin commercial production of lithium-ion batteries in the first quarter of 2025-26 (the ongoing April-June quarter). Given that the company raised ₹1,227 crore in August last year to scale up its cell gigafactory's capacity to 6.4 GWh, investors are expected to pose questions on the project's updated timeline and how the delay could impact Ola Electric's profitability target. Also read | Ola's battery cell ambition has run into a bump Regulatory clarity With Sebi, the Central Consumer Protection Authority, and the ministries of heavy industry and road transport scrutinizing various aspects of Ola Electric's business, the company's management is expected to address investor concerns over the issues involved. In Maharashtra, the state's transport authority last month asked regional officers to take action against 121 Ola Electric stores that were operating without trade certificates. While the company's sales network has more than 4,000 stores, clarity on how many stores have trade certificates and the status of the regulatory inquiries are expected to come up during the management's call with analysts and investors. RoadsterX plans After multiple delays, Ole Electric began delivering its electric motorcycle RoadsterX to consumers this month. The company is expected to provide insights into initial demand trends for the bike as the e-motorcycle market remains nascent. Moreover, analysts and investors will also be looking for clarity on how many bookings the company received in the last three months for RoadsterX, and the number of deliveries so far. Also read | Bhavish Aggarwal curbs ambition, seeks to raise $300mn for AI venture Krutrim
Mint
18-05-2025
- Automotive
- Mint
Ola Electric raised money to expand cell making capacity. But it's still sitting idle
Ola Electric Mobility Ltd's plan to increase the capacity of its cell manufacturing facility has been delayed, exposing it to risks of higher costs, losing incentives and even technology going obsolete. Ola Cell Technologies Private Ltd (OCT), a wholly owned subsidiary of Ola Electric Ltd, began constructing its gigafactory in May 2023 under a four-phase plan to produce lithium-ion cells for electric vehicle batteries. Of the ₹5,500 crore the company raised by issuing fresh shares in August 2024, it had set aside ₹1,227 crore to expand the capacity of its cell manufacturing facility to 6.4 GWh in the second phase by April 2025. However, it has not utilised any money from these funds, suggesting that OCT is far behind the previously disclosed timeline to investors, said Icra Ltd, the monitoring agency of its public issue, in its 15 May report shared by Ola Electric with exchanges. Icra downgraded Ola Cell Technologies BBB- (Negative) in May. 'The battery cell manufacturing segment is highly technologically complex and has significant dependence on imports for sourcing raw materials, which exposes the project to geopolitical and region-specific risks for raw materials," the agency said in its downgrade note. 'OCT, thus, remains exposed to risks of timely execution, demand/offtake, supply chain and technology obsolescence." Also Read: Defender SUV's prices to drop as Jaguar Land Rover plans local assembly In response to Mint's emailed queries, Ola Electric said, 'We have announced the commercial production of our cells beginning Q1 FY26, and are on track to meet the set timelines. Ola Electric will be the first to commercially manufacture lithium-ion cells in India under the government's ACC (advanced chemistry cell) PLI scheme. We continue to have regular discussions with MHI (ministry of heavy industries) regarding updates on our progress and timelines for each of our set milestones." To be sure, other than the expansion of cell factory, the company had also Out of the ₹5500 crore the company raised through fresh issue of shares in August 2024, ₹2671 crore has been utilised while ₹2829 crore remains unutilised. The stated purpose of the fundraise, other than expansion of cell factory capacity, included investment into research and development, general corporate purposes, expenditure for inorganic growth initiatives and repayment of debt. The unutilised funds have been parked by the company in several fixed deposit accounts, earning ₹54 crore so far in interest income. Original road map The company's founder Bhavish Aggarwal had on 15 August 2024 laid down the vision to achieve 20GWh capacity by 2026 as lithium-ion cells are largely imported from China currently. A cluster of cells makes a battery. The capacity of a gigafactory is the total energy that can be produced from cells produced in a year. In phase 1a, the company initially built 1.4 GWh capacity at ₹1,226 crore, which was completed before Ola Electric filed its red herring prospectus (RHP) before listing in August 2024. This capacity was expected to go up to 5 GWh by February 2025 under phase 1b. In an earnings call on 7 February, Aggarwal said the capital expenditure to expand to 5 GWh will come into effect in the current financial year FY26. According to a project cost vetting report submitted with the RHP, phase 2 was to be completed by 30 April to raise the capacity to 6.4 GWh, and targeted to increase that to 20GWh by 2026. According to the RHP, the company was estimated to utilise ₹859 crore in the financial year 2025 and ₹368 crore in fiscal 2026 for the gigafactory expansion. However, as of 15 May, the funds earmarked for the phase 2 remain unused, indicating that the company is way behind the timeline initially conveyed to investors. 'The testing process post completion of a phase can take time as cells are a complex and sensitive technology," said a person aware of the developments. 