OLA Electric Shakes Up the Market with Game-Changing Electric Motorcycles; Stock Soars 16%

Shares of Ola Electric Mobility, India's top manufacturer of two-wheeler electric vehicles, continued to climb after their market debut. In early morning trading today, the Ola Electric stock price jumped by 16%, reaching ₹128.30 per share.

This rise follows the company's recent expansion into the two-wheeler motorcycle segment, where it introduced three electric bike models—Roadster Pro, Roadster, and Roadster X, priced at ₹74,999, ₹1,04,999, and ₹1,99,999, respectively.

Additionally, the company revealed plans to begin integrating its own battery cells into its vehicles starting in Q1 FY26. At Sankalp 2024, Ola's annual launch event held at its Future Factory in Krishnagiri, Tamil Nadu, on August 15, 2024, the company also showcased the locally developed Bharat 4680 cell and battery pack, the new Gen-3 platform, and MoveOS 5.

At the event, Bhavish Aggarwal, Founder and CMD of Ola Electric, commented, “Motorcycles currently represent two-thirds of India’s two-wheeler market. Ola’s entry into this segment will further accelerate the adoption of electric vehicles (EVs) in the two-wheeler market."

He pointed out the company's success in driving EV adoption in the scooter market and noted that with Ola's innovative lineup, they are now focused on significantly enhancing EV penetration through their motorcycle offerings.

Aggarwal further stated, “By integrating our own cells into our vehicles starting early next year, we are dedicated to advancing widespread EV adoption across India.”

Q1 Impacted by Subsidy Reductions

In April, Ola Electric lowered the prices of its most affordable scooter model to boost demand after the government reduced EV subsidies. The company plans to cut costs further by using its own batteries starting next year.

However, these discounts impacted profitability in the June quarter, with Ola Electric reporting a consolidated loss of ₹347 crore for Q1 FY25, compared to ₹267 crore in the same period last year.

Revenue from operations for the quarter increased to ₹1,644 crore, up from ₹1,243 crore in the corresponding quarter of the previous fiscal year, driven by a sharp rise in sales.

June saw the highest-ever vehicle deliveries by the company at 1,25,198 units, compared to 70,575 units delivered in the same period last year, according to Ola Electric Mobility. Aggarwal mentioned that Ola Electric's market share during the quarter reached a record 49%.

Approaching EBITDA Breakeven

The company noted that it ramped up deliveries of its mass-market scooter lineup (S1 X portfolio) during the quarter, which contributed to accelerated growth. The existing product lineup (S1 Pro, S1 Air, and S1 X+) also experienced strong demand, sustaining growth momentum throughout the quarter.

The automotive segment (E2W) showed significant improvement in EBITDA margin and is nearing EBITDA breakeven. The segment's EBITDA margin for the quarter was 1.97 percent, an increase of 632 basis points year-over-year from the 8.29 percent EBITDA margin recorded in the quarter ending June 30, 2023.

The growing scale of operations has allowed the company to benefit from reduced manufacturing costs and supply chain optimizations. These scaling benefits are further enhanced by the company’s platform-based product development and manufacturing technology, which allows for a high degree of commonality across its products, as stated in the company's exchange filing.