Ola Electric
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Ola Electric is transitioning from a capital-intensive phase to operational scaling, with management emphasizing the completion of major infrastructure investments. This shift is expected to enhance revenue growth as the company leverages its existing capacity and addresses service bottlenecks, leading to improved sales momentum. However, margins may face pressure due to commodity inflation and competitive pricing dynamics. Vista's financial outlook reflects an anticipated revenue improvement, although margins are projected to remain under strain. The company's vertical integration and strong gross margins are expected to provide a buffer against these challenges. The favorable macro environment in India, characterized by robust auto sales and supportive policies for electric vehicles, further supports Ola's growth trajectory. Over the next 12-24 months, key opportunities include scaling the cell business and expanding the auto portfolio, while watchpoints include execution risks in service quality and supply chain management. Overall, Ola Electric's strategic focus on disciplined growth and operational efficiency positions it for potential upside, despite the headwinds it faces in margin pressures and competitive dynamics
Why We Like This Stock
- Completion of major infrastructure investments allows for operational scaling and improved revenue growth
- Vertical integration and strong gross margins provide a buffer against margin pressures
- Favorable macro conditions and supportive EV policies enhance growth prospects
Things To Watch Out For
- Margins are expected to remain under pressure due to commodity inflation and competitive pricing
- Execution risks related to service quality and supply chain management could impact growth
- Weak cash conversion relative to the asset base may hinder financial flexibility
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,010 | 4,514 | 2,253 | 1,682 | 1,316 |
| Profit Before Tax (Cr.) | -1,597 | -2,252 | -1,829 | -550 | -590 |
| PBT Margin | -31.9% | -49.9% | -8118.1% | -32.7% | -44.8% |
| Net Profit (Cr.) | -1,597 | -2,252 | -1,833 | -413 | -443 |
| Earnings Per Share | -3.5 | -4.9 | -4.0 | -0.9 | -1.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| 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.