'A ramp-up post each phase depends on the completion of all testing and other processes of the previous phase." Incentives at stake While Ola Electric had acknowledged in its RHP that the timeline could change depending on the market reality, a delay will have its implications. In 2022, Ola Electric became the first company to be selected under the ₹18,100 crore production-linked incentive plan to indigenise the cell manufacturing ecosystem in India. Under the scheme, Ola had to invest ₹225 crore per GWh of the committed 20GwH capacity, along with 25% value-addition, within two years. The disbursal of the incentives is contingent upon achieving this milestone. Also Read: Hyundai Motor India profit may take a hit in Q4 as sales remain in slow lane However, IFCI Ltd, the project management agency of PLI for cells, wrote a letter to the company in March stating that it had missed the deadline to complete the first milestone. While the company acknowledged the letter to the exchanges, it did not offer any clarity on the timeline. 'The Company is actively engaged with the relevant authorities in this regard and in the process of filing an appropriate response," Ola Electric said in an exchange filing on 4 March. Under the PLI scheme, the company has to build 12GWh of capacity by 2027 to complete the second milestone and achieve 60% value-addition. Ola Electric had previously stated that it would begin the commercial production of its cells in April-June 2025. The status of the project and the changed timeline remain unclear. A person aware of the development said that the company has sought an extension of the deadline under the scheme from the government. Any risk to the incentives can spell problems for the firm, according to analysts. 'One of the reasons for setting up its own Gigafactory was to take advantage of the PLI for advanced chemistry cells, which would have resulted in a 50% reduction in capital employed for setting up 20 GWhr," Rishi Vora of Kotak Institutional Equities wrote in an 18 March note. The company may have to outsource the construction to a third party or else it would find difficult to install 20GWh capacity in the next two to three years, Vora said. The delay in timelines will also have a bearing on the financial health of the firm. A bump on the road to profit 'The slower-than-expected ramp-up of its Gigafactory or lower-than-expected yield will result in higher cash outflow for the company in the coming quarters, which needs to be monitored," Vora wrote. The company earlier anticipated that the integration of cell capacity will be crucial for its margins, which will aid the profitability of the company. 'At a consolidated level, when our battery cell comes in, we will actually have an expansion of margin," Aggarwal said in Q3 FY25 earnings call on 7 February. Also Read: Rich south India struggles to buy cars while northern and western states surge ahead In October-December of FY25, the company's loss widened to ₹564 crore from ₹364 crore from a year earlier. Ola Electric's shares have tumbled nearly 40% in 2025 against a 3.48% rise in Nifty Auto. 'Ideally, when there is a substantial delay in a project, the delay should be flagged," said Amit Tandon, founder and managing director at IiAS. 'If the project has an impact on profitability, it becomes even more important to reveal the reasons behind the delay." Out of the ₹5500 crore the company raised through fresh issue of shares in August 2024, ₹2671 crore has been utilised while ₹2829 crore remains unutilised. The stated purpose of the fundraise, other than expansion of cell factory capacity, included investment into research and development, general corporate purposes, expenditure for inorganic growth initiatives and repayment of debt. The unutilised funds have been parked by the company in several fixed deposit accounts, earning ₹54 crore so far in interest income.
Mint
25-04-2025
- Automotive
- Mint
‘Not aware': Ola clarifies on reports claiming Maharashtra govt's order to close 100 Ola Electric stores
Ola Electric on Friday clarified about a news article titled 'Ola Electric shares in focus after Maharashtra moves to shut unlicensed stores, seize vehicles', saying that the company was not aware of such developments. In an exchange filing, Ola Electric Mobility Ltd. said that it was not aware of events regarding a notice from the Maharashtra government that it was asked to shut down 100 stores immediately. 'We wish to submit that we are not aware of any such negotiations/ events regarding a notice from the authorities ordering immediate closure of over a 100 showrooms in Maharashtra,' the Bhavish Aggarwal-led company said. It further clarified about the receipt of notices from four states for trade certificates of some stores located there. 'Additionally, we have already informed the exchange, via our intimation dated March 21, 2025, regarding the receipt of notices in four states pertaining to trade certificates for certain stores located in those states,' Ola said. The company also noted that it was not aware of any information that has not been announced on stock exchanges. 'We would like to submit that we are not aware of any information that has not been announced to the exchanges which could explain the movement in the trading of equity shares of the Company,' it said. 'We submit that there is no material impact of this article on the Company,' Ola Electric added. Reports in the media earlier this week stated that Maharashtra authorities are moving to shutter at least 121 of Ola Electric's nearly 450 stores in the country's largest electric two-wheeler market over missing vehicle sales permits. The joint transport commissioner of Maharashtra has asked local transport authorities to close all 121 stores operating without trade certificates. Mint had reviewed the copy of the alleged letter. As per the letter, 75 of these 121 stores have already been closed and the local authorities have been asked to close the remainder. Shares of Ola Electric Mobility Ltd closed 5.13 per cent lower on the NSE during Friday's trade at ₹ 49.72 apiece. On BSE, the shares closed 4.86 per cent lower at ₹ 49.87 apiece. First Published: 25 Apr 2025, 07:22 PM IST
