Latest news with #ProjectLakshya
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
14-07-2025
- Automotive
- Time of India
Ola Electric shares jump nearly 20% despite halved revenue, continued losses
BENGALURU: Shares of Ola Electric surged 19.75% on Monday to close at Rs 47.66, even as the company reported a sharp year-on-year drop in revenue and a consolidated net loss of Rs 428 crore for the quarter ended June 30, 2025. The stock hit an intraday high of Rs 47.76 on the NSE, up from its previous close of Rs 39.80. The rally came despite the company's revenue from operations halving to Rs 828 crore in Q1 FY26, from Rs 1,644 crore in the same quarter last year. On a sequential basis, revenue rose 35.5% from Rs 611 crore in Q4 FY25. Ola's net loss narrowed from Rs 870 crore in the previous quarter, while Ebitda losses reduced to Rs 237 crore from Rs 695 crore. Vehicle deliveries for the quarter stood at 68,192 units, up 32.7% sequentially, aided by stronger demand for its Gen 3 scooter portfolio, which now accounts for over 80% of total sales. The company's auto segment turned Ebitda positive in June, its first profitable month since launch. Gross margins in the auto business improved to 25.6% in Q1, from 13.8% in Q4, helped by internal cost controls, vertical integration and lower warranty costs. Despite the top-line contraction, investor sentiment appeared buoyed by the company's operational turnaround efforts. On a post-earnings analyst call, founder and CEO Bhavish Aggarwal said Ola was 'structurally profitable' at the auto level and would remain Ebitda positive from Q2 onwards. He also cited cost-cutting measures under Project Lakshya that brought down monthly opex in the auto business from Rs 178 crore to Rs 105 crore. Free cash flow improved to -Rs 107 crore from -Rs 455 crore last quarter. Ola said it is on track to commercially deploy its in-house Bharat 4680 cell by the Navratri festival and launch High-Voltage Rare-Earth-free (HRE) motors in Q3. The company reaffirmed its FY26 guidance of 3.25-3.75 lakh vehicle sales and revenue of Rs 4,200-4,700 crore, with auto Ebitda expected to exceed 5% for the full year. The adoption of its paid software layer, MoveOS+, rose to nearly 50% of new users in Q1, up from 2% in Q4. 'This is a true digital business within our hardware business,' Aggarwal told analysts, projecting multi-hundred crore topline potential from software in the coming years. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hindustan Times
14-07-2025
- Automotive
- Hindustan Times
Ola Electric shares jump 18% despite loss in Q1: Here's why the stock surging
Shares of Ola Electric surged over 17% on Monday after the company reported a narrower consolidated net loss of ₹428 crore for Q1 FY26, compared to ₹870 crore in the previous quarter, driven by stronger sales of its newer, more cost-efficient scooters. A man walks past the logo of Ola Electric during a press conference ahead of it's IPO launch in Mumbai, India, July 29, 2024. (Reuters) The stock rose as much as 18.27 per cent to an intraday high of ₹47.07 on the NSE after the market closed, rebounding after several months of decline. Recently, the stock was trading at an all-time low of ₹39.6. The sudden surge comes as Ola Electric on Monday reported a 35.5 per cent jump in revenue from operations for the April–June quarter of FY26, reaching ₹828 crore, up from ₹611 crore in the previous quarter ending March 31, 2025, reported news agency PTI. The Bengaluru-based electric vehicle manufacturer said it delivered 68,192 vehicles in Q1 FY26, marking a 32.7 per cent quarter-on-quarter increase compared to 51,375 units in Q4 FY25. The company announced that its auto business turned EBITDA positive in June 2025, citing strong gross margins driven by its vertical integration strategy. Operating cost efficiency driven by Project Lakshya Ola Electric attributed significant operational efficiencies to its cost optimisation initiative, Project Lakshya. The company said monthly auto operating expenses were reduced from ₹178 crore to ₹105 crore. 'Consolidated operating expense now stands at ₹150 crore per month, and further reduction to ₹130 crore a month is targeted through FY26,' the company said in a statement, cited by news agency PTI. Looking ahead, Ola Electric expects to sell between 3,25,000 and 3,75,000 vehicles in FY26, generating revenue between ₹4,200 crore and ₹4,700 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 per cent, and the company anticipates full-year auto EBITDA of above 5 per cent,' the statement said. The company also expects the auto business to remain EBITDA positive from Q2 onwards. Ola Electric said its Gen 3 scooters, launched recently, accounted for 80 per cent of total scooter sales in Q1. 'These scooters have not only delivered better margins but have also significantly reduced warranty claims, reflecting the company's ongoing engineering improvements,' it said. (With PTI inputs)
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Business Standard
14-07-2025
- Automotive
- Business Standard
Ola Electric Mobility Q1 results: Loss widens 23%, revenue falls 50%
Ola Electric Mobility posted a deeper net loss for the quarter ended 30 June, as the electric scooter maker contended with a sharp drop in revenue. The company reported a consolidated loss of ₹428 crore, widening by 23 per cent from ₹347 crore in the same period a year earlier. Revenue from operations slumped nearly 50 per cent to ₹828 crore, down from ₹1,644 crore a year ago. The steep decline in sales was partially offset by cost-cutting measures, with total expenses falling 42 per cent year-over-year to ₹1,065 crore. The results highlight the challenges facing India's electric vehicle sector, as it grapples with softening demand and heightened competition, even as firms push to scale production and capture market share. Ola's market share is slipping amid rising competition from incumbents like Bajaj Auto and TVS. While losses widened year-over-year, the company's net loss declined by more than 50 per cent on a quarterly basis. During the quarter under review, the company also reported a positive EBITDA. 'The company's auto business turned EBITDA positive in June, on the back of strong gross margins owing to the company's vertical integration strategy,' said the company in a statement. Ola Electric delivered a total of 68,192 vehicles in Q1 FY26, compared to 51,375 units delivered in Q4 FY25, marking an increase of 32.7 per cent quarter-on-quarter (QoQ). The auto segment EBITDA improved sharply to -11.6 per cent, compared to -90.6 per cent in Q4 FY25, with June marking the first EBITDA-positive month for the auto business. The consolidated EBITDA also saw a substantial recovery to -28.6 per cent from the previous quarter. The company's cost optimisation initiative, Project Lakshya, has driven significant operating efficiencies, reducing monthly auto operating expenses from ₹178 crore to ₹105 crore. Consolidated operating expenses now stand at ₹150 crore per month, with further reductions targeted to approximately ₹130 crore per month through FY26. Operating cash flow for the auto business was nearly neutral in Q1, and free cash flow improved to -₹107 crore, a significant improvement from -₹455 crore in Q4. Ola Electric's product roadmap continues to yield strong customer traction. The newly introduced Gen 3 scooters accounted for 80 per cent of total scooter sales during the quarter. These scooters have not only delivered better margins but have also significantly reduced warranty claims, reflecting the company's ongoing engineering improvements. Meanwhile, the rollout of Ola Electric's Roadster X motorcycles is progressing in phases, with the product now available in 200 stores across India and set to scale further during the upcoming festive season. On the software front, MoveOS+ adoption surged to nearly 50 per cent in new customers (up from 2 per cent in Q4). One of Ola Electric's most significant technological advancements is the in-house production of its 4680 Bharat Cell, which will begin powering vehicles starting this Navratri. The company expects that by the end of FY26, it will fully utilise the 1.4 GWh capacity, and install the remaining capacity to reach 5 GWh, scaling consumption to 5 GWh through FY27. The company has also successfully developed Heavy Rare Earths (HRE)-free motors, which are scheduled for production deployment in Q3 FY26. These initiatives, enabled by the company's deep investment in vertical integration and R&D, are designed to reduce costs and enhance performance.
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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.
