Ola Electric
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Ola Electric's recent management commentary highlights a strategic pivot towards disciplined growth following a successful operational reset, with a focus on leveraging its vertical integration in the cell business. The anticipated ramp-up of the 6 GWh Gigafactory is expected to enhance revenue streams from both automotive and energy storage segments, supporting Vista's forecast of improving revenue growth and margins. However, management acknowledges potential margin pressures due to competitive pricing and commodity inflation, which could challenge profitability in the near term. Despite these headwinds, the company's strong product pipeline and operational scaling position it well for future growth. The broader industry context remains favorable, with increasing consumer demand for electric vehicles and supportive government policies, although supply chain challenges and economic fluctuations could pose risks. Over the next 12-24 months, key opportunities include the successful scaling of the cell business and the introduction of new models, while watchpoints include execution risks in service quality and the management of competitive pressures
Why We Like This Stock
- Successful operational reset and focus on disciplined growth strategy
- Anticipated ramp-up of the 6 GWh Gigafactory to enhance revenue streams
- Strong product pipeline and transition to LFP-based battery technology support long-term growth
Things To Watch Out For
- Potential margin pressures from competitive pricing and commodity inflation
- Execution risks related to service quality and supply chain management
- Dependence on stable government policies and economic conditions
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,010 | 4,514 | 2,253 | 1,631 | 1,261 |
| Profit Before Tax (Cr.) | -1,597 | -2,252 | -1,829 | -376 | -474 |
| PBT Margin | -31.9% | -49.9% | -81.2% | -23.1% | -37.6% |
| Net Profit (Cr.) | -1,597 | -2,252 | -1,833 | -282 | -356 |
| Earnings Per Share | -3.5 | -4.9 | -4.0 | -0.6 | -0.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HSBC | ▼ Reduce | 24 | 29-Sep-2026 |
| Citigroup | ▼ Sell | 26 | 10-Aug-2026 |
| Goldman Sachs | ► Neutral | 40 | 10-Aug-2026 |
| Kotak Securities | ▼ Sell | 20 | 10-Aug-2026 |
Company Overview
Show Company Profile
Ola Electric Mobility Limited develops, manufactures, and sells electric vehicles in India. It operates through the Automotive and Cell segments. The company provides electric scooters; and electric vehicle components, such as battery packs, motors and vehicle frames, and cells. It also offers charging solutions, as well as operates service centers. Ola Electric Mobility Limited was incorporated in 2017 and is based in Bengaluru, India.