Ola Electric stock analysis and expert insights in detail

Stock overview

Ticker	Ola Electric
Sector	Electric Vehicles (EVs)
Market Cap	₹ 20,000 Cr
CMP (Current Market Price)	₹ 45
52-Week High/Low	₹ 158/40
Beta	1.05 (Low volatility)

About Ola Electric India Ltd.

Ola Electric is one of India’s prominent EV startups, spun off from ride-hailing giant Ola. It aims to disrupt the Indian two-wheeler market with electric scooters like the S1 and S1 Pro. Ola also has ambitious plans for a Gigafactory and aims to produce electric cars in the future. While the company has made significant headway in branding and initial market penetration, several operational and structural issues continue to plague its journey.

Primary growth factors for Ola Electric India Ltd

1. EV Tailwinds in India: Government subsidies, FAME-II extension, and EV policy support.
2. Brand Recall: Strong marketing, digital campaigns, and app-based vehicle booking.
3. Vertical Integration: Plans to produce batteries in-house via the Ola Gigafactory.
4. Export Potential: Looking to tap into developing markets with affordable EV offerings.
5. Product Expansion: Plans to launch e-motorcycles and a mass-market electric car by FY27.

Q1 FY26 financial performance

Metric	Q4 FY 25	YoY Growth	QoQ Growth
Revenue	₹ 896 cr	-48%	17%
Expense	₹ 1,065 cr	-42%	-7%
Loss	₹ 428 cr	20%	-50%

Ola Electric delivered poor results on a YoY basis with revenue down by 48% and losses shooting up by almost 20%. Ola continues to burn cash as it invests heavily in production, but has yet to reach profitability or stable gross margins.

Detailed competition analysis for Ola Electric India

Company	Market Cap	Revenue	P/E Multiple	RoCE
Ola Electric	₹ 20,000 cr	₹ 896 cr	Loss Making	-28%
Bajaj Auto	₹ 2,30,000 cr	₹ 12,646 cr	31x	28%
Eicher Motors	₹ 1,53,000 cr	₹ 5,241 cr	32 x	29%
TVS Motors	₹ 1,36,000 cr	₹ 11,542 cr	61 x	20%

Ola Electric continues to struggle with profitability in a market that has behemoths like Bajaj Auto and Eicher Motors. These competitors have years of experience in delivering strong profit and revenue growth and Ola Electric needs to control its costs and preserve its margins to emerge as an able competitor.

Company valuation insights: Ola Electric India

As per the Discounted Cash Flow analysis:

It estimates the intrinsic value of Ola Electric shares based on expected future cash flows:

• Intrinsic Value Estimate: ₹38 per share
• Upside Potential: –15%
• WACC: 12.1%
• Terminal Growth Rate: 4%

Major risk factors affecting Ola Electric India

• Heavy Cash Burn: Ola is losing money at scale. Q4FY25 loss of ₹350 crore on modest revenue raises sustainability concerns.
• Product Quality & Safety Issues: Frequent complaints about battery fires, scooter breakdowns, and poor servicing.
• Customer Trust Deficit: Aggressive marketing has not always translated to customer satisfaction. Trust scores on service and reliability remain poor.
• Policy Dependency: EV subsidies are crucial to its pricing model. Any rollback will significantly impact affordability.
• Gigafactory Delays: The touted battery plant is still under construction. Any delay here affects vertical integration strategy.
• Mounting Competition: Players like Ather, TVS iQube, Hero Vida, and Bajaj Chetak are rapidly gaining market share with better reliability and dealer support.
• Negative Working Capital Cycle: High inventory, pay-later schemes, and lack of strong dealer-financing tie-ups stretch cash flows.

Technical analysis of Ola Electric India

• Resistance: ₹46-48
• Support: ₹ 40
• Momentum: Negative to Neutral
• RSI (Relative Strength Index): 48 (Neutral)
• 50-Day Moving Average: ₹44
• 200-Day Moving Average: ₹40

Ola Electric India stock recommendation by Ketan Mittal

Recommendation: Reduce/Exit

Target Price: ₹40 (6-month horizon); ₹37-38 (12-month horizon); 

Rationale

Recommend a Sell on Rally / Reduce approach for Ola Electric.

Recommendation

Reduce

Investors with exposure should consider trimming holdings.

Fresh entry not advised until business metrics stabilize and risk-reward turns favorable.

If you found this helpful and want regular stock trade calls, check out my StockGro profile here: https://stockgro.onelink.me/vNON/6m6ykj0d

Conclusion

Ola Electric is an ambitious player in India’s fast-growing EV market, with grand plans across the value chain. However, recurring losses, product reliability concerns, mounting competition, and lack of transparency make it a high-risk bet at current levels. Unless the company demonstrates clear improvements in customer trust, profitability metrics, and delivery capabilities, long-term sustainability is questionable